Based on the letters of His Excellency the Minister of Finance No. 1/S/9687 and No. 1/S/9690 dated 1/11/1427 H based on the circular of His Royal Highness the Minister of Interior No. 19/46391/SH2 dated 14/8/1426 H regarding the Customs Authority taking the necessary steps to start applying the provisions of the manual Procedures for the disclosure of cash and precious metals on departure and arrival to and from the Kingdom to implement the provisions of Article 14 of the Implementing Regulations of the Anti-Money Laundering Law issued by Royal Decree No. (M/39) dated 25/6/1424 H. SAMA is directed to take measures to regulate the entry and exit of cash into and out of the Kingdom in general, which is carried out by banks and licensed money changers through border crossings in particular, in accordance with the articles of the Anti-Money Laundering Law and its Implementing Regulations and the requirements of the recommendations issued by the Financial Action Task Force (FATF), especially the Special Recommendation IX.

In order to achieve this, SAMA wishes to take the following regulatory steps:

1. Local banks operating in the Kingdom and licensed exchange shops have the right to import and export cash and convertible financial instruments in Saudi currency or other foreign currencies through border crossings.
2. Banks and exchange shops are obligated to notify customs officials at border crossings of the amounts of cash and convertible financial instruments that they carry and wish to enter or exit the Kingdom to apply the principle of disclosure, as well as for representatives of SAMA to conduct inspection and ensure the safety of cash from counterfeiting.
3. This regulation applies to all parties involved in the transportation process, including banks, licensed money changers and their direct and indirect employees, shipping companies, parcel and cargo transportation companies, companies specialized in transporting cash (private security companies), postal transportation, etc.
4. Negotiable and transferable means of payment that are similar in their characteristics to money, such as checks, including Travelers Cheques, Draft Cheques, etc. are considered as part of the funds subject to the application of the law.
5. SAMA's branches and representatives at border points, as well as banks and exchange houses, must record and maintain data and information (information center) related to the movement of cash and transferable financial instruments across borders. This data should be utilized as much as possible for monitoring and conducting studies.
6. Banks and exchange houses must establish regulatory procedures for the transportation of cash and transferable financial instruments both incoming to and outgoing from their premises. These procedures must include the following:

(A) Complete the procedures for buying or selling cash currencies and transferable financial instruments through standard banking practices before initiating the transportation process.

(B) Agree in advance on purchase or sale prices and identify the counterpart involved in the banking transaction (cash purchase or sale) on the other side to finalize the transaction. Avoid engaging in bargaining or bidding for cash in the markets.

(C) Agree on how to arrange and prepare the funds in a manner suitable for both parties, facilitating their transportation, counting, and verification of authenticity.

(D) Ensure strict adherence to security procedures for transporting cash and transferable financial instruments, applying the instructions outlined in the Security Safety Manual as a minimum standard, and utilizing modern and appropriate transportation methods.

(E) Identify the entities involved in buying or selling and verify the legitimacy of their operations, ensuring they possess the required licenses for conducting banking activities.

(F) Restrict the process of sending, receiving, and transporting funds within the Kingdom to Saudi employees only.

(G) Local banks and exchange houses are responsible for verifying the authenticity of the cash and transferable financial instruments they sell or purchase, ensuring the legitimacy of their sources and uses. Furthermore, external entities involved in transactions must share in this responsibility.

Further to SAMA Circular No. 50481/MT/23865 dated 22/10/1432 H, regarding the reluctance of some branches of banks and cash centers in some cities of the Kingdom to deal with the branches of SAMA near them in the operations of cash deposits and withdrawals, and to deal directly with cash centers affiliated to the Bank in other regions, and in view of the consequent increase in the cost and risks associated with the process of transferring cash to other regions, and to the shortage or increase in the different denominations of cash in regions in the Kingdom without another. 

Accordingly, SAMA reaffirms the importance of adhering to the instructions issued in this regard, and that each bank reviews its cash management controls, takes all necessary measures to ensure that cash is not transferred from one region to another, and commits to conducting cash deposits and withdrawals through the nearest branch of SAMA.

          Reference to SAMA's circular No. BCI/15864 dated 10/07/1432 H and No. BCI/15865 dated 10/07/1432 H and other instructions issued regarding the controls and procedures for dealing with cash in its various categories, and in view of the reluctance of some bank branches and cash centers in some cities of the Kingdom to deal with the branches of SAMA near them in deposits and withdrawals and to deal directly with cash centers belonging to the bank in other areas far from it, which led to a shortage or increase in the various denominations of cash in some areas of the Kingdom but not others.

       In view of the consequent increase in the cost and risks associated with the process of transferring cash to branches far from SAMA branch near the bank's branch, SAMA stresses the importance of adhering to the instructions issued in this regard and that each bank (exchanger) reviews its cash management controls and makes appropriate amendments to them in order to limit the transfer of cash and the commitment to conduct deposits and withdrawals through the nearest branch of SAMA and ensure the provision of automated equipment and adequate human resources for counting and examination. Cash sorting in all cash centers and bank branches. 

We hope to instruct the competent department to verify this and inform us of the implementation within a month from its date.

