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  • Miscellaneous Regulations (ME)

    • Transport of Currency

      • Penalties Regarding Violations of the Law on Transporting Money, Precious Metals, and Negotiable Instruments

        Referring to the letter from the General Director of Public Security No. 3/2416/3 dated 24/2/1436H, which refers to the Law of Transporting Money, Precious Metals, and Negotiable Instruments issued by the Royal Decree No. (M/81) dated 18/10/1428H and its Implementing Regulations issued by Ministerial Resolution No. (4814) dated 9/10/1433H. The system establishes a joint relationship between Public Security as the security authority and SAMA as the technical authority for monitoring the performance of companies and institutions engaged in cash transportation.

        We would like to inform you that violations of the cash transportation law, which may be committed by contracted companies during the execution of their assigned tasks, have been identified, and an attached list has been circulated to regional police departments to monitor the performance of these companies and track violations of law regulations and instructions.

        Therefore, SAMA requests that all banks operating within the Kingdom take all necessary measures to ensure compliance with the Transporting Money, Precious Metals, and Negotiable Instruments Law and its Implementing Regulations when contracting and renewing contracts with the entrusted companies. This also applies within the bank premises. It is essential to ensure that the contracted companies adhere to these regulations. In case of any violations or observations, they should be documented and sent to SAMA as soon as possible.

         

                 ((Violations of Transporting Money, Precious Metals, and Negotiable Instruments Law))

        • Failure to check the background of the person who will occupy the position of Security Director.
        • Employing a non-Saudi national in the vehicle crew.
        • Employing someone under 25 or over 50 years old.
        • Employing someone with less than a high school qualification in the vehicle crew.
        • Failure to check the background of the transport crew during hiring.
        • Failure to conduct medical examinations.
        •  Failure to obtain a training certificate.
        • Negligence in safeguarding the transported items.
        • Parking the transport vehicle inside or outside the city in unauthorized locations.
        • Allowing a cash transport vehicle to operate with fewer than three people.
        • Failure to arm the transport vehicle crew (driver and guard) according to the weapons and ammunition regulations.
        • Using the transport vehicle before obtaining a registration form from the General Traffic Department to confirm its armoring and compliance with specifications.
        • Performing armoring operations or importing armored vehicles before receiving approval from Public Security.
        •  Expanding the transport fleet to more than 300 vehicles without approval from Public Security.
        • Importing, manufacturing, or modifying any armored vehicle and operating it for cash transport without prior approval from the Ministry of Interior.
        • Failure to armor the vehicle or using armoring that does not meet the system's specified standards and measurements.
        • Failure to establish a dedicated security and cash transport department.
        • Operating with an expired license.
        • Adding a partner after obtaining the license without applying for approval from Public Security and the Ministry.
        • Operating outside the areas specified in the license.
        • Failure to obtain an insurance policy covering all transported items.
        • Failure to inform the operations rooms about transport operations exceeding 500,000 SAR.
        • Failure to follow the proposed and designated route for the cash transport vehicle.
        • Delivering cash outside the official working hours of banks and exchange offices.
        • Failure to install a satellite vehicle tracking system with mandatory stopping features or assign an accompanying escort vehicle.
        • Stopping the cash transport vehicle at any site or place for any reason.
        • Failure to inform the regional police about any contract specifying the beneficiary entity.
        • Failure to apply the approved regulations for air, sea, and land transport.
        • Non-cooperation of cash transport companies with security personnel authorized to inspect at any time.
        • Employing a non-Saudi or someone under 25 years old or without a university degree as a Security Director.
        • Using vehicles that are not equipped or not licensed for the transport process.
        • Using the transport vehicle for purposes other than its intended use.
        • Selling armored vehicles before obtaining approval from Public Security.
        • Selling a cash transport vehicle to an entity not licensed to practice the activity.
        • Failure to adhere to the uniform specified in the instruction manual for private companies and institutions.
        • Requiring the security guard to pay for clothing and training costs.
        •  Failure to place a badge on the guard’s chest that displays his personal information and the company to which he belongs.


