Section 1: Definitions and General Provisions
Article 1: Definitions
The following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto unless the context otherwise requires:
SAMA: Saudi Central Bank*.
Rules: Rules Regulating Money Changing Business.
Money Changing Business: One or more of the activities set forth in Article 11 of the Rules.
Money Changer: An establishment licensed by SAMA to conduct Money Changing Business in accordance with the provisions of the Rules.
Customer: Any natural or legal person who benefits from the services of the Money Changer or to whom these services are offered.
Invested Capital: The capital allocated by the foreign money changer for the use of its licensed branches in the Kingdom.
License: License issued by SAMA to conduct Money Changing Business.
Financial Year: The calendar year starting from 1 January and ending on 31 December.
Third Party: A service provider to whom some work and functions are outsourced. This includes the owners of the service provider, his/her employees and contract employees, as well as the entity affiliated with the Money Changer.
* The "Saudi Arabian Monetary Agency" was replaced By the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding to 26/11/2020G.
Article 2: Purpose
The objective of these Rules is to:
a. set a regulatory and supervisory framework for conducting Money Changing Business;
b. determine the permissible activities for Money Changers;
c. expand the spread of Money Changing Business, facilitate its provision, and enhance financial inclusion;
d. stimulate innovation, competition and the use of technology in money changing services; and
e. protect the rights of Customers.
Article 3: Scope of Application
These Rules are applicable to Money Changers licensed in accordance with their provisions.
Article 4: Prohibited Activities
a. Any natural or legal person shall be prohibited from the following:
1. Practicing Money Changing Business in the Kingdom without a valid license issued by SAMA in accordance with the provisions of these Rules.
2. Using the terms “money changer”, “money changing agent”, “currency exchanger” or any similar or synonymous expression in any language in its name, commercial address, papers, documents, advertisements or any other way that implies the practice of Money Changing Business without a license.
b. As an exception to the provision of Paragraph (A/1) of this Article, licensed hotels, hotel apartments, and traveling agencies in the Kingdom may exchange currencies for their customers only, provided that such currencies are sold to a licensed bank or Money Changer, the provisions of the Anti-Money Laundering Law and its Implementing Regulations are complied with and the transactions are documented and archived.
Article 5: Responsibility
The Money Changer’s management shall be responsible to ensure compliance with these Rules. The management of each Money Changer shall be responsible for approving policies, procedures and processes which ensure the following:
a. Adherence to the laws, SAMA’s AML, CTF, and fraud and embezzlement instructions as well as information security requirements.
b. Identifying, documenting and addressing risks associated with the Money Changer and developing and implementing adequate risk management policies that are consistent with rules and instructions issued by SAMA.
c. Compliance with the instructions issued by SAMA.