Further to SAMA Circular No. 381000101035 dated 09/10/1438 H regarding contracting with cash transfer companies and using high-specification security bags, and SAMA Circular No. 361000156181 dated 25/12/1436 H concerning the necessity of adhering with the regulations and instructions related to the movement of money and the security safety manual, as well as SAMA Circular No. 15475/MAT/306 dated 12/04/1428 H regarding the regulation of cash transfer between local banks and licensed money exchangers, and SAMA Circular No. 49302/M AT/940 dated 22/12/1428 H which includes the Law of transporting money, precious metals, and negotiable instruments issued by Royal Decree No. M/81 dated 1428/10/18 H.

Therefore, SAMA emphasizes the necessity to review and comply with the provisions of these regulations and instructions issued in this regard, and what is stated in the security safety manual and the specific requirements for vehicles used for transporting cash and items of value exceeding 200,000 Riyals. Anyone found to be transporting money or receiving transferred cash in an irregular manner will be subject to legal penalties.

In reference to SAMA Circular No. 15475/M AT/306 dated 12/04/1428 H, regarding the necessary actions for the General Authority of Customs to begin implementing the procedures outlined in the disclosure guide for cash and precious metals upon departure and arrival from and to the Kingdom, in accordance with Article (14) of the Anti-Money Laundering Law issued by Royal Decree No. M/39 dated 25/06/1424 H, and the requirements outlined by SAMA regarding the regulation of the process for licensed banks and money changers to transport cash in and out of the Kingdom generally through border crossings. Also referring to SAMA Circular No. 341000074807 dated 15/06/1434 H regarding amendments to the Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 11/05/1433 H and its implementing regulations.

SAMA wishes to confirm the regulatory requirements included in the aforementioned circular and we would like to inform you that   Article Fourteen of the Anti-Money Laundering Law issued by Royal Decree No. M/39 dated 25/06/1424 H has been amended to become Article Sixteen in the amended Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 11/05/1433 H, and a paragraph regarding "negotiable financial instruments" has been added, and the term "disclosure" has been replaced with "declaration." Therefore, we hope you will comply and take the necessary actions to align internal instructions and procedures with the amendments included in Article Sixteen of the Anti-Money Laundering Law and its implementing regulations.

Referring to the letter from the Assistant Director of Public Security for Security Affairs No. 3/3472/3 dated 10/5/1438H, which references the recommendations in the report of the committee formed by Public Security and SAMA regarding addressing violations related to the transportation of cash, precious metals, and valuable documents. The report also outlines a mechanism for handling violations by banks against cash transportation companies by reporting such violations to the operations rooms to enable field enforcement units to address them.

Accordingly, please inform the Operations Rooms of the Security Patrols about any violations committed by cash transportation companies or institutions within the bank. Upon the patrol's arrival to address the report, an original and two copies of the notification (report) should be handed over, specifying the time of the report and the time the patrol addressed the situation. This will enable the Security Patrols to document the case and initiate legal and regulatory procedures in accordance with the Law of Transporting Money, Precious Metals, and Valuable Documents, using the attached form.

Following SAMA's circular No. 15475/M A T/306 dated 12/04/1428H regarding the regulation of cash transportation movement for local banks and money exchangers, and SAMA's circular No. 49302/M A T/940 dated 22/12/1428H, which includes the regulations for the transportation of cash and precious metals issued by Royal Decision No. M/81 dated 18/10/1428H, as well as SAMA's circular No. 3202/M A T/52 dated 03/02/1424H, which includes the security safety guidelines.

Whereas SAMA has observed a lack of compliance by some exchange companies and institutions with the regulations and instructions issued regarding the movement of funds and the aforementioned security safety guidelines, SAMA emphasizes the necessity of adhering to these regulations and instructions. Those found to be transporting funds in an irregular manner or receiving cash amounts transported irregularly from other exchange companies and institutions will be subject to the legal penalties stipulated in the Banking Control Law issued by Royal Decree No. M/5 dated 22/02/1386H.

Pursuant to SAMA Circular No. 5922/MAT/62 dated 8/4/1421H regarding the Replenishment of ATMs by Licensed Security Companies for Money Transportation, and given SAMA’s observation that this service has positively contributed to enhancing the performance of the banking sector and enabling it to focus on its core responsibilities, SAMA encourages initiatives that aim to develop and improve this sector and its services to customers. SAMA has sensed that there is a new service that can be offered in the Saudi banking sector, which is for banks to collect cash and transport it from their customers' premises on their behalf to deposit it in their accounts by commissioning licensed security companies.

SAMA has no objection to providing this service because of its role in increasing services in the banking sector and preserving the processes of transferring cash from the customer to the branch, provided that the requirements that will provide this service in a good and safe manner are applied:

- The transfer must be carried out by licensed security companies.

- Coordination with the customer so that the cash is transferred from his premises carefully, taking precautions during the transfer process.

- Cash must be transported in armored cars in accordance with the technical specifications outlined in the Security Safety Manual issued by SAMA Circular No. 485/MA/36 dated 7/1/1416H.

- Adherence to SAMA Circular No. 12337/CT/550 dated 26/8/1419 H, which stipulates the need to coordinate and inform the security authorities when transferring money.

- The transfer process must take place from the beginning of work until ten o'clock at night.

- The cash counting process must take place at the bank's headquarters under bilateral supervision with the necessary means of protection or monitoring through closed-circuit television (CCTV).