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  • Laws and Regulations

    • Rules Regulating Money Changing Business

      No: 4686 Date(g): 11/7/2020 | Date(h): 21/11/1441Status: In-Force
      • Section 1: Definitions and General Provisions

        • Article 1: Definitions

          The following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto unless the context otherwise requires:

          SAMA: Saudi Central Bank*.

          Rules: Rules Regulating Money Changing Business.

          Money Changing Business: One or more of the activities set forth in Article 11 of the Rules.

          Money Changer: An establishment licensed by SAMA to conduct Money Changing Business in accordance with the provisions of the Rules.

          Customer: Any natural or legal person who benefits from the services of the Money Changer or to whom these services are offered.

          Invested Capital: The capital allocated by the foreign money changer for the use of its licensed branches in the Kingdom.

          License: License issued by SAMA to conduct Money Changing Business.

          Financial Year: The calendar year starting from 1 January and ending on 31 December.

          Third Party: A service provider to whom some work and functions are outsourced. This includes the owners of the service provider, his/her employees and contract employees, as well as the entity affiliated with the Money Changer.


          * The "Saudi Arabian Monetary Agency" was replaced By the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding to 26/11/2020G.

        • Article 2: Purpose

          The objective of these Rules is to: 
           
           a.set a regulatory and supervisory framework for conducting Money Changing Business;
           
           b.determine the permissible activities for Money Changers;
           
           c.expand the spread of Money Changing Business, facilitate its provision, and enhance financial inclusion;
           
           d.stimulate innovation, competition and the use of technology in money changing services; and
           
           e.protect the rights of Customers.
           
        • Article 3: Scope of Application

          These Rules are applicable to Money Changers licensed in accordance with their provisions.

        • Article 4: Prohibited Activities

          a.Any natural or legal person shall be prohibited from the following:
           
          1.Practicing Money Changing Business in the Kingdom without a valid license issued by SAMA in accordance with the provisions of these Rules.
           
          2.Using the terms “money changer”, “money changing agent”, “currency exchanger” or any similar or synonymous expression in any language in its name, commercial address, papers, documents, advertisements or any other way that implies the practice of Money Changing Business without a license.
           
          b.As an exception to the provision of Paragraph (A/1) of this Article, licensed hotels, hotel apartments, and traveling agencies in the Kingdom may exchange currencies for their customers only, provided that such currencies are sold to a licensed bank or Money Changer, the provisions of the Anti-Money Laundering Law and its Implementing Regulations are complied with and the transactions are documented and archived.
           
        • Article 5: Responsibility

          The Money Changer’s management shall be responsible to ensure compliance with these Rules. The management of each Money Changer shall be responsible for approving policies, procedures and processes which ensure the following: 
           
           a.Adherence to the laws, SAMA’s AML, CTF, and fraud and embezzlement instructions as well as information security requirements.
           
           b.Identifying, documenting and addressing risks associated with the Money Changer and developing and implementing adequate risk management policies that are consistent with rules and instructions issued by SAMA.
           
           c.Compliance with the instructions issued by SAMA.
           
      • Section 2: Licensing Requirements and Procedures

        • Article 6: Licensing Requirements

          I.The application for a license to practice Money Changing Business shall be submitted to SAMA. The following are the requirements for issuing the license:
           
           
           a.The legal form of the Money Changer shall be any of the following:
           
            1.a joint stock company;
           
           
            2.a limited liability company;
           
           
            3.a partnership;
           
           
            4.a sole proprietorship; or
           
           
            5.a foreign company branch licensed to conduct Money Changing Business.
           
           
           b.Each founding member of the Money Changer must meet the eligibility requirements specified by SAMA and any conditions related to the proposed legal form of the Money Changer.
           
           c.Provision of comprehensive and detailed information and data and any documents specified by SAMA for the Money Changer to be established. The following shall be attached to the application:
           
            1.A feasibility study that includes the business plan, the administrative structure and the future plan for Money Changing Business.
           
           
            2.An irrevocable bank guarantee for an amount equivalent to the capital issued in favor of SAMA. This guarantee shall be released upon the issuance of SAMA’s decision regarding the application.
           
           
            3.For companies' licensing applications, the memorandum of association, articles of association, and proposed ownership structure.
           
           
          II.SAMA may investigate the applicants by all means it deems appropriate to verify the submitted information, and the applicants shall provide SAMA with the necessary permissions.
           
           
          III.Upon the completion of procedures and all preparations for the head office, SAMA shall address the Ministry of Commerce to complete the procedures according to the system. Upon issuance of the commercial register, SAMA shall issue the license for the applicant.
           
           
        • Article 7: Capital

          The Money Changer shall, at all times, comply with the following: 
           
           
           a.The capital must not be lower than the following:
           
            1.Two million (2,000,000) riyals for paid-up capital.
           
           
            2.Seven million (7,000,000) riyals for paid-up capital for Money Changers licensed to import and export cash.
           
           
            3.Ten million (10,000,000) riyals for paid-up capital for Money Changers licensed to transfer money inside and outside the Kingdom.
           
           
            4.The Invested Capital of the branches of foreign money changers shall be determined by SAMA.
           
