Referring to the instructions of SAMA communicated under Circular No. 341000111354 dated 15/09/1434 H regarding the acceptance and exchange of banknotes and coins by banks operating in the Kingdom to meet public demand.

Accordingly, SAMA emphasizes the need of having sufficient quantities of small denomination banknotes and coins to meet the public's requests for obtaining or exchanging them. This should be made available to everyone at all branches.

For your information and action accordingly, please note that SAMA will conduct field visits to cash centers and bank branches to ensure the availability of various small denominations and coins for individual and corporate customers.

Further to the instructions of SAMA communicated under Circular No. 34734, dated 10/7/1432 H regarding exchanging damaged banknotes from beneficiaries (torn, burned, eroded, incomplete edges or parts, or any of the main features missing due to dirt, adhesive materials, or inappropriate inscriptions, ...).

And based on SAMA's commitment to providing intact banknotes and suitable for circulation, SAMA affirms the acceptance and exchange of various currency denominations after verifying their authenticity with the adoption of the specific mechanism for accepting and compensating damaged currency presented by the public.

For your information and action accordingly, and to emphasize to all bank branches, cash centers to circulate intact banknotes and withdraw damaged and invalid cash from circulation, and to coordinate with SAMA's branches to supply it.

Further to SAMA Circular No. 341000068320 dated 03/06/1434 H concerning the Compliance with Employing Citizens and the Requirements for Contracting with Recruitment Service Companies, and as stated in clause one, Paragraph (2), which specifies that all positions in branches, remittance centers, and cash centers should be exclusively occupied by Saudis, with the aim of completing the Saudization process by 31/12/2013, it has come to our attention that there are still non-Saudi employees working in cash centers, whether as bank staff or employees of contracted companies, which is a violation to the regulations and exposes banks and companies to severe penalties.

Therefore, we hope you will provide us with proof of compliance with the aforementioned instructions and submit a detailed list of employees working in the bank's cash units and centers, as well as those in exchange companies or centers affiliated with contracted companies, including the following information:

Please send the completed form to the Cash Centers and Operations Supervision Department at SAMA within a maximum one week from its date. 

Based on the requirements of Article 4 and Article 5 of The Money Counterfeiting Law 1379H issued by Royal Decree No. (12) dated 21/7/1379H, regarding the establishment of regulations for issuing licenses for currency reproduction in a manner that ensures measures for preventing counterfeiting and protecting it from similar-looking papers and coinages. To ensure the circulation of only genuine currency in the Kingdom of Saudi Arabia, you will find attached the updated regulations for currency reproduction in the Kingdom of Saudi Arabia. We hope that you will act according to them and revoke any previous directives issued in this regard. Applications for obtaining reproduction licenses can be submitted through the central bank's website.

SAMA has recently observed an increase in violations committed by several banks, where certain measures were taken before obtaining prior approval from SAMA. The most significant of these violations include the following:

1. Setting up headquarters for main administrations or operational branches, and then writing to SAMA to obtain approval for the move from the original licensed location to the newly prepared site.

    2. Opening offices in different locations for specific purposes and for a limited period, or at exhibitions or festivals.

     3. Closing operational branches, converting them into offices, or downsizing banking operations within them.

     4. Setting up, installing, or operating ATMs without a license.

     5. Relocating or deactivating operational or non-operational ATMs without obtaining approval from SAMA.

     6. Engaging in speculative activities and bidding on certain locations that have already been licensed to a bank, thereby depriving the location of banking services.

     7. Merging ATM licenses with licenses for active or inactive branches.

     8. Failure to follow through with the process of opening branches and machines within the nine-month licensing period, and not providing an explanation when requested for renewal about the reasons that prevented the bank from opening the branch or installing the ATM.

And since the banks' adherence to these procedures constitutes a clear violation to The Banking Control Law in accordance with the current applicable regulations in this regard, we hope that you will inform your relevant specialists about the necessity to follow and adhere to the following instructions:

a) No bank may open new branches, other offices, or ATMs in any region of the Kingdom without first obtaining an official prior license from SAMA.

b) When the bank obtains a license from SAMA to open a branch or install an ATM, it is not permissible to relocating it from one location to another without obtaining written approval from SAMA. This applies whether the branch is operational or non-operational, or whether the ATM machine is operational or non-operational.

c) When the bank obtains approval from SAMA to open a branch at any location, installing an ATM at the branch is covered under the branch's license. There is no need to obtain a separate license for the ATM, however SAMA must be informed about it.

d) The license for an independent ATM (outside branch premises) cannot be merged with any branch, regardless of whether it is operational or non-operational.

e) The duration of the license is nine months from the date of approval issuance, and the bank must follow up to complete the opening within this period. If the opening cannot be completed within this time frame, the bank must inform SAMA of the reasons that led to this before expiry of the license period.

f) The licenses for non-operating branches are extended every six months to provide the bank with the opportunity to prepare the site.

g) The bank must provide SAMA at the end of every six months with a report that includes its position regarding the opening of branches or the installation of ATMs.

c) Every bank must attach the following information when requesting approval to open a branch or install an ATM:

- Feasibility study for opening a branch or installing an ATM.

- A sketch drawing showing the exact location of the desired branch or the ATM.

t) SAMA must be notified of the actual opening date of the branch and the commencement of its operations or the date the ATM becomes operational.