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  • Chapter 9: Specific Rules for Opening General Accounts for Juristic Persons

    • Licensed Businesses, Establishments and Shops

      101.DTFCs must obtain following documents before opening General Account in the name of Licensed Business, Establishments and Shops:
       
       i.Copy of the commercial register of the establishment or the shop.
       ii.A copy of the license to practice the activity if it is required for the activity of the establishment alone without the need for a commercial register.
       iii.Identifying and verifying the identity of the owners of the establishment according to the name mentioned in the commercial register or license, and verifying the identity data and its validity.
       iv.Identities of persons authorized to manage and operate accounts.
       

    • Special Purpose Entities

      102.DTFCs must obtain following documents before opening General Account in the name of Special Purpose Entities:
       
       i.Copy of the license of the Special Purpose Entities issued by the Capital Market Authority.
       ii.Copy of license (if any) or commercial registration of the sponsor issued by the competent authority.
       iii.Status of the establishment.
       iv.Identify and verify the personal identities (natural persons) / licenses or business records (legal persons) of the registered directors.
       v.Confirmation to authorize the persons concerned to manage and operate accounts from the owner(s) of the Special Purpose Entities.
       vi.Identities of persons authorized to manage and operate accounts.
       vii.Identification and verification of personal identities (natural persons) / licenses or commercial records (legal persons) of the owners of the Special Purpose Entities named in the Articles of Association and its amendments.
       

    • Institutions that Practice E-Commerce and Have No Official Headquarters

      103.In addition to the requirements stated for the Licensed Business, Establishments and Shops, DTFCs should perform following additional procedures when opening General Account in the name of an institution that practices e-commerce and have no official headquarters:
       
       i.Classify the account type as e-commerce.
       ii.Verify the electronic platform of the Institution through the documentation of electronic stores licensed by the Ministry of Commerce.
       iii.Complete the national address of the institution or its owner.
       iv.Classify these accounts are classified as high-risk accounts and review every two years.
       

    • Holders of Self-Employment Licenses

      104.DTFCs must comply with the following conditions before opening General Account in the name of Holder of self-employment license:
       
       i.Obtain a copy of the self-employment license issued by the Ministry of Human Resource and Social Development.
       ii.Obtain a copy of the national identity of the holder of the self-employment license.
       iii.Obtain and record national address of the holder of the self-employment license.
       iv.Record the name of the account similar to the holder of the self-employment license.
       v.Do not open joint account or authorized by it.
       vi.Link the validity of the account to the date of validity of the self-employment license.
       

    • Licensed Exchange Practitioners

      105.DTFCs must comply with the following conditions before opening General Account in the name of a License Exchange Practitioner:
       
       i.Obtain a copy of the license issued by SAMA.
       ii.Link the validity of the account to the validity of the license issued by SAMA.
       iii.Obtain a copy of the commercial register.
       iv.Ensure the information contained in the commercial register or the license issued by SAMA matches with the information contained in the owner's identity document.
       v.Obtain a copy of the owner’s identity document.
       vi.A copy of the identities of persons authorized to manage and operate accounts.
       

    • Resident Companies Including Joint Stock Companies, Limited Liability Companies, General Partnership and Limited Partnership Companies

      106.DTFCs must comply with the following conditions before opening General Account in the name of a Resident Company:
       
       i.Obtain a copy of the commercial register.
       ii.Obtain a copy of the Articles of Association and its annexes. (if any)
       iii.Obtain a copy of the identity of the manager in charge.
       iv.Identify and verify the identities of the members of the Board of Directors.
       v.Obtain a power of attorney issued by an authorized notary or notary, or authorization prepared within the bank by the person (s) who, by virtue of the Memorandum of Association, the partners' decision or a decision of the members of the Board of Directors, has the power to authorize natural persons to sign and operate accounts.
       vi.Obtain a copy of the identity of persons authorized to sign and operate accounts.
       vii.Identify and verify the identities of the owners of the company named in the Memorandum of Association in accordance with the latest amendments, except for the listed joint stock companies.
       

    • Companies Under Incorporation

      107.DTFCs shall not open General Account if a company is under incorporation.
       

    • Gulf Non-Bank Commercial Companies Residing in the Kingdom

      108.In the case of a Gulf company incorporated in the Kingdom of Saudi Arabia (without an investment license from the Saudi Arabian General Investment Authority), the Gulf company become a resident company thus DTFCs must apply similar conditions as of a resident company.
       