           
           SAMA may amend the capital requirements whenever it deems appropriate.
           
           b.Maintain at all times a minimum cash reserve of 5 percent of its capital (10 percent for Money Changers licensed to conduct money transfer activity). SAMA may amend this percentage whenever it deems necessary. The reserve shall be deposited with one of the licensed banks in the Kingdom to be at SAMA's disposal. The Money Changer or any other entity shall not be allowed to use this reserve in any manner without a written permission from SAMA. The reserve shall be subject to the constraints and instructions issued by SAMA.
           
           c.The total value of assets should not exceed ten times the capital. SAMA may amend this limit whenever it deems appropriate.
           
           d.Obtain SAMA’s prior non-objection according to the conditions before offering its shares for public subscription.
           
        • Article 8: License Term

          a.The license shall be valid for a maximum of five years, renewable for a similar period or another period specified by SAMA.
           
          b.The Money Changer must submit an application to renew the license at least six months before its expiration, in accordance with renewal requirements set by SAMA.
           
          c.The Money Changer shall not conduct Money Changing Business if the license expires without renewal. If a month has passed since the expiration of the license without a renewal application from the Money Changer, or when such period has passed without meeting the renewal requirements, SAMA may revoke the license.
           
        • Article 9: License Fees

          SAMA shall collect the following fees for issuing and renewing licenses: 
           
           a.Twenty thousand (20,000) riyals for issuing a license for the activity of purchasing, selling and trading of foreign currencies inside the Kingdom, and five thousand (5,000) riyals for renewal of license.
           
           b.Thirty-five thousand (35,000) riyals for issuing a license for one or more of the activities set forth in Article 11 of the Rules - including the activity of purchasing, selling and trading of foreign currencies inside the Kingdom - and ten thousand (10,000) riyals for renewal of license without prejudice to the provisions of Paragraph (C) of this Article.
           
           c.Forty thousand (40,000) riyals for renewal of the license to conduct money transfer activity inside or outside the Kingdom.
           
        • Article 10: Cancellation of Approval and Non-Commencement of Money Changing Business

          a.SAMA’s approval shall be deemed cancelled in the event of non-completion of application procedures and not obtaining the license within six months from the date of the approval. SAMA may extend this period.
           
          b.SAMA’s license shall be deemed cancelled if the Money Changer fails to commence its business within three months from the date of license issuance. SAMA may extend this period.
           
          c.The fees collected are non-refundable in case the license was revoked.
           
      • Section 3: Money Changer’s Operations

        • Article 11: Permissible Activities

          SAMA shall issue licenses for conducting Money Changing Business. The scope of which shall be limited to: 
           
           a.Purchase, sale and trading of foreign currencies inside the Kingdom.
           
           b.Import and export of currencies for Money Changers that are companies or branches of a foreign money changer, provided that a license is obtained for the purchase, sale and trading of foreign currencies inside the Kingdom.
           
           c.Any other activities as may be determined from time to time by SAMA, taking into account other activities that are limited to banks.
           
           Carrying on money transfers inside and outside the Kingdom shall be permitted to the holders of valid licenses from SAMA at the time of the issuance of these Rules. The holders of these licenses are not allowed to open new branches to practice this activity.
           
        • Article 12: Prohibited Activities

          The Money Changer shall not conduct any unlicensed activity. The Money Changer is prohibited, without limitation, from practicing any of the following: 
           
           a.Practicing any other commercial business not approved by SAMA under its capacity and commercial register that was issued for the purpose of conducting Money Changing Business.
           
           b.Opening current, investment, savings accounts or any other accounts for its customers or employees.
           
           c.Issuing letters of guarantees or opening letters of credit or collaterals in any form whatsoever inside and outside the Kingdom.
           
           d.Renting safe deposit lockers.
           
           e.Having an overdraft in its accounts abroad under any circumstances except for cases resulting from the difference in due payment.
           
           f.Accepting deposits or trusts in any form whatsoever whether in cash or in kind.
           
           g.Extending credit, managing a loan or participating in one of such practices or submitting its assets as a collateral.
           
           h.Speculation in foreign currencies, precious metals, stocks, goods, commodities and the like.
           
        • Article 13: Cessation of Money Changing Business

          The Money Changer shall not fully or partially suspend or end its business, whether in one or more branches, except after obtaining SAMA’s written non-objection in accordance with the conditions it sets, provided that the period of suspension does not exceed three months, and SAMA may extend this period.

        • Article 14: Obligations and Responsibilities of the Money Changer

          a.The Money Changer shall:
           
           1.Conduct Money Changing Business in an adequate place according to the conditions and specifications set by SAMA.
           
           2.Not use the word “bank”, its derivatives, synonyms or any term similar thereto in any language in its documents, publications, commercial address, name or advertisements and shall be committed to use the term “money changing institution” or “money changing company”.
           
           3.Maintain effective oversight over the Money Changing Business and set appropriate controls, policies and work procedures for the Money Changer, including monitoring transactions to identify suspicious and fraudulent ones, in order to ensure compliance with relevant laws, regulations and instructions.
           
           4.Ensure that its policies and procedures are comprehensive and reflect all SAMA regulatory requirements.
           
           5.Adhere to the regulations, operational manuals and risk management policy documents necessary for rendering services to Customers efficiently.
           
           6.Ensure systems’ effectiveness, reliability and security to support its activities.
           
           7.Conduct a periodic independent test, at a minimum once a year, by an internal/external auditor to assess the Money Changer’s operations, including the systems.
           
           8.Record all transactions in the system and prohibit any transaction outside it.
           
           9.Provide adequate technical systems, as a minimum, to manage risks, protect Customers, and combat money laundering and terrorist financing.
           
