Chapter 8: General Requirements for Opening General Accounts
Introduction
80. DTFCs are expected to receive fund from customers in its normal bank accounts maintain with the Bank(s) operating in KSA. Similarly, DTFCs will use its normal bank accounts when funds are remitted back to customers based on Customers' instructions. DTFCs are not required to open a separate bank accounts for purposing of receiving funds from or remitting funds to its customers. However, DTFCs may open a separate bank account for convenience purposes.
81. The requirements of opening and maintaining General and Term Deposit accounts relates to DTFCs internal books and records.
Natural Person
82. DTFCs must NOT open General Accounts and Term Deposit Accounts in the name of Natural Persons.
Juristic Persons
83. DTFCs can only open General Accounts and Term Deposit Accounts for Juristic Persons in accordance with the rules stipulated in the Section 3 of the regulations.
Minimum Information and Documents Required Opening a General Account
84. DTFCs must obtain and record the following information / documents (at a minimum) before opening General Account:
i. Copy of the identity document of the Juristic customer and ensure that they are in the conformity with the original document. ii. Names, Nationalities, Identification Numbers, Identification Documentation Expiry Dates, National Addresses, Profession and means of communication of all Board members and senior managers of the Juristic Person. iii. Names, Nationalities, Identification Numbers, Identification Documentation Expiry Dates, National Addresses, Profession, means of communication and signature forms (signatures, thumbprints, stamps etc.) of all authorized persons of the account. iv. Copies of the Identity documents of all the Board members and Senior Managers of the account holder and authorized person of the account. v. Financial information: source of income (primary / additional), the volume of expected financial transaction on the account (deposit / withdrawal) vi. Verify and record the real beneficiary of the account if different from the account holder vii. Verify and record the control structure and ownership of the Juristic person i.e. the account holder.
Acknowledgement of Term and Conditions
85. DTFC must ensure that the account holder agrees to all the terms and conditions of the agreements of opening the General Account. In addition, terms and condition of opening the General Account should include following statements (at the minimum):
i. Acknowledges and verifies that all the data provided by account holder is true and reliable. ii. Understands all the terms, conditions and provisions of the account opening agreement. iii. Acknowledges Account holder is responsible before the competent authorities for all the information provided at the time of opening and operating the account and all the activities of the account i.e. funds deposited and withdrawal by the account holder or by its authorized persons. iv. Acknowledges that the deposited funds are the result of legitimate activities and that it is responsible for their safety, and that if the DTFC receives any illegal or counterfeit money, account holder is not entitled to recover or compensation. v. Commits to update its and its authorized persons data as and when requested by the DTFC but not more than five years, as well as to provide a renewal of identity documents before the end of its effectiveness. vi. Acknowledges that the DTFC will freeze the account if account holder does not update or renew its data. vii. Acknowledges the right of the DTFC to freeze the account or any of the amounts credited to it in case the DTFC suspects the use of the account or the amounts are for financial fraud. viii. Acknowledges and verify that Account holder is the real beneficiary of the account.
Opening General Account Remotely
86. DTFCs cannot open its General Account remotely for its new customers. However DTFCs can facilitates its new customers to allow them to provide maximum information through electronic and/or digital channel. Upon completing the requirement information and uploading copies of the documents required, Customer must visit DTFCs office to provide Signature forms and Original Documents for verification purposes.
87. DTFCs can open additional General Accounts remotely provided Customer initiates the request through electronic and digital channels. It is responsibility of DTFCs to ensure all requirements relating to General Account Opening are complied with.
Account Identification Details
88. DTFCs shall provide the customer (by any appropriate means) with account identification details showing the customer's name, account number, confirming the account opening.
Opening the Account Without Deposit
89. DTFCs can accept the request to open an account for any client without depositing any amount at the time of making the request. However, DTFCs must ensure that the client will eventually make deposits once account is open.
General and Term Deposits Accounts in Foreign Currency
90. DTFCs are NOT allowed General Accounts in a foreign currency i.e. other Saudi Arabian Riyals
Additional General Accounts
91. DTFCs can open Additional General Accounts in Saudi Riyal provided they are linked / managed under one identification code (CIF). DTFCs must not use the same account number for a new customer.
92. All requirements of opening Additional General Accounts are similar to the opening the General Account for the first time. However, copies of the identify documents relating to account holders, its board members, senior managers and authorized persons of the accounts does not requirement re-submission unless they are different from the documents submitted earlier.
93. All specific documents, relating to account opening such approvals, must be submitted for each new account opening application.
Client Interview
94. Subject to the provisions of these Rules, as a basic rule, it is not allowed to open accounts for new customers unless they are interviewed by the DTFC.
Visiting Customers in Their Premises for Exceptional Circumstances
95. In special and exceptional cases where it is difficult for a client to attend the DTFC Office (for the compelling circumstances of the client), the DTFC may assign two or more of its employees (different positions) to meet clients at their premises and collect the data and documents themselves according to these rules.
Time Period for General Accounts
96. DTFC shall open General Account for legal persons whose opening requirements do not include any special approvals from the concerned departments of the DTFC within one working day of completing the account opening requirements, and within two working days for those accounts for which special approvals are required. The applicant should be notified in writing (or any other means if customer agree i.e. through email or SMS) of any additional deficiencies or requirements within one day of submitting the application.
Electronic Record Keeping
97. For the purpose of establishing a unified automated database of General Accounts and Term Deposit Accounts. DTFCs shall establish an electronic (automated) registry system in accordance with the classification described in Appendix C and its updates based on the information contained in the approved identities.
98. In addition, the DTFC shall establish an electronic register of Juristic Persons, which shall include, at a minimum, the following data:
i. The full official name of the legal person according to the official documents (both in Arabic and English), ii. Commercial registration number or license number if the activity does not require a commercial register. (In case the account is for the purpose of the main commercial register, then main commercial register, but if the purpose of a branch of the commercial register, the sub-commercial registration number is registered provided that links the electronic record of accounts Sub Commercial Register with the main commercial register), iii. Owners Names, Identity Numbers and percentage of ownership - The names mentioned in the Memorandum of Association in accordance with the latest amendments thereof - are authorized to manage accounts along with their Identify Numbers (the owners of the listed joint stock companies are excluded from writing down their identification numbers), iv. Names, Identity Numbers, Copies of IDs and Signature form for the authorized account managers), v. National address of the Juristic person, vi. Tax number (if applicable), vii. The Legal Entity Identifier ("LEI") number (if any) and viii. The reference number and date and the name of the issuing entity in case of the accounts opened pursuant to approvals or official requests.
99. DTFC must identify and record the Names and Identity Numbers of ultimate beneficiaries of the account, which may be different to the owners of the account i.e. in the case of group companies. Only following persons are considered as Ultimate Beneficiaries:
i. Natural Persons or ii. Listed Jointed Stock Entities or iii. Government Entities or iv. Ultimate owners / shareholders (i.e. any of the above three) of any other entity
Requirements for Inspection Purposes
100. For the purposes of inspection by SAMA or upon the request of concerned security departments for investigation purposes, DTFCs must maintain an electronic inspection system to perform routine searches on the electronic records maintained for each type of account holders; provided that this search inspection system Is part of the main system.