2.4 Account Opening Requirements
For prepaid accounts issued in the Kingdom, the opening of accounts must be in compliance with the current version of “Rules Governing the Opening of Bank Accounts & General Operational Guidelines in Saudi Arabia” issued by SAMA or with the rules defined in sections 2.4.1, 2.4.2, 2.4.3, 2.4.4 .
For closed loop prepaid payment products not requiring KYC the account opening rules are defined in section 2.4.5.
2.4.1 Rules for Opening Prepaid Electronic Records where the Contracting Entity is an Individual
For prepaid payment products where the contracting entity is an individual and where the prepaid payment product is not using a simpler form of KYC the said individual shall be the person for whom the bank will need to identify the required information pertinent to doing financial business with them as a customer for KYC purposes. The individual will also be the person against which the required transaction monitoring of KYC, AML and CTF are applied.
Included within these are all consumer prepaid payment services where the contracting entity is an individual. This includes personal payment service products with a single payment device attached, as well as payment service products with sub-records such as youth cards. Specifically for payment service products for minors less than 18 years old the requirements set out in "Rules Governing the Opening of Bank Accounts & General Operational Guidelines in Saudi Arabia", section 200-1-1 “Minors of less than 18 years' old" apply.
For such a payment service product the following conditions shall apply;
1- A master account shall be opened under the name of the contracting entity.
2- Electronic record or ‘sub-records’ (sub-accounts of the master account) shall be opened for every payment service product issued.
3- Such payment service product shall be branded for use at SPAN access points.
4- Sub-records’ (card accounts) shall not be allowed to accept cash deposits or any credit entries other than the amounts transferred thereto from the master account of the contracting entity.
5- No monthly statements shall be required for issue for such sub-record customers (sponsored cardholders) unless specifically requested by the contracting entity. Instead, the cardholder can get an ATM-generated brief transaction statement.
6- The signature specimens of the customers of such sub-records shall not be entered into the issuer's computer system.
7- The contracting entity shall provide the issuer with completed application forms and copies of the personal documents of sponsored cardholders under its sponsorship and acknowledge that payment services are to be provided to them under its responsibility.
8- Transactions of such prepaid payment services shall be limited to:
- Depositing of funds can only be made by the contracting entity
- Withdrawing (via ATM and PoS)
- POS purchase
- Payment of bills via SADAD
- Remittance outside of the Kingdom by the primary cardholder’s membership of a remittance service if included in the contracted payment services agreed with the contracting entity
9- Such cards shall be delivered to concerned sponsored cardholders by the contracting entity, and personal identification numbers (PIN’s) of the cards shall be delivered by the issuer (the issuer branches or representative) to the primary cardholder under a written form to be kept in the master account file.
10- A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued from time-to-time by the SPAN scheme.
11- Card expiry is to be within 3 years of issue, Card expiry can be extended for certain categories (i.e. Student cards) subject to SAMA approval.
12- For payroll cards:
- Once the cardholders valid Government issued identity card has expired the card has to be stopped.
- The issuer shall provide necessary technical support and make available sufficient ATM access to serve the above-mentioned customers as near as possible to their work locations.
All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.
2.4.2 Rules for Opening Prepaid Electronic Records where the Contracting Entity a Juristic Person
For prepaid electronic records where the contracting entity is a juristic person and where the prepaid electronic records is not using a simpler form of KYC, the individual(s) who will be provided the payment service product shall be the person for whom the issuer will need to identify the required information pertinent to doing financial business with them as a customer for KYC purposes. The individual will also be the person against which the required transaction monitoring of KYC, AML and CTF are applied.
Included within these are all commercial prepaid payment services where the contracting entity is a Juristic person. This includes salary payment service products, prepaid procurement cards (petty cash payment products) with a single payment device attached, as well as payment service products with sub-records.
Specifically account opening procedures must be compliant with section 300 of the 'Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia’ as issued by SAMA.
For the opening of accounts of prepaid payment service products where the contracting entity is a Juristic person the following conditions shall apply;
1- A master account shall be opened under the name of the Juristic person for each payment service product contracted by the contracting entity.
2- Electronic record or ‘sub-records’ (sub-accounts of the master account) shall be opened for every payment service device.
3- Such payment service product shall be branded for use at SPAN access points.
4- Sub-records’ (the payment device accounts) shall not be allowed to accept cash deposits or any credit entries other than the amounts transferred thereto from the master account of the contracting entity.
5- No monthly statements shall be required for issue for such sub-record customers (the cardholder) unless specifically requested by the sub-record customer. Instead, the cardholder can get an ATM-generated brief transaction statement.
6- The signature specimens of the customers of such sub-records shall not be entered into the issuer's computer system.
7- (a) The contracting entity shall provide the issuer with completed application forms and copies of the personal documents of its personnel and/or beneficiaries to which payment services are to be provided indicating that they are checked and found valid and identical to their respective originals, that the listed personnel and/or beneficiaries work under its sponsorship and/or that they are under its responsibility. The contracting entity must be compliant with all applicable rules.