           10.Maintain a record of all transactions, in accordance with the instructions issued by SAMA in this regard.
           
           11.Maintain and archive data and documents in accordance with the instructions issued by SAMA.
           
           12.For Money Changers licensed to conduct money transfers inside and outside the Kingdom, maintain at all times a full cover for outstanding remittances drawn on their headquarters or correspondents inside and outside the Kingdom to allow payment of the remittance once the order is received.
           
           13.Comply with the safety and security requirements issued by SAMA.
           
           14.Place the license issued by SAMA in a conspicuous place at its head office and branches.
           
           15.Associate the name of the Money Changer with the license number in all of its publications, correspondence and all its statements.
           
           16.Maintain the confidentiality of any information obtained during the course of conducting its business and refrain from disclosing or benefiting therefrom in any manner even after the end of its work except after obtaining SAMA’s prior consent.
           
           17.Set a business continuity plan.
           
          b.SAMA may issue any instructions it deems necessary to implement the supervision and control requirements for Money Changing Business.
           
        • Article 15: Outsourcing

          Subject to the outsourcing instructions issued by SAMA, the Money Changer shall be responsible for complying with the provisions of these Rules when outsourcing any functions to a Third Party. The Money Changer seeking to outsource some work and functions to a Third Party must: 
           
           a.Have an approved outsourcing policy that is periodically reviewed and applied to all outsourcing operations.
           
           b.Ensure that there are no obstacles preventing SAMA from accessing data and inspecting the Third party.
           
           c.Ensure that the Third Party is licensed to practice its commercial activity.
           
           d.Sign a written and fixed-term contract detailing the rights and obligations of both parties.
           
           e.Not deal with any Third Party that is proven to have supplied one of its contracting Money Changers with false or inaccurate information under these Rules.
           
        • Article 16: Insurance

          The Money Changers are obligated, at all times, to obtain insurance coverage from a licensed insurance service provider in the Kingdom, provided that it covers all property belonging to the Money Changer, including cash and transferable financial instruments of all kinds.

        • Article 17: Relations with Financial Institutions

          Prior to entering into a foreign correspondent relationship or currency import and export contracts, the Money Changer shall inform SAMA in writing and adhere to the following measures in order to mitigate the risks associated with such relationships and contracts: 
           
           a.Collecting sufficient information about the contracted financial institution to fully understand the nature of its work and assess its reputation and the type of supervision to which the institution is subject based on the information available to the Money Changer, including whether it has previously been subject to a money laundering or terrorist financing investigation or regulatory action.
           
           b.Evaluating the controls applied by the contracted financial institution to combat money laundering and terrorist financing.
           
           c.Clearly understanding the responsibilities of each financial institution in combating money laundering and terrorist financing.
           
           d.Being sufficiently satisfied that the financial institution does not allow its accounts to be used by shell banks.
           
           e.Complying with all instructions issued by SAMA from time to time.
           
        • Article 18: Currency Import and Export

          The Money Changer licensed to engage in the activity of currency import and export shall develop regulatory policies and procedures for importing and exporting the currencies, provided that such procedures include, at a minimum, the following: 
           
           a.Notifying customs officers at border crossings of the imported and exported amounts of money.
           
           b.Maintaining documents of currency import and export.
           
           c.Preparing funds for their transfer properly.
           
           d.Complying with all the instructions issued by SAMA regarding currency import and export, including not dealing with the entities specified by SAMA.
           
        • Article 19: Products and Electronic Services

          The Money Changer shall obtain SAMA’s non-objection before providing e-services, introducing a new product or modifying an existing one. Upon submitting the request, the Money Changer must provide SAMA with all information and documents relating to its request and comply with any instructions issued by SAMA in this regard.

        • Article 21: Human Resources

          a.The Money Changer must comply with SAMA's instructions relating to the employees of the money changing sector as follows:
           
           1.Complying with the requirements of job Saudization and the requirements of contracting with employment service companies according to the instructions issued by SAMA.
           
           2.Adhering to SAMA’s instructions regarding working hours, leaves and official holidays.
           
           3.Complying with SAMA's instructions regarding the requirements for appointment to senior positions.
           
          b.The Money Changer shall provide an administrative structure including all departments and functions and specifying tasks of the departments as well as duties and responsibilities of each individual. In addition, a qualified compliance officer shall be appointed.
           
        • Article 22: Training of Money Changer’s Staff

          The Money Changer shall train its employees on a regular and ongoing basis to improve their efficiency and keep abreast of developments and the instructions issued by SAMA.

        • Article 23: Head Office and Ownership Structure

          The Money Changer shall obtain SAMA’s non-objection prior to: 
           
           a.Opening a branch or more to practice Money Changing Business, and in this case, the non-objection is limited to the Money Changers that take the form of a company or a branch of a foreign money changer.
           
           b.Owning or renting a head office to conduct Money Changing Business.
           
           c.Relocating or closing the head office, one of the branches or any other platform, provided that the application is submitted to SAMA at least thirty (30) days before the set date. After obtaining SAMA’s non-objection, the Money Changer must make an announcement regarding the relocation or closing of the head office, branch or platform for the public to see it clearly at all times.
           
           d.Making any change in the structure or ownership of the capital.
           
           e.Making any amendment to the Money Changer’s memorandum of association or articles of association for the Money Changers that take the form of a company.
           
        • Article 24: Information Technology (IT) and Operational Requirements

          The Money Changer shall, at a minimum, ensure the following: 
           
           a.The technology deployed comprises a set of interoperable infrastructure modules that work seamlessly and harmoniously. There must be a direct connection among the branches of the Money Changer.
           
           b.An electronic record that includes transactions is maintained and is submitted to SAMA upon request.
           
           c.Adequate measures are in place to mitigate all the risks that could arise from the deployment and use of its IT infrastructure.
           
           d.The IT infrastructure is physically and logically secure and can achieve the main goal of automation and electronically provide services in a comprehensive manner.
           
      • Section 4: Customer Protection

        • Article 25: Customer Protection Requirements

          The Money Changer must put in place an appropriate Customer protection framework that meets all the requirements issued by SAMA and particularly contains the necessary measures regarding protection from risks of fraud and loss of privacy. In addition, the following shall be adhered to at all times at a minimum: 
           
           a.Clear information boards stating Customer rights must be put for the public in the head office, branches and electronic platforms of the Money Changer.
           
           b.Receipts for all transactions executed shall be issued, and a copy thereof shall be delivered to the Customer. Using electronic receipts, such as SMS messages or notifications, is allowed.
           
           c.A currency exchange rate board must be prominently displayed in the head office, branches and electronic platforms of the Money Changer.
           
           d.Specific channels must be made available for receiving Customer complaints and handling them within a reasonable period not exceeding seven (7) days from the date of submitting the complaint. Reports on such complaints and their results must be maintained. In addition, these channels should be announced and known to Customers, and the Money Changer must notify Customers that they can turn to SAMA if no settlement is reached.
           
           e.Protection measures of Customer information must be developed. The Money Changer must ensure that such information is not disclosed to unauthorized third parties without prior non-objection of SAMA.
           
      • Section 5: Supervision of Money Changers

        • Article 26: Key Inspection and Supervision Procedures

          a.SAMA shall implement the provisions of these Rules concerning supervision and control on Money Changers.
           
          b.The Money Changer shall provide SAMA, in the form and time it specifies, with any data, records or documents it requires.
           
        • Article 27: On-Site Inspection

          a.SAMA has the right to conduct full and unrestricted inspections at any time and as it deems appropriate. This includes inspection of internal systems, documents, reports, records, employees, head offices, activity, financial conditions, information, data and documents sent by the Money Changer to SAMA and other matters that SAMA deems necessary to review as well as taking copies thereof. SAMA may carry out the inspection through its employees or through designated bodies or persons.
           
          b.The Money Changer and its employees shall provide the records, data and documents requested by SAMA employees or designees in the form and time they specify. The Money Changer's employees must disclose the information they possess relating to Money Changing Business and any suspected violations.
           
      • Section 6: Data and Reports

        • Article 28: External Auditor

          a.Each Money Changer must appoint a licensed external auditor to examine the financial statements, audit and review its accounts, and evaluate internal control systems, provided that the total period of the auditor's appointment does not exceed five continuous years.
           
          b.If the Money Changer fails to assign an auditor within a period of three months from the beginning of the Financial Year, SAMA may appoint an external auditor at the expense of the Money Changer.
           
          c.In addition to the auditor that the Money Changer is required to appoint pursuant to Paragraph (a) of this Article, SAMA may, if it deems it necessary, appoint another external auditor at the expense of the Money Changer to audit and review the accounts of the Money Changer or evaluate its internal control systems. SAMA shall specify the duration of the work and the fees of the auditor.
           
        • Article 29: Periodical Statements

          a.The Money Changer must provide SAMA with periodical data that have information on the Money Changer’s business, including, but not limited to, the following:
           
           1.data on the location and geographical coordinates of the head office and branches;
           
           2.a list of names, job titles and contact numbers of senior position holders; and
           
           3.a list containing staff data.
           
          b.The Money Changer shall update the data provided to SAMA if a change occurs in the information referred to in Paragraph (a) of this Article.
           
        • Article 30: Annual Reporting

          The Money Changer shall provide SAMA with an approved annual report that includes information about its business as well as the following information, at a minimum: 
           
           a.nature, value, volume and geographical distribution of operations or transactions;
           
           b.fraud, burglary and theft incidents; and
           
           c.customer complaints, their nature and number, and the remedial measures taken to address them.
           
        • Article 31: Preparing Reports

          The Money Changer shall maintain accounting records in which its transactions are registered promptly according to SAMA's specification. The Money Changer shall follow the accounting standards applied in Saudi Arabia. Moreover, the Money Changer must provide SAMA, upon its request and at the times it specifies, with data or reports including the following: 
           
           a.The financial statements that are reviewed by the external auditor every three months starting from the beginning of the Financial Year.
           
           b.Audited final accounts including the external auditor’s report, provided that the report includes any observations on such statements and the extent of their conformity with applicable laws and standards.
           
           c.A report on the evaluation of internal control systems, including any observations regarding compliance with the provisions of these Rules.
           
           d.A monthly statement of foreign currency sales and purchases according to the form specified by SAMA.
           
           e.A monthly report on currency import and export operations for those that are licensed to practice such activity.
           
           f.Data on outgoing and incoming remittances and purpose thereof on a monthly basis according to the format specified by SAMA.
           
      • Section 8: Violations and Revocation of License

        • Article 33: Penalties and Corrective Actions

          a.Without prejudice to any more severe penalty stipulated in any other law, SAMA may take one or more of the following actions against the licensed Money Changer that violates the provisions of these Rules, instructions, or relevant decisions or decisions issued in implementation thereof:
           
          1.Notifying the Money Changer of the irregularities in its business.
           
          2.Issuing a warning to the Money Changer.
           
          3.Requiring the Money Changer to take any actions to correct the existing situation in the form and time specified.
           
          4.Requiring the Money Changer to close one of its branches or platforms.
           
          5.Suspending, restricting or prohibiting specific services or products provided by the Money Changer.
           
          6.Temporarily suspending the license.
           
          7.Revoking the license in whole or in part.
           
          8.Imposing a fine not exceeding ten thousand riyals in accordance with Article (12) of SAMA's Charter.
           
          9.Applying the penalties stipulated in the relevant laws, as the case may be.
           
          b.The penalties and decisions applied shall be published on SAMA’s website.
           
        • Article 34: Revocation of License

          a.SAMA may terminate the license of any Money Changer (in whole or in part) if it violates any of the provisions of these Rules, relevant instructions or decisions, or decisions issued in implementation thereof, including, without limitation, in the following cases:
           
           1.If the Money Changer does not fulfill the requirements of the laws, regulations, rules or decisions, the application of which is supervised by SAMA.
           
           2.If the Money Changer fails to maintain one of the license requirements.
           
           3.If SAMA discovers that the license issued is based on false information.
           
           4.If SAMA discovers that the Money Changer’s conduct of business has been detrimental to the interest of its Customers or to the public interest.
           
           5.If the Money Changer prevents the inspection team assigned by SAMA from performing its duty.
           
           6.If the Money Changer refuses to provide SAMA with the information and documents it requests, or if such information or documents were incorrect or forged.
           
          b.SAMA may terminate the license of any Money Changer if it fails to fulfill the business requirements, including, but not limited to:
           
           1.If SAMA discovers that the Money Changer is in a position that does not enable it to continue conducting its business.
           
           2.If the Money Changer goes bankrupt or defaults on its debts for a period more than three months.
           
           3.If the Money Changer’s accumulated losses reach 50% or more of its capital.
           
           4.If the Money Changer's business falls below the level that SAMA deems acceptable.
           
           5.Upon a request by the licensee to terminate its license if it is a sole proprietorship, or an agreement reached by the partners to dissolve the Money Changer before the license expiry date.
           
           6.If any of the reasons for dissolution set forth in the Companies Law exist.
           
           7.Upon the death of the owner of the Money Changer that takes the form of a sole proprietorship.
           
          c.The Money Changer shall be notified in writing when the license is revoked, and it shall perform the following:
           
           1-Immediately stop practicing the activity related to the license revoked.
           
           2-Announce the dissolution of the Money Changer.
           
           3-Go into liquidation within a period not exceeding six months from the date the Money Changer is notified of the license revocation, provided that this is done in accordance with the relevant laws and SAMA has the right to assign a liquidator to carry out the liquidation process.
           
           4-Maintain and keep records and data at the disposal of SAMA for the period it specifies without prejudice to the provisions of the relevant laws.
           
      • Regulations of License Fees for Money Changing Business

        This section is currently available only in Arabic, please click here to read the Arabic version.
    • Guide to Organize Operational Procedures for Money Exchange Centers

      No: 361000067859 Date(g): 25/2/2015 | Date(h): 7/5/1436Status: In-Force

      Translated Document

      • Definitions

        Central Bank: Saudi Central Bank*.

        Category (A) Money Exchange Center: Any institution or company authorized to exchange various currencies and trade in them, handle traveler's cheques, and issue or accept remittances from licensed correspondents and money transfer service companies.

        Category (B) Money Exchange Center: Any institution or company authorized to exchange various currencies and trade in them, and handle traveler's cheques. (Not permitted to issue or accept financial remittances).

        Financial Intelligence Unit: The authority responsible for receiving and analyzing reports of activities suspected of being related to money laundering and terrorist financing from all financial and non-financial institutions.

        Financial Action Task Force (FATF): An international governmental organization whose mission is to set standards and promote effective implementation of legal, regulatory, and operational measures to combat money laundering, terrorist financing, and the proliferation of weapons of mass destruction, and other threats related to the integrity of the Global financial system.


        * The "Saudi Arabian Monetary Agency" was replaced By the "Saudi Central Bank" in accordance with The Saudi Central Bank Law No. (M/36), dated 11/04/1442H, corresponding to 26/11/2020G.

      • 1) Customers of Money Exchange Centers

        In this guide, a customer refers to any individual (natural or legal) who conducts a financial transaction through a money exchange center. This category includes citizens, residents, as well as visitors (transient customers) who hold a temporary visa/residence permit, in addition to pilgrims and those performing Umrah. All customers must possess valid identification documents.

         Money exchange centers customers can be classified as follows:

        • 1-1) Members of Money Exchange Centers

          These are individual (natural persons) or legal entities (institutions, companies, organizations, etc.) that have a membership with the money exchange centers for services (money transfers/exchanging currencies). Membership is recorded in the exchange center’s register with a unique number linked to the customer’s name and identification number for citizens, valid residence permit for expatriates, and commercial registration or license for legal entities. Membership records include all identifying data of the customer, including national identification for citizens, residence details for expatriates, and documenting this in the customer's membership upon establishing the relationship (creating a unique membership number for the customer). The money exchange center retains the identification number as an electronic reference for transactions and maintains a historical record of the customer’s financial transactions.

        • 1-2) Transient Customers

          These are only natural customers who do not have a membership with the money exchange center due to their limited and occasional need for the services (money transfers/exchanging currencies). Tourists with temporary visas/residences, as well as pilgrims and those performing Umrah, are allowed to exchange money, cash cheques, and receive incoming money transfers only through authorized exchange centers. The money exchange center must maintain a record of all transactions with this category of customers, including detailed data linked to their passport number for pilgrims, Umrah performers, and tourists. Financial transaction limits for transient customers will be detailed in this guide. Citizens and residents can exchange currencies without establishing a membership as detailed in section (3-1) below.

          If there is suspicion of financial transactions related to money laundering or terrorist financing, the money exchange center must promptly report the transaction to the Financial Intelligence Unit, including a copy of the passport, a description of the transaction, and detailed information about the transient customer.

      • 2) Customer Acceptance Policies and Procedures

        Customer acceptance policies and procedures include all relevant factors related to the customer as a person conducting a financial transaction through the money exchange center. This involves verifying identity, address, occupation, income, sources of funds, and the purpose of the relationship between the money exchange center and its customers. It is essential to comply with all regulations and instructions issued by SAMA, follow anti-money laundering and counter-terrorist financing guidelines, and adhere to the Know Your Customer (KYC) principles and due diligence procedures for various types of customers. The necessary classifications and conditions for establishing a working relationship with the customer must be defined, along with strict adherence to all other relevant regulations and instructions.

        • 2-1) Issuing a Membership Card

          A customer of the money exchange center fills out personal details in an individual membership application form for individuals or an institutional membership application form for establishments to benefit from the money exchange center’s services. The money exchange center issues a membership card containing a unique number linked to the system, storing personal data, a copy for the ID, signatures verifying the customer's presence and the accuracy of the data provided, and the details of the beneficiary of the transfer at the money exchange centers authorized by SAMA to conduct this activity. The customer can present their membership number for any financial transaction and provide the original ID to confirm identity and that the ID is valid.

          Membership is subject to regulatory procedures such as data updating, freezing, reservation, and setting financial limits based on customer status and transaction patterns.

        • 2-2) Conditions for Opening Membership

          Membership must meet the due conditions for the verification requirements of identity and the real user (beneficiary), including the following:
           

          1. The applicant must be 18 years old or older.
          2. Complete the KYC information in the membership application form and confirm its accuracy by signing.
          3. Provide a copy of a valid national ID for citizens or a residence permit for expatriates. For legal entities (customers with legal capacity), a copy of the commercial registration or activity license to practice the activity, including the address and the actual owner, must be provided.
          4. The money exchange center is responsible for verifying data accuracy with original documents, stamping and dating each document, and storing them in the electronic system.
          5. A recognized representative must be available for a veiled woman.
          6. A representative must be present for visually impaired and minor individuals.
          7. For expatriates with a temporary residence permit in the passport, membership can be granted based on this permit (for 3 months) and frozen after its expiration until a valid residence permit is issued.
          8. Follow instructions related to prohibited persons as per Security Council resolutions (updated data can be obtained from the UN website or global systems like WORLD CHECK).
          9. Specify the number of beneficiaries for money transfers abroad and provide complete information such as name, ID number (if available), account number, and address.
          10. Membership cannot be shared among multiple persons and must be used solely for the intended purpose for which it was opened.
        • 2-3) Data Update with Customer Presence

          The money exchange center must update customer data (regarding their membership) in the following cases:

          1. Upon expiration of the ID, commercial registration, or a maximum of 3 years, whichever comes first.
          2. When there are doubts about the customer’s identification documents or the nature of their financial transactions.
          3. If financial transactions do not match the information provided to the money exchange center or if there is a change in the transaction patterns or behavior of the customer.
          4. When changing or adding beneficiaries for money transfers abroad in authorized  money exchange centers.
        • 2-4) General Instructions Regarding Customer Acceptance

          1. The money exchange center must verify the customer’s identity through valid identification documents in all dealings.
          2. The nature of the customer’s activities and transactions must match the size, purpose, and type of financial operations executed, including knowing the actual beneficiary and taking necessary verification measures.
          3. Money exchange centers are not allowed to treat legal customers (companies, institutions, organizations, etc.) as transient customers.
          4. Internal authorizations or powers of attorney from individuals, institutions, or companies for transactions are not permitted.
          5. Financial transfers (in Category A money exchange centers) or currency exchange on behalf of customers are allowed only with a power of attorney from a notary, with the condition that the attorney is a Saudi national, ensuring all data of the membership holder and the attorney are collected per KYC requirements and updated as needed.
          6. The validity of residency/visas/temporary residences must be considered when dealing with expatriates, pilgrims, and visitors.
          7. Information should be verified based on legal documents such as national ID, residence, or passport, and a copy should be obtained and authenticated by both the customer and the employee.
          8. Do not accept transactions under fictitious or unknown names.
          9. Link the membership number to the name and ID number and use them as an electronic reference for transactions.
          10. Apply KYC requirements and anti-money laundering and counter-terrorism financing rules issued by SAMA, along with other related regulations and instructions.
          11. Terminate the relationship with a customer if the money exchange center cannot verify transaction sources or doubts the accuracy of the customer’s identification data or its adequacy, or if the customer continues to use the membership for purposes other than those intended.
        • 2-5) Know Your Customer (KYC) Principle

          The purpose of applying the KYC principle is to enable the money exchange center to form an appropriate understanding that it knows the true identity of each customer with a suitable level of confidence and understands the types of business and transactions the customer is likely to conduct with the money exchange center. The money exchange center’s procedures should include the following to achieve this principle:

          1. Continuously identify and verify the identity of all permanent and transient customers.
          2. Identify and verify the true beneficiaries of all transactions conducted by customers to the extent that achieves full understanding and knowledge.
          3. Assess the risks associated with different types of customers and take appropriate actions to enhance identification and verification requirements for customers or true beneficiaries.
          4. Continuously update the identification and verification requirements for all customers and true beneficiaries.
          5. Monitor changes in the identity of customers and true beneficiaries and address their impact on oversight and control requirements.
          6. Customer and beneficial owner identification records should be accessible to the person responsible for compliance with anti-money laundering and counter-terrorism financing standards and relevant responsible officials.
          7. Verify customer and true beneficiary identities from reliable and independent sources.
        • 2-6) Due Diligence Procedures (CDD)

          Applying due diligence procedures here means that money exchange centers monitor customer and true beneficiary financial transactions, ensure they understand and verify all operations they engage in, and ensure the accuracy and clarity of the membership creation data. Money exchange centers in the Kingdom must apply basic due diligence procedures to all permanent and transient customers, including true beneficiaries, and ensure that these procedures are continuous and commensurate with the risk levels associated with the business and transactions conducted by customers, as follows:

          1. Monitor financial transaction activities and ensure the compatibility with the information provided by the customers.
          2. Apply due diligence procedures when establishing a business relationship and enhance them when conducting occasional transactions exceeding previously disclosed limits or when there is suspicion of money laundering or terrorist financing, regardless of exemptions or specified transaction limits, or if there are doubts about the accuracy or adequacy of previously obtained data for identifying customers.
          3. Verify if any person (natural or legal) is acting on behalf of the customer and ensure the legality of this.
          4. Identify individuals (natural and legal) who have ownership or control over the customer.
          5. Enhance due diligence procedures for high-risk customers and business relationships, which may be due to the customer’s business activity, ownership structure, volume, or types of expected or actual transactions, including those involving high-risk countries or those identified as high-risk under applicable laws or regulations, such as correspondent banking relationships and politically exposed persons.
          6. Simplified due diligence procedures are not acceptable if there is suspicion of money laundering or terrorist financing.
          7. Mitigate due diligence requirements for relationships classified as low-risk categories, such as:
           a. Individuals whose main source of income is known and appropriate, such as salaries, pensions, or social benefits, where the transaction level matches the source of funds.
           b. Transactions involving small amounts or specific types of transactions.
          1. Avoid terminating or restricting business relationships with entire customer categories solely to avoid risk management or limited financial returns (profits) without considering other risk mitigation measures for individual customers within a particular sector and evaluating each case individually.

           

      • 3) Money Exchange Activities

        • 3-1) Buying and Selling Cash Currencies from and to Customers within the Kingdom of Saudi Arabia

          Buying and selling foreign currencies is a key activity that requires a license from SAMA. Currency exchange is one of the primary functions of money exchange business. Therefore, every money exchange center (Category A and Category B) must provide this service to customers. When engaging in the activity of buying and selling cash currencies (currency exchange), whether with related or transient clients, whether individuals or legal entities (individuals or companies), the following conditions must be met:

          3-1-1) Natural Persons and Legal Entities (Non-Financial Institutions):

          1. For currency exchange transactions with natural persons where the amount is less than (5,000) SAR or its equivalent, it is sufficient to view the customer's ID to ensure its validity and effectiveness. A receipt must be issued containing the name of the exchanger, the exchange rate, the amount in local and foreign currencies, and the date and time of the transaction. The transaction must be recorded and saved in the records.
          2. For currency exchange transactions with foreign clients (from 5,000 to 50,000 SAR or its equivalent), a copy of the ID must be taken and the data recorded in the automated system. A receipt must be issued containing the name of the exchanger, the exchange rate, the amount in local and foreign currencies, and the date and time of the transaction. The transaction must be recorded and saved in the records. For foreign visitors and pilgrims with temporary visas/residences, passport information must be reviewed, and a copy including the entry stamp and visa number must be obtained and verified against the original by the employee. The money exchange center must keep the passport number as a reference for transactions in the automated system.
          3. For currency exchange transactions with Saudi citizens (from 5,000 to 100,000 SAR or its equivalent), a copy of the ID must be taken and the data recorded in the automated system. A receipt must be issued containing the name of the exchanger, the exchange rate, the amount in local and foreign currencies, and the date and time of the transaction. The transaction must be recorded and saved in the records. GCC citizens are treated as Saudi citizens and identified through their passports or national ID cards issued by their country.
          4. For currency exchange transactions with high-income clients (citizens more than 100,000 SAR or its equivalent, and foreigners more than 50,000 SAR or its equivalent), this must be done through a membership, ensuring the client's income aligns with their profession and activity, and implementing the Know Your Customer (KYC) principle and Customer Due Diligence (CDD) procedures as mentioned in paragraphs (2-5 and 2-6). A copy of the ID must be taken and the client's data recorded in the automated system. A receipt must be issued containing the name of the exchanger, the exchange rate, the amount in local and foreign currencies, and the date and time of the transaction. The transaction must be recorded and saved in the client’s record.
          5. Exchange transactions for legal entities are allowed without financial limits through a membership, applying the Know Your Customer principle and enhanced due diligence, in compliance with the requirements of establishing a membership. A receipt must be issued containing all relevant information about the client, transactions must be recorded in the records, and the following procedures must be observed:
           Verification of the legal entity through original, valid documents.
           Verification of the ultimate beneficial owner of the membership (controlled) or the financial transaction by reviewing original, valid documents during identity verification.
           Continuous due diligence regarding the client, obtaining information about the purpose of the membership and the nature of the business based on the type of client and the relationship or transaction.
           Recording all data of the authorized transaction executor or agent performing currency exchange on behalf of the legal entity in the system.
           Continuous auditing and monitoring of all financial transactions during the relationship period to ensure they align with the client’s knowledge, data, source of wealth, and funds.
          1. Establishing a membership for recurring clients performing currency exchange and linking their transactions to membership records originally associated with the ID number, ensuring that currency exchange transactions are only conducted through membership.
          2. The nature of the client's activities and transactions must align with the size, purpose, and type of financial transactions conducted, ensuring that transactions correspond to the client’s activity and annual income limits.
          3. In cases of repeated currency exchange transactions without a clear purpose or convincing justification, or for high-risk entities or politically exposed persons (PEPs) such as senior officials and diplomats, the exchange office should enhance due diligence, evaluate the relationship with the client, and consider restricting or terminating the relationship or reporting to the Financial Intelligence Unit if necessary.
          4. Ensure that the information provided by the client is used only for authorized purposes, maintaining banking secrecy and preventing its use for any other purposes.
          5. Verify the names of members against lists of individuals and entities whose assets should be blocked, refused, or frozen based on supervisory instructions and international decisions, such as UN Security Council resolutions (1373 and 1267), paying attention to warning data from international organizations, including the Financial Action Task Force (FATF). Information can be obtained from the FATF website (http://www.fatf-gafi.org/topics/high/riskandnon-cooperativejurisdictions). Also, monitor sanctions lists from other countries and groups and take necessary actions accordingly.
          6. Monitor all transactions to detect abnormal activity patterns lacking a clear economic or legal purpose, examining the background and purpose of such transactions as thoroughly as possible, and document the findings in writing. Precautionary measures should be taken when dealing with clients to avoid falling into fraud.
          7. Report any transactions where there are reasonable grounds to suspect a connection with criminal or illegal activities to the relevant security authorities (Financial Intelligence Unit for money laundering or terrorism financing suspicions; local police for other crimes such as embezzlement, counterfeiting, forgery, fraud, etc.).
          8. Purchasing traveler's cheques falls under the activity of buying cash currencies and is subject to all instructions and requirements related to cash currency purchases.
          9. Direct natural persons wishing to exchange currency in amounts exceeding the allowed financial limits to local banks.
          10. Implement an awareness program for clients, especially during vacation and travel seasons, and advise them that some countries have restrictions on importing their currencies. Ensure clients verify such restrictions before purchasing local currencies for those countries to avoid facing any legal issues.

          3-1-2) Financial Institutions:

          When engaging in buying and selling cash currencies with a financial institution (money exchange center or bank), whether local or foreign, the following conditions must be met:

          1. Deal only with entities licensed locally by SAMA. For foreign financial institutions, ensure they are licensed by the relevant regulatory and supervisory bodies in their respective countries authorized to buy and sell cash.
          2. Document all cash sales or purchases and transferable financial instruments, and record them in the exchanger’s records.
          3. Provide SAMA (Bank Supervision Department) with a monthly statement including all cash sales or purchases and transferable financial instruments conducted with financial institutions (banks and money exchange centers) both domestic and international, using the provided form (Appendix 1).
          4. Complete the purchase or sale agreement for cash transactions and transferable financial instruments through usual banking procedures before proceeding with the transfer.
          5. Agree in advance on purchase or sale prices and specify the relevant party in the banking transaction (purchase or sale of cash) with the other party to complete the transaction, avoiding bargaining or bidding on cash in domestic and foreign markets.
          6. Local money exchange centers are responsible for verifying the authenticity of cash and transferable financial instruments they buy and sell and the legality of their source and uses. Foreign entities dealt with must share this responsibility.
          7. Inspect cash and transferable payment instruments similar to cash, such as cheques including traveler’s cheques, and ensure they are free from counterfeiting or forgery.
        • 3-2) Domestic and International Money Transfers

          Money transfers within and outside the Kingdom are permitted for those holding a valid license from SAMA (Category A money exchange centers) at the time the Rules Governing Money Changing Business were issued by Ministerial Decision No. 1357 dated 01/05/1432H. money Exchange centers in this category may carry out both domestic and international transfers (sending and receiving) using modern financial transfer systems such as the SWIFT system and the Saudi Financial Transfer System (SARIE). They may also use instant financial transfer systems or contract with reliable financial transfer service providers according to the conditions specified below in paragraph (3-2-2). When engaging in money transfer activities, the following conditions must be met:

          1. Money transfer operations for clients are limited to those who have a membership only.
          2. The financial limit for transfers does not exceed the monthly salary or its equivalent, with a maximum amount of (50,000) riyals or its equivalent per month for individual clients, and not exceeding (500,000) riyals per year, with proof of monthly income provided.
          3. Financial transfer operations for businessmen do not exceed (500,000) riyals or its equivalent per year, with enhanced due diligence measures taken to verify the sources of wealth and the purpose of the financial transfers.
          4. The financial transfer amount does not exceed (1,000,000) riyals or its equivalent per year for corