Chapter 7: Definitions
General Account
52. A General Account is an accounting record maintained by a DTFC licensed to operate in the Kingdom, generated under a contract called "General Account Opening Agreement" signed by the DTFC and the account holder (the Customer). The agreement sets out the rights and obligations of each of the parties including accounting entries posted by the DTFC in accordance with the applicable regulations and the acceptable rules and practices agreed upon under the account opening agreement, other agreements signed by the two parties, and other instructions.
The purpose of a General Account is to facilitate operations of Deposit Accounts.
Deposit Account
53. A Deposit Account is an accounting record maintained by a DTFC license to operate in the Kingdom, generated to reflect the terms and status of the Deposit Deal. The purpose of the Deposit Account is hold the funds for an agreed period accruing profit at an agreed rate as per Deposit Deal.
Deposit Deal
54. A Deposit Deal is a transaction which is generated under a contract i.e. "Deposit Deal Agreement" signed / accepted by the DTFC and the account holder (the Customer), where an account holder agrees to leave funds with a DTFC for an agreed period accruing profit at an agreed rate. The agreement sets out the rights and obligations of each of the parties including accounting entries posted by the DTFC in accordance with the applicable regulations and the acceptable rules and practices agreed upon under the account opening agreement, other agreements signed by the two parties, and other instructions.
Natural Person
55. For the purpose of these regulations, Natural Person include:
i. Saudi National (Male / Female / Minor), ii. GCC National (Male / Female / Minor), iii. Expatriates holding 5 years residence card (Male / Female / Minor), iv. Expatriates on visits (Male / Female / Minor), and v. Other Individuals not in above capacity
Resident Juristic Persons Including Commercial and Other Organizations
56. These include:
i. all private juristic entities, such as commercial firms, corporations and other organizations licensed by the Ministry of Commerce, ii. if it is a joint venture, or service firms licensed by the Ministry of Municipal and Rural Affairs, the Ministry of Pilgrimage and the like, and iii. financial institutions licensed by the Saudi Arabian Monetary Agency or by the Capital Market Authority, and iv. corporations licensed by the Saudi Arabian General Investment Authority (SAGIA);
including, all juristic parties owned by Saudi citizens or licensed individual expatriates.
Resident Juristic Persons Investing Under the Foreign Investment Act
57. These include all private Juristic persons such as companies and firms and subsidiaries, or similar entities, and natural persons of Non-Saudi nationality and their Saudi investing partners who are licensed to invest in the Kingdom pursuant to the Foreign Investment Act with license issued by the Saudi Arabia General Investment Authority (SAGIA).
Juristic Persons Renting Depository Areas at Saudi Ports
58. These include companies and firms authorized to sell and re-export at depository areas at Saudi Ports, whether renting is as per lease contract entered directly with Port.
Government Entities
59. These include all governmental institutions, ministries, and local juristic entities, whose financing sources are provided by the Ministry of Finance, which open bank accounts for official purposes only.
Other Official Resident Juristic Entities
60. These include foreign embassies, consulates, diplomatic representation offices, and schools and other affiliated institutions, and resident diplomats and foreign employees on temporary visits.
They also include regional, international and multilateral organizations, foreign airlines, Hajj missions, organizations and clubs affiliated, and charity and public welfare societies and committees as well as the Islamic Relief Organization and the World Assembly of Muslims Youth (WAMY) and other entities.
Under Establishment Companies
61. As defined by the Companies Law applicable in Saudi Arabia.
Chambers of Commerce & Industry
62. These are non-profit organizations that provide special services for licensed commercial entities and other business organizations. They also coordinate the relationship between the private and public sectors. They have their own boards of directors.
Non-Resident
63. These include all commercial corporations and other entities and organizations which are not mentioned in the above clauses, and do not have an existence in the Kingdom via commercial or professional license for business, or other official existence such as diplomats and international multilateral organizations.