OR
(b) The contracting entity shall provide the issuer with a list of the relevant ID numbers of their employees and/or beneficiaries sourced from their valid government identification (e.g. Iqama number). The issuer representative shall source the relevant employee and/or beneficiaries’ information by reference to the Ministry of Interior data held at the National Information Centre and produce the employee and/or beneficiary sub-record application form for later signature by the employee and/or beneficiaries (refer to xii below).
8- The authorized representatives of the issuer shall review the originals of the valid government identification of the cardholder and attest the authenticity of the provided copies attached to the applications of opening the sub-records.
9- A form of opening a sub-record or card account for each employee and/or beneficiary shall be signed by the employee and/or beneficiary (only).
10- No such an individual employee and beneficiary may have more than one sub-record per payment service agreement with the contracting entity.
11- Transactions of the records of such cards shall be limited to:
- Withdrawing (via ATM and/or POS) the amount(s) of the salary and/or other amounts payable to the card holder.
- PoS purchase.
- Remittance outside of the Kingdom by the employee’s membership of a remittance service if included in the contracted payment services agreed with the contracting entity
- Payment of bills via SADAD if included in the contracted payment services agreed with the contracting entity
- For payroll cards only: Transfer from card record to employee’s own current account, in the case of the current account being in the same issuer if included in the contracted payment services agreed with the contracting entity.
12- Such cards can be delivered to concerned employees/beneficiary by juristic person whereas personal identification numbers (PIN’s) of the cards must be delivered by the issuer (the issuer branches or representative) for the primary cardholder under a written form to be kept in the master account file.
13- A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued from time-to-time by the SPAN scheme.
14- Card expiry is to be within 3 years of issue.
15- For payroll cards:
- Once the cardholders valid Government issued identity card has expired the card has to be stopped.
- The issuer shall provide necessary technical support and make available sufficient ATM access to serve the above-mentioned customers as near as possible to their work locations.
16- The above-mentioned service shall be rendered to eligible Juristic persons having a relationship with the issuer.
17- All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.
2.4.3 Rules for Opening Prepaid Electronic Records where the Contracting Entity is a Government Agency
For prepaid electronic records where the contracting entity is government agency and where the prepaid electronic record is not using a simpler form of KYC, the individual(s) who will be provided the payment service product shall be the person for whom the issuer will need to identify the required information pertinent to doing financial business with them as a customer for KYC purposes. The individual will also be the person against which the required transaction monitoring of KYC, AML and CTF are applied.
Included within these are all commercial prepaid payment services where the contracting entity is a government agency. This includes salary payment service products, prepaid procurement cards (petty cash payment products) with a single payment device attached, as well as payment service products with sub-records.
Specifically account opening procedures must be compliant with the following clauses (Section 500-1-1, sub-clauses 1, 2, 3 and 7 & Section 500-2) of the 'Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia’ as issued by SAMA.
In addition to the rules laid out in the above, for a prepaid payment product opened under these rules the account terms and conditions must specify the withdrawal functionality and/or value threshold (via POS and/or ATM), as agreed with the Government entity.
For the opening of accounts of prepaid payment service products where the contracting entity is government agency the following conditions shall apply;
1- A master account shall be opened under the name of the government agency for each payment service product contracted by the contracting entity.
2- Electronic record or ‘sub-records’ (sub-accounts of the master account) shall be opened for every payment service device.
3- Such payment service product shall be branded for use at SPAN access points.
4- With the exception of Student card, Sub-records’ (the payment device accounts) shall not be allowed to accept any credit entries other than the amounts transferred thereto from the master account of the contracting entity.
5- No monthly statements shall be required for issue for such sub-record customers (the cardholder) unless specifically requested by the sub-record customer. Instead, the cardholder can get an ATM-generated brief transaction statement.
6- The signature specimens of the customers of such sub-records shall not be entered into the issuer's computer system.
7- (a) The contracting entity shall provide the issuer with completed application forms and copies of the personal documents of its personnel or beneficiaries to which payment services are to be provided indicating that they are checked and found valid and identical to their respective originals, that the listed personnel work under its sponsorship and/or that they are under its responsibility. The contracting entity must be compliant with all applicable rules.
OR
(b) The contracting entity shall provide the issuer with a list of the relevant ID numbers of their employees and/or beneficiaries sourced from their valid government identification. The issuer representative shall source the relevant employee and/or beneficiaries’ information by reference to the Ministry of Interior data held at the National Information Centre and produce the employee sub-record application form for later signature by the employee (see xii below).
8- The authorized representatives of the issuer shall review the originals of the valid government identification of the cardholder and attest the authenticity of the provided copies attached to the applications of opening the sub-records.
9- A form of opening a sub-record or card accounts for each employee/beneficial shall be signed by the employee/beneficial (only).
10- No such an individual employee may have more than one employee/beneficial sub-record per payment service agreement with the contracting entity.
11- Transactions of the records of such cards shall be limited to:
- Withdrawing (via ATM and/or POS) the amount(s) of the salary and/or other amounts payable to the card holder.