    • Residents Investment Companies Under Foreign Investment Law (Mixed Ownership by National Investor and Foreign Investor)

      109.DTFCs must comply with the following requirements before opening General Account in the name of a Resident Investment Company under Foreign Investment Law (Mixed Ownership by National and Foreign Investors):
       
       i.Obtain a copy of the license issued by the General Authority for Investment.
       ii.Obtain a copy of the commercial register and match the name of the activity, investors) name(s) and ID number(s) stated in the commercial register with the license.
       iii.Obtain copy of the professional license and / or commercial registration of the Saudi companies and institutions for the national investor.
       iv.Identify and verify the personal identities of all the Investors, except thein the case of listed joint stock companies.
       v.Obtain copy of the national identity document of the national investor if he/she is a natural person.
       vi.Obtain a copy of the professional license and/or commercial register of the foreign companies and institutions of the foreign investor in the country of origin or its equivalent approved by the Saudi Embassy.
       vii.Obtain copy of the residency document if the foreign Investor is a natural person and ensure his/her residency document indicate that he/she is a foreign investor by profession, and a copy of his/her passport.
       viii.Copy of the Memorandum of Association and its annexes for the invested foreign partner, approved by the Saudi Embassy.
       ix.Record the addresses of foreign invested enterprises in their countries (if any).
       x.In case of the presence of agents or commissioners in the management of the investing establishment and its bank accounts, a copy of the agency containing the name and identity of the agent or the commissioner and the name of the partner or other partners certified by a notary if issued in the Kingdom or the Saudi Embassy if issued outside the Kingdom. If the authorization to manage the account is prepared on the forms of the bank, it must be prepared by an authorized person and his presence in the bank or stipulated in the agency or the authorization above.
       xi.A copy of the identity of the agent or the commissioner (national identity document for Saudis or Gulf nationals and / or residence document for foreigners) and a clear address for him locally and in his country if he is a foreigner.
       

    • Residents Investment Companies Under Foreign Investment Law (Entities Wholly Owned by a Foreign Investor)

      110.Requirements as stated for the Residents Investment Companies under Foreign Investment Law (Mixed Ownership by National Investor and Foreign Investor) above after excluding requirements related to the National Investor
       
      111.In case of Branches of Foreign Institutions, all above will apply. In addition, obtain a copy of a letter of authorization from the head office of the company or institution in the country of origin, which nominates persons authorized to sign on behalf of the company in the Kingdom in respect of all financial transactions. This copy should be certified by the Saudi Embassy
       

    • Public Companies and Public Sector Institutions

      112.DTFCs must comply with the following requirements before opening General Account in the name of a Public Companies or a Public Sector Institutions (for further guidance on those entities and their names, see Appendix B):
       
       i.Obtain a copy of the decision resolution to form the Board of Directors issued by the Council of Ministers.
       ii.Obtain a copy of the decision resolution by the Board of Directors authorizing person or persons authorized to open and operate these accounts, along with identification documents and a form of their signatures.
       

    • Gulf Resident - Ksa Non-Resident Non-Banking Companies

      113.DTFCs must comply with the following requirements before opening General Account in the name of a Gulf resident - KSA non-resident non-banking companies not resident in the Kingdom:
       
       i.Obtain a copy of the license / commercial registration issued by the governmental authority in the country of origin (residence) in the GCC countries.
       ii.Verify and identify the national identity of the owner(s) of the company (excluding listed joint stock companies) and retain the copy of such identity documents.
       iii.Obtain a copy of the Memorandum of Association and its annexes, which clearly indicate the composition of both the capital and the management of the company.
       iv.Identify and verify the identities of the members of the Board of Directors and retain the copy of such identity documents.
       v.Obtain copies of the identities and nationalities of the authorized managers.
       vi.Obtain a copy of the authorization letter issued by the board of directors authorizing persons to manage the bank account unless specified in the Memorandum of Association.
       vii.Obtain an approval of the Saudi Embassy in the Gulf country by the Company for all the above requirements.
       viii.DTFC's employee must complete the documentation through physically interviewing the client personally (authorized). The final responsibility for the customer's data lies with the DTFCs operating in the Kingdom.
       ix.After the availability of the above documents and requirements, the DTFC will fulfill and apply the KYC rules.
       x.CEO / General Manager and the Head of Compliance Department of the DTFC must approve the opening of the account relating to the Company.
       xi.Allowing the opening of accounts includes all types of Gulf companies, as well as those engaged in commercial, industrial, service, agricultural, and real estate activities.
       xii.DTFCs must NOT open accounts for Gulf resident - KSA non-resident banks, money exchangers, financial investment companies, financial institutions, independent or subsidiary investment funds, insurance companies, individual institutions and licensed shops.
       

    • Non-GCC Non-Resident Commercial Companies and Institutions with No Contracts Or Projects in the Kingdom

      114.DTFCs must NOT open General Account for these companies
       

    • Non Resident Companies and Non-Bank Commercial Establishments with Contracts or Projects in the Kingdom

      115.In case of a commercial establishment or a non-resident company has a contract or project in the Kingdom, DTFCs may open a General Account for the duration of the project or contract in accordance with the following conditions:
       
       i.Obtain an approval from the Ministry of Commerce and / or a temporary license from the General Authority for Investment, the approval of the company's head office and the approval of the Saudi Embassy in the country of origin.
       ii.Obtain a copy of the company's memorandum of association certified by the Saudi Embassy in the country of the company.
       iii.Obtain a recommendation from a bank classified by an accredited rating agency dealing with it in the country of origin.
       iv.Obtain a copy of the contracts demonstrating that the Company is engaged in the contract in a contract in the Kingdom
       v.Obtain a copy of the authorization issued by the head office of the company endorsed by the Saudi Embassy, which specifies the persons authorized to sign in the Kingdom on behalf of the company in respect of all financial transactions, including opening and operating accounts and copies of the identification documents of the authorized persons.
       vi.CEO / General Manager and the Head of Compliance Department of the DTFC must approve the opening of the account relating to the Company.
       vii.DTFCs should close all these accounts at the expiry of the contract period unless the contract period is extended. In case of extension, DTFCs must obtain a copy of the Contract extension.
       viii.DTFCs must classify these accounts high-risk.
       

    • Non-resident and Non-Banking Commercial Companies and Institutions Leased in the Depository Areas in the Kingdom

      116.DTFCs can open General Accounts for companies and institutions authorized to sell and re-export in the depository areas in the local ports in the Kingdom, whether leasing directly from the General Authority for Ports or through the owners of lease concession contracts, for the duration of the lease contract after obtain/meeting the following documents/requirements:
       
       i.A copy of a lease contract in the deposit area certified by the Chamber of Commerce and Industry and the Port Administration.
       ii.A copy of the commercial register of the leased establishment issued in the country of origin and certified by the Saudi Embassy with a clear address of the establishment.
       iii.Recommendation from a bank in the country of origin of the leased company or institution.
       iv.The list of persons authorized to manage the accounts of the leased establishment with copies of residency permits.
       v.DTFCs shall close the account immediately unless lease period is extended. In case of extension, DTFCs must obtain a copy of the lease period extension.
       

    • Legal Persons (Companies, Institutions and Licensed Shops) Owned by Resident Foreigners Who are Authorized to do Business and are not Covered by the System of Foreign Investment

      117.DTFCs can open General Accounts for legal persons (companies, institutions and licensed shops) owned by resident foreigners who are authorized to do business and are not covered by the system of foreign investment companies after obtain/meeting the following documents/requirements:
       
       i.Copy of the commercial register issued by the Ministry of Commerce.
       ii.Copy of the Memorandum of Association and its annexes, if any.
       iii.A list of the owners of the establishment mentioned in the Memorandum of Association and its amendments, if any, and a copy of each of them.
       

    • Ministries and Government Agencies Listed in Annex A and Their Equivalent

      118.DTFCs can open General Accounts for ministries and government agencies listed in Annex A and their equivalent after obtain/meeting the following documents / requirements :
       
       i.Ministries and Government agency should send the request of opening the General Account in a DTFC to the Ministry of Finance. After examining the application, the Ministry of Finance shall inform SAMA of opening the account with the DTFC.
       ii.DTFC must obtain an approval letter from SAMA authorizing DTFC to open an account in the name of Ministry or Government Agency.
       iii.The General Account shall be in the name of the government entity or administration and not in the name of a natural person, its position or its function.
       iv.DTFCs must obtain names and forms of the signatures of the authorized persons and their IDs from the Ministry / Government Agencies as an official letter.
       v.In case the Ministry or Government Agency wishes to amend the name of the account, Ministry / Government Agency shall submit a request to the Ministry of Finance for approval. Ministry of Finance will inform SAMA of its decision and SAMA will inform the DTFC.