Persons Having Authority to Appoint Signatories
64. Responsible officers at certain organizations (public/private) whom Financial Companies can, on a case by case basis, identify their powers based on approvals from the Ministry of Finance or SAMA; or based on their job positions or appointment decisions; or on approval from the regulatory bodies, board resolutions; entities owners or by virtue of the Articles of Association, Commercial Registration, job description (finance/human resources), notarized power of attorney, or contracts entered between banks and such organizations; or whom bank can identify through confirmation procedures, as they deem necessary, in addition to the official stamps or signature specimens.
(Responsibility of identification rests upon individual DTFCs).
Incompetent
65. A person legally forbidden from control over his property due to mental incompetence or bankruptcy.
Freezing of Account
66. This term refers to the temporary suspension of withdrawal from a General Account due to the:
i. expiry of the validity of the of identification documents relating to account holder or authorized party acting on behalf of account holder OR ii. failure to update addresses, income sources, signatures and other relevant data relating to account holder or authorized party acting on behalf of account holder OR iii. violation of the provisions of the General Account Opening Agreement.
Blocking of Account
67. This term refers to the suspension of withdrawal from a General Account due to instructions from the supervisory, regulatory or security authorities.
Foundations and Private Philanthropic (Charity) Funds
68. These are non-profit private charity organizations licensed by the Ministry of Human Resources and Social Development. A person or a group of persons (natural or legal) establishes them. Their benefits are limited to providing social and charity services to individuals or specific entities. Their membership is restricted to persons appointed in accordance with their charter.
Philanthropic / Charitable Societies
69. Organizations (juristic entities) licensed by local government agencies to provide religious, charitable and social services. They are dependent upon donations by benefactors.
Philanthropic / Charitable Committees
70. Special committees licensed by local government agencies to serve the disabled and indigent. They are dependent upon donations by benefactors.
Professional / Vocational Organizations, Societies and Committees
71. Societies and commissions licensed by official government agencies to assume professional / vocational specialized roles that serve the interests of their members. They are dependent upon contributions by members, or official government support.
Pilgrimage (Hajj) Missions
Hajj missions are of two types:
72. Type 1: Official Hajj Missions representing their respective governments during the pilgrimage (Hajj) season.
73. Type 2: Individual pilgrims who come to perform Hajj with private foreign agencies (charitable societies, tourist offices or agencies etc...) that are officially authorized by their government to offer Hajj services with a minimum number of 50 pilgrims, and approved by the Saudi embassies and consulates in their home countries.
Cooperative Societies & Funds
74. Co-operative Societies:
Every society formed by the members of a certain region, under the provisions of Societies Act to improve the conditions of its members in production or consumption through the joint efforts of the members using the standard cooperative principles.
75. Cooperative Funds:
These are funds instituted by the employees of a governmental organization or a company under the provisions of Cooperative Funds Act. Its funding source is originated by its members' contributions. Expenditure from such funds is mainly for the purposes of covering social, cultural and sport activities of the Fund's members.
Endowments
There are two types of endowments:
76. Public Charity Endowment:
means a charity endowment for public utility such as mosques, orphans, Quran Memorization Schools, Way Farers, Mosque Imams and Moathens (Caller for Prayers) etc. The Ministry of Islamic Affairs Endowments, Call & Guidance acts as a supervisor on such endowment.
77. Private Endowments:
These facilities are endowed to certain descendants or group of people and have a trustee by virtue of a legal deed. Responsible for implementing the endowment terms. The role of the Ministry of Islamic Affairs, Call & Guidance is limited to supervising the activities of the trustee. In this type of endowment, if the endowed persons cease to exist, the endowment becomes a public charity endowment.
Relief Committees and Campaigns
78. Organizations established under Royal directions and consisting of local governmental or private organizations whose objectives are to arrange for the provision of relief assistances in cash or in kind to certain country, people, or minority.
DTFC's Verification
79. The DTFC's official certified seal on documents or identification card for certification in addition to the bank staff signature and seal. Only DTFC's seal on the copy is not sufficient to be consider as DTFC's verification.