- PoS purchase
- Remittance outside of the Kingdom by the employee’s/beneficiaries membership of a remittance service if included in the contracted payment services agreed with the contracting entity
- Payment of bills via SADAD if included in the contracted payment services agreed with the contracting entity
- For payroll cards only: Transfer from card record to employee’s own current account, in the case of the current account being in the same issuer if included in the contracted payment services agreed with the contracting entity.
12- Such cards can be delivered to concerned employees/beneficiaries by the Government Entity, whereas personal identification numbers (PIN’s) of the cards must be delivered by the issuer (the issuer branches or representative) for the card holder under a written form to be kept in the master account file.
13- A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued from time-to-time by the SPAN scheme.
14- Card expiry is to be within 3 years of issue, Card expiry can be extended for certain categories (i.e. Student cards) subject to SAMA Approval.
15- For payroll cards:
- Once the cardholders valid Government issued identity card has expired the card has to be stopped.
- The issuer shall provide necessary technical support and make available sufficient ATM access to serve the customers as near as possible to their work locations.
16- The above-mentioned service shall be rendered to the government agencies that have a relationship with the issuer.
17- All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.
2.4.4 Rules for Opening Prepaid Electronic Records where the Contracting Entity is a Householder
For prepaid payment products where the contracting entity is an individual householder and the contracting entity has satisfied the normal SAMA Account Opening and KYC requirements, as identified at 2.4.1. The contracting entity will also be the person against which the required transaction monitoring of KYC, AML and CTF obligations are applied.
Included within these are all retail prepaid payment services where the contracting entity is a householder who offers payments cards to household members, for the purpose of effecting purchase payments and cash withdrawals using a SPAN debit card drawn on monies for which the contracting entity is the beneficial owner.
Such household members shall be either:
- A family member (e.g. wife, son) or have a legal relationship with the contracting entity (e.g. legal guardian).
- A contracted employment relationship, where the cardholder is under the sponsorship of the contracting entity.
For such a payment service product the following conditions shall apply;
1- A master account shall be opened under the name of the contracting entity which is directly related to the bank account of the contracting entity.
2- Electronic record or ‘sub-records’ (subaccounts of the master account) shall be opened for every payment service product issued.
3- Such payment service product shall be branded for use at SPAN access points only.
4- Sub-records’ (card accounts) shall not be allowed to accept cash deposits or any credit entries other than the amounts transferred thereto from the master account of the contracting entity.
5- Sub-records credits shall not exceed a cumulative maximum of SAR 13,000 in any twelve month period.
6- No monthly statements shall be required for issue for such sub-record customers (cardholders) unless specifically requested by the contracting entity. Instead, the cardholder can get an ATM-generated brief transaction statement.
7- The cardholder shall not be required to be subjected to the standard KYC requirements.
8- The contracting entity shall remain liable and responsible for all transactions effected by the cardholder as evidenced through the sub-record.
9- The householder has to provide the issuer with completed application details and the National Identification Number for cardholders which have to be validated by the issuer.
10- In the event of a change of cardholder the contracting entity has to submit the National Identification number of the new cardholder in line with condition ix.
11- Transactions of such prepaid payment services shall be limited to:
- Domestic withdrawals (via ATM and PoS purchase)
- POS purchase
- Transfers to and from the prepaid payment service record to the contracting entity's own current account.
12- Issuers will issue cards and personal identification numbers (PIN’s) to the contracting entity for delivery to cardholders (e.g. Household members).
13- Once the cardholders valid Government issued identity card has expired the card has to be stopped.
14- A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued by the SPAN scheme.
15- Card expiry is to be within 3 years of issue.
16- All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.
2.4.5 Rules for Opening Prepaid Electronic Records that Use a simpler form of KYC
For Prepaid Payment Electronic Records that uses a simpler form of KYC the following applies:
1- A master account shall be opened under the name of the contracting entity.
2- Electronic record or ‘sub-records’ (subaccounts of the master account) shall be opened for every card issued in the programme.
3- Such card can be:
a) used within a closed or restricted loop arrangement different from SPAN access points
b) used at specified SPAN access points.
4- Sub-records’ (the card accounts) shall not be allowed to accept cash deposits or any credit entries other than at the issuance of the card.
5- No statements shall be required for issue. Instead, the cardholder can request a balance enquiry at participating merchant outlets.
6- No signature specimens of the customers are required to be obtained.
7- Transactions facilitated through such cards shall be limited to PoS purchase (excluding cash back option) up to the amount deposited in the card record at the time of activation of the card.
8- A special design shall be adopted for the above-mentioned cards which is different from the design specification for SPAN Prepaid cards. The card will not carry the SPAN Logo
9- Card expiry is to be within 2 years of issue.
10- The above-mentioned service shall be rendered to eligible entities having a relationship with the issuer.
11- Such accounts must be open under the approval of the compliance officer at the bank according to procedures set by the bank based on its customer categorization process.
12- All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.