        *According to SAMA's circular No. 371000035015 dated 24/03/1437H, the Compliance Department of the bank is tasked with reporting violations of the Transporting Money, Precious Metals, and Negotiable Instruments Law on a monthly basis and sending them to the Cash Centers Supervision Division at SAMA.

        *According to SAMA's circular No. 381000063640 dated 14/06/1438H, any violation committed by a cash transportation company or institution within the bank must be reported to the Security Patrols Operations Room. Upon the arrival of the patrol to address the report, an original notification (report) along with two copies must be handed over, specifying the time of the report and the time the patrol addressed the situation. This is to ensure the violation is recorded by the security patrols to initiate legal and regulatory procedures in accordance with the Transporting Money, Precious Metals, and Negotiable Instruments Law, according to the attached template.

    • Emphasis on the Readiness of Locations and Full Operational Capacity of Exchange Centers During the Hajj Season of 1445 AH

      Based on paragraph (C) of Article Five of the Regulations governing the practice of money exchange issued by the Minister of Finance Decision No. (4686) dated 21/11/1441 AH, which states, "It is the responsibility of the exchange center’s management to ensure compliance with these regulations, and each center’s management must approve policies, procedures, and operations that ensure adherence to the instructions issued by the Central Bank," and following Central Bank Circular No. 45052096 dated 11/08/1445 AH regarding raising the level of preparedness and readiness of exchange centers during the Ramadan and Hajj seasons of 1445 AH.

      Therefore, the Central Bank confirms that exchange centers located in Mecca, Medina, King Abdulaziz International Airport, and the Hajj City in Jeddah must comply with the points outlined in Annex No. (1) as a minimum requirement.

      #Annex No. (1)
      1Compliance with the regulations governing the practice of money exchange and related circulars.
      2Operate at full capacity by activating all exchange counters during the season.
      3Provide all denominations of Saudi Riyals in a timely manner, suitable for the density of pilgrims during the season.
      4Ensure adequate cash availability to provide service throughout the season and during Eid al-Adha.
      5Extend center operating hours to suitable days and times during the Hajj season and Eid al-Adha.
      6

      Prevent customer congestion inside and outside the premises by implementing the following minimum measures (with a designated staff member to monitor and ensure this):

      1. Provide and activate customer management pathways.
      2.  Provide and activate customer management devices.
      3. Provide and activate customer management devices.
      7Adhere to regulations and instructions regarding the restriction of all operational roles to Saudi nationals.
      8Display currency exchange rates in a prominent location.
      9Update currency exchange rate screens by connecting them directly to the system.
      10Issue receipts for all transactions and provide customers with a copy
      11Place clear boards and signs for the public to indicate customer rights
      12Provide point-of-sale services, along with a sticker indicating the availability of electronic payment services for customers wishing to use it
      13Ensure that surveillance cameras and storage units are functioning effectively
      14Provide a sufficient number of security personnel.
      15Adhere to regulations and instructions regarding the movement of cash and comply with cash transport operating hours.
      16Provide modern cash counting and sorting machines that effectively detect counterfeit currency and follow necessary procedures for dealing with counterfeit money.
      17Add the geographical location of the center on Google Maps, and display the center's name in both Arabic and English.
      18Commit to disseminating the awareness and guidance materials from the Ministry of Hajj and Umrah directed at the guests of Allah.
      19Report to security authorities any cases of currency exchange conducted at unauthorized outlets and notify the Central Bank accordingly.

    • Circular to Money Transfer to Provide Point of Sale (POS) Services to Customers


      Based on Paragraph (B) of Article Fourteen of the rules regulating money changing business by Ministerial Decision No. (4686) dated 21/11/1441 H, and in line with SAMA's ongoing efforts to develop the money exchange sector in the Kingdom, a standardized pricing model has been developed for point-of-sale (POS) services for transactions made via Mada cards at money changers.

      We would like to emphasize that all money changers must provide point-of-sale (POS) services and activate it as of its date for the benefit of customers. Failure to comply with and adhere to these regulations and instructions will result in SAMA implementing statutory penalties.

    • Inquiry from Several Exchange Centers on Including the Son/Daughter of a Saudi Citizen in Saudization Count

      Further to SAMA Circular No. 21755/41 dated 06/04/1440 H, which restricts all positions in the exchange centers to Saudi citizens and emphasizes the need to train Saudi employees through programs appropriate to the nature of their work, provided that the time period for Saudization of all jobs does not exceed one year from its date, and based on the inquiries received by SAMA regarding the inclusion of son/daughter of Saudi Citizen in Saudization based on the Ministry of Labor and Social Development’s decision.

      Please be informed that categories treated as Saudis for Saudization purposes should be counted accordingly, as per the regulations issued by the Ministry of Labor and Social Development. This information must be disclosed in the data submitted to SAMA. Exchange centers are required to ensure compliance with and verification of the guidelines issued by the Ministry of Labor and Social Development in this regard.
       

    • Mechanism for Compensating Damaged Cash Marked with Security Inks

      No: 41025174 Date(g): 9/12/2019 | Date(h): 12/4/1441Status: In-Force

      Translated Document

      Further to the instructions of SAMA communicated under Circular No. 53506/198 dated 13/04/1440H regarding the mandatory use of secure cash transport containers by cash transport companies, banks, and currency exchangers during the receipt and delivery of cash from branches, cash centers, remittance centers, currency exchangers, and the retail sector, and in light of SAMA's commitment to encouraging developments in the financial sector and enhancing security and integrity measures,

      You will find the regulations and procedures for compensating Saudi currency marked with security inks due to technical and human errors, along with the related forms.

      For your review and implementation effective immediately. The central bank will conduct field visits to verify compliance with these instructions.

      • Regulations and Procedures for Compensating Saudi Currency Marked with Security Inks Due to Technical and Human Errors

        1. Beneficiary entities must ensure that security cash containers comply with the technical specifications approved in SAMA's Circular No. 53506/198 dated 13/04/1440H which mandates that cash transport companies, banks, and currency exchange offices must use security containers for transporting cash during the receiving and delivery processes from branches, cash centers, remittance services, currency exchange offices, and the retail sector.
           
        2. The trading of banknotes marked with security ink is strictly prohibited.
           
        3. Ink-stained banknotes must be presented directly to a SAMA branch for evaluation and compensation processing. This submission must be accompanied by the completion of the compensation request and the declaration form below.
           
        4. Ensure that cash counting, sorting, depositing machines, and self-service devices are capable of detecting and rejecting ink-stained banknotes.
           
        5. Train cash-handling staff to identify and detect banknotes marked with security ink.
           
        6. Ink-stained banknotes must not be included in bank deposits made to SAMA’s branches. A fine will be imposed for each ink-stained banknote found in the bank's deposit, in accordance with Article 23 of the Banking Control Law.
           
        7. The bank requesting compensation will bear the operational costs for compensating ink-stained banknotes for any cases where negligence and failure to adhere to security protocols are proven.
           
        8. The bank is responsible for ensuring that ink-stained banknotes are not accepted and must immediately notify SAMA and the relevant security authorities. Additionally, they must complete the forms below. The bank is also accountable for any failure by its cash transport contractor to comply with these instructions.

      • Forms

        • Form (1-1): Request for Compensation of Currency Marked with Security Ink

          Name of the Beneficiary/Agent Reviewer     ..........................................Name of Authorized Person.............................................
          ID Number                   ..........................................Phone Number.............................................
           Mobile phone number..........................................                               Email Address.............................................
          P.O. Box ..................................Postal Code ..................................City ........................................
          Agency Number, Date, and Issuing Authority   ...................................................................................................................................................
          Notes: The ink-stained currency must be dry and organized by denomination, with each bundle containing 100 notes of the same denomination.
           
          User  .............................        Currency Protection Device Manufacturer ..............................   Serial Number  ..................................
          Denomination    ...........................................Number of Banknotes..............................................
          The amount in letters    ..................................................................................................................
          Reasons for Currency Damage Requiring Compensation:
          O   Attempted Theft O   Misuse of Cash Transport Bag
          O   Technical ReasonsO   Other
          Required Attachments:
          O   Report/Certificate from Civil DefenseO   Report/Certificate from Police
          O   Power of AttorneyO   Declaration for Currency Requested for    Compensation
          O   Any Supporting Video/Photos – if available
          I request that the compensation amount decided by the Compensation Committee be transferred to
          IBAN Bank Account Number..................................................................................................................
          Bank:..................................................................................................................
          Other Method..................................................................................................................
          Beneficiary/Agent Name................................Signature................................

          Name and Signature of Cashier

          Name and Signature of Operations Head

          ...........................................................................

          ...........................................................................

          Automated System Transaction Number:  .......................................................................................................................................

          Branch/Central Treasury Procedure After Committee Approval of Compensation Amount

          Amount Paid to Beneficiary

          O   Transfer to AccountO   Other
          Automated Transaction Number    .........................................................................................................................
          Name and Signature of the Treasurer  ..................................................................................................................
          The procedure at the branch/center's treasury after one financial year from the approval of the compensated amount due to the inability to contact the beneficiary....
          Transaction Number from the Automated System: ..................................................................................................................
          Recipient of the Form from the Banking Services Division.................................................................................................................
          Name         ....................................Signature....................................

        • Form (1-2): Declaration for Currency Requiring Compensation

          Reviewer Information

          Name of Reviewer: ...................................................................................  ID Number: .........................................................

          Mobile Number: .............................................................  Employer: .............................................................................

           

          Review Location: SAMA Branch in the City of...............................................

          Review Date: Day                                                                           Corresponding to ___ / ___ / 14__H

          I, hereby certify .................................................................................................................................................
           that the details of the cash amount requested for compensation are accurate as outlined below

          Source of Cash : .................................................................................................................

          Ownership of Cash: ..............................................................................................................

          Reported Amount: ..............................................................................................................

          Denominations: ............................................................................................................................

          Reason for Damage: ..................................................................................................................

          I also acknowledge that intentionally damaging Saudi currency is punishable. If it is proven that the currency listed above was intentionally damaged, compensation will not be provided. Additionally, if any counterfeit currency is detected, the relevant counterfeit currency laws and regulations will be applied.

          Reviewer Name: .................................................................        Signature: .......................................................................

          For Treasury Division Use (Branch):

          Authorized Person's Name: ..................................................................................

          Authorized Person's Position: ...............................................................................

          Signature: ........................................................................................

        • Form (3-1): Report or Record of Currency Marked with Security Ink

          Date

           143H/    /  

          		Corresponding to 

            /   /  20 G 

          		Issue Number 
          Obtaining the currency marked throughReport Seizure 
          Place of obtaining the marked currencyBank StorePolicePolice StationIndividualOther
                 

           

          Person Submitting the currency

          First Name

          Father

          Grandfather 

          Family 

          Place of Birth

          Country

          		Nationality

           

           

           

          		 
          Identity

          Type

          Number

          Date

          		Source

           

           

           

          		 
          Gender

          Male

          Female

          Marital Status

          Education

          		Occupation

           

           

           

          		 
          Address

          Work

           

          Phone

          		 

          Residence

           

          Phone

          		 
          Sponsor

          Name

           

          Phone

          		 

          Address

           

          Phone

          		 

           

          Description of Currency Marked with Security Inks

          Currency Type

          Denomination

          Quantity

          Serial Number

              
              
              
              

           

          Receiver of Report

                   

          Reporter

          Name

          Job Title

          Rank

           

          Name

          Signature

           

           

           

           

           

           

          Signature  Fingerprint

           

           

           

           

          Copy / For case file.

          Copy / For General Security / Criminal Security / Criminal Investigation Department.

          Copy / For SAMA Authority, Currency Department.

           

    • Exempting Customers of Money Exchange Center Branches at Airports Traveling Outside the Kingdom only from Presenting the National ID

      Further to the Guide to Organize Operational Procedures for Money Exchange Centers issued by SAMA in February 2015 regarding customer acceptance policies and procedures for verifying national ID.

      We inform you that SAMA has received a letter from His Royal Highness the Minister of Interior, No. 199974 dated 10/09/1440H, which includes approval to exempt customers of money exchange centers at airports who are traveling outside the Kingdom from providing their national ID for transactions. Instead, they may present their passport and boarding pass, which should be matched with the customer’s name.

       

    • Saudization of the Jobs of Money Exchangers of Class A and B

      Based on the powers granted to SAMA under paragraph (C) of Article Fifteen of The rules governing money changing business issued by Ministerial Decision No. (1357) dated 01/05/1432 H, which states that "The Central Bank may issue any instructions deemed necessary for implementing supervisory and regulatory requirements on money exchange activities".

      In order to achieve the objectives of the kingdom's Vision 2030, SAMA emphasizes that all positions in the exchange sector must be restricted to Saudi citizens. It is essential to train Saudi employees and enroll them in training programs suitable for their roles. Money exchange institutions and companies must immediately start implementing the necessary measures to ensure full compliance with this circular and provide us with a Saudization plan for all positions within two weeks from the date of this notice. The complete Saudization of all positions must be achieved within one year from this date. Please note that SAMA will take all necessary regulatory actions against institutions and companies that do not comply with these requirements.

    • Update of Certain Procedures for the Transactions of Exchange Institutions and Companies

      Based on paragraph (c) of Article 15 of the Rules Governing Money Changing Business-1432 issued by the Minister of Finance's Resolution No. 1357 dated 01/05/1432H, which grants SAMA the authority to issue any instructions deemed necessary to implement supervisory and regulatory requirements for money exchange operations.

      In line with SAMA’s continuous efforts to develop the money exchange sector in the Kingdom and update certain procedures related to the transaction of money exchange institutions and companies, SAMA wishes to emphasize full compliance with the provisions of the rules governing money changing business, as well as all related laws and instructions, and adherence to the following:

      1. Retention of CCTV surveillance recordings for a minimum of one year (12 months).
         
      2. Allowing customers (account holders), after verifying the necessary legal documents, to obtain account statements detailing executed transactions upon request.
         
      3. Retaining all documents and records related to customer transactions (whether originals or copies) in a secure place for at least ten years from the date of the transaction, with electronic archiving for easy access when needed.
         
      4. Recording the residential or national address upon establishing the relationship.
         
      5. Prohibiting the deletion of any transaction or account, ensuring that all details remain accessible through the automated system.
         
      6. Establishing business continuity plans and ensuring the readiness of backup sites (Disaster Recovery), with periodic effectiveness testing to ensure the plan can be executed without difficulties, to maintain efficient and effective transactions.

      SAMA emphasizes that money exchange companies and institutions must immediately begin taking the necessary measures to ensure full compliance with the provisions of this circular within four months. SAMA will take all legal actions against non-compliant  money exchange companies and institutions that fail to meet the requirements outlined in this circular.

    • Prohibition on Licensed Exchange Dealers from Engaging with Unlicensed Practitioners

      The central bank has learned that some licensed exchange dealers are engaging with unlicensed practitioners in various forms and conducting currency import transactions on behalf of those unlicensed. Given the risks associated with such practices, the central bank requests that everyone refrain from dealing with unlicensed practitioners in any capacity. Continuing to engage with any such individuals in any manner will result in the revocation of the license issued by the central bank, in addition to facing penalties outlined in the decision of His Excellency the Minister of Finance and National Economy No. 920/3, dated 16/02/1402 AH.

      Therefore, we hope that everyone will adhere to the instructions.

    • Operating Rules for Exchange Activities -Provide SAMA with a Monthly Statement of Cash Inflows and Outflows Through Land Ports

      Based on the provisions of paragraph (a) of Article 15 of The rules governing money changing business issued by the Minister of Finance's Resolution No. 1357 dated 01/05/1432H, which stipulates that anyone licensed to practice currency exchange must provide SAMA with all the data it requests at any time, and paragraph (c) of the same article, which grants SAMA the authority to issue any instructions it deems necessary to implement supervisory and regulatory requirements for currency exchange transactions. Furthermore, Article 17 states that every exchange institution must maintain regular accounting records documenting its transactions in accordance with the requirements set by SAMA and must follow the accounting standards specified when preparing its financial statements. The exchange institution must also provide SAMA with the financial data mentioned in the article, and SAMA may request any other information or data it deems necessary to verify the soundness of its transactions and compliance with these regulations.

      Therefore, you are hereby informed that all exchange institutions must submit monthly data to SAMA regarding the movement of cash inflows and outflows to and from the Kingdom through border crossings (land, air, and sea), in accordance with the attached statement.

       

      Company/Institution: .............................. (Currency Exchange License No.: ........./S)

      Statement of Cash Inflows and Outflows Through the Border Crossings in the Kingdom
       

       

      No.

      Transaction Type (Inflow-Outflow)

      Date

      Border Crossing Name

      Currency Name

      Foreign Currency

      Amount in Riyals

      Source (Bank or Sending Exchange Institution)

              
              
              
              
              
              
              
              
              
              
              
              
              

       

      Please review Section Six of the regulations governing the practice of currency exchange activities regarding data and reports.

    • Use of Saudi Traveler's Checks

      In order to serve and develop the Saudi economy, and to promote the Saudi Traveler's Checks Company as a national entity established with the approval of the central bank and under its supervision for the purpose of issuing traveler’s checks in Saudi riyals within the Kingdom, it is noteworthy that the checks issued provide numerous services and conveniences for citizens, residents, travelers, and pilgrims.

      The central bank hopes for your cooperation in encouraging the use of these checks by facilitating their sale and purchase, and ensuring their cashing when presented to you. Acceptance of these checks as a substitute for cash aligns with the provisions of Article Three of His Excellency the Minister of Finance and National Economy's Decision No. 3/920, dated 16/02/1402 AH, regarding the regulation of exchange transactions.

      We also hope you will confirm receipt of this circular and disseminate it to your branches operating in the Kingdom for implementation.

       

    • Urging to Study the Opening of Additional Branches to Engage in the Activity of Buying and Selling Foreign Currencies and Trading them

      Based on paragraph (c) of Article II of the Rules Regulating Money Changing Business issued by the decision of His Excellency the Minister of Finance No. (4686) dated 21/11/1441 H, which stipulated that one of the objectives of these rules is to expand the spread of Money Changing Business, facilitate its provision, and enhance financial inclusion, and paragraph (a) of Article Twenty-Three, which stipulates that "The Money Changer shall obtain SAMA’s non-objection before Opening a branch or more to practice Money Changing Business, and in this case, the non-objection is limited to the Money Changers that take the form of a company or a branch of a foreign money changer." Based on SAMA's supervisory and regulatory role over financial institutions, and in continuation of its efforts to contribute to achieving the content of Saudi Vision 2030, regarding the expansion of the provision of Hajj and Umrah services. 

      Accordingly, SAMA hopes that money changers in the form of a company will study the opening of additional branches to engage in the activity of buying and selling foreign currencies and trading them inside the Kingdom in the central areas of the Two Holy Mosques, King Abdulaziz International Airport in Jeddah and Prince Mohammed bin Abdulaziz International Airport in Madinah, as required by the public interest in serving pilgrims and Umrah performers.