Intended Explanation of Private Bank Document as Referred in Article # 4 of Anti-Counterfeiting Rules
No: 201000000158 Date(g): 22/6/1999 | Date(h): 9/3/1420 Translated Document
SAMA has received a letter from His Excellency the Minister of Finance and National Economy No. 9890/3 dated 5/9/1419H, referring to a letter from His Excellency the Chairman of the Oversight and Investigation Commission No. 136/Kh dated 1/9/1419H, requesting clarification on the term "Bank-Related Documents" as mentioned in Article 4 of the Anti-Forgery Law.
Accordingly, SAMA addressed His Excellency the Minister of Finance and National Economy in a letter No. 2105 MD/MA dated 20/11/1419H, clarifying that the legislator of the Anti-Forgery Law*, by using the phrase "Bank-Related Documents" in the plural form at the beginning of Article 4, intended to cover all documents bearing the name and logo of a bank, which are assumed to be issued exclusively by a bank and enable the holder to transact financially with the bank, whether through withdrawal or deposit. This includes credit cards of all types and ATM cards, as they hold financial value. By broadening the scope of protection, the legislator aimed to safeguard Bank-Related Documents due to their high financial value, as these documents can facilitate the withdrawal of funds from banks. For this reason, legal protection was established for such documents.
SAMA also informed His Excellency the President of the Board of Grievances of this matter and enclosed to His Excellency the two attached statements, Statement No. (1), which clarifies (without limitation) the intended Bank-Related Documents and Statement No. (2), which clarifies the documents intended for commercial papers and securities stipulated in Article 7, which were previously prepared by the working group formed from the banks and SAMA, and as SAMA indicated in its communication that it is ready to answer any inquiry regarding any document not covered by Statement No. (1) as it may be covered by other banking products in the future.
*The Penal Code for Forgery Offences (Royal Decree No. M/11, dated 18/02/1435H) replaced the Anti-Forgery Law (Royal Decree No. M/114, dated 26/11/1380H).
Statement No. (1)
Statement on the Meaning of Bank-Related Documents Mentioned in Article 4 of the Anti-Forgery Law
The bank-related documents referred to in Article 4 are those documents that resemble currency in their characteristics. They are also documents used by banks that include the bank's name, stamps, and signatures of its officials, and carry an official binding nature.
Or This documents that establish an immediate or financial value for or against the bank arising from contractual obligations resulting from the bank's credit transactions with third parties. Examples include, but are not limited to, the following:
1- Traveler's checks:
All types of local and foreign checks, whether he forged the entire traveler's check or forged the signature of the owner.
2- Debit Cards:
Issued by the Saudi Network, these cards are issued by local banks to customers and require a sufficient balance in the account during any ATM withdrawal with a daily maximum withdrawal limit or POS purchase with a daily maximum purchase limit, and the value of the transaction is deducted directly from the customer's account when the transaction is made.
These cards can be used through the networks of some international organizations that are accepted by the Saudi network, such as the Visa and MasterCard networks bearing the Visa Plus, Cirrus and Electron logos.
3- Credit Cards:
All types of Visa Card, MasterCard and American Express are cards that are given to bank customers and others for an annual subscription fee that customers use for payment purposes when purchasing goods or services, and payment is made to the issuing bank during a subsequent period of time, and it is not required that these cards or the customers issued to them have balances or accounts in banks.
- Cash deposit slips.
- Check deposit slips.
- Miscellaneous deposit slips.
- Letter of Credit.
- Documents related to the letter of credit (notice of acceptance of bills of lading, notice of payment to correspondents, bills of lading receivable, notice of debit to the customer for a letter of credit).
- Shipping documents contained on documentary credits (bills of lading whose ownership is transferred by endorsement, marine insurance policies, contracts for the transportation of goods by air or sea, and related commercial invoice originals).
- Letters of guarantee of all kinds (initial, advance payment, final/advance, temporary or permanent insurance, good performance, maritime, enhancement of the external letter of guarantee)
- Release of a letter of guarantee.
- Certificates and declarations issued by banks to third parties for balances or financial positions of customers or other transactions.
- Certificates of deposit of the capital of companies under incorporation with banks.
- Remittance issued by correspondents.
- Credit the value of a draft issued on the account.
- Credit the value of an incoming transfer into the account.
- Internal transfer request to the Treasury Department.
- Credit the value of traveler's checks.
- Deposit of securities.
- Automated checks drawn on correspondents.
- Bank checks drawn on correspondents
- Automated checks drawn on the Treasury in Riyals.
- Savings/manual deposit book.
- Receipt of deposit.
- Inventory of bank vaults.
- Collect from... to account for discounted notes.
- Pay to... for discounted notes.
- Negotiable bank certificates of deposit.
Statement No. (2)
Statement on the Financial and Commercial Papers and Instruments Mentioned in Article 7 of the Anti-Forgery Law
1- Commercial Papers: 1/1- Bill of Exchange. 2/1- Promissory Notes. 3/1- Check (Personal, Counter, Bank, Personal Payment Orders 2- Financial Papers and Instruments 2/1- Shares of Joint-Stock Companies and Exchange of Deposited Shares with Others 2/2- Bonds in the comprehensive sense, whose ownership is transferred in accordance with the rules established for their circulation, including by transfer (for those issued outside the Kingdom) or by registration in the shareholders' register in accordance with the Saudi Companies Law, including promissory notes. 2/3- Government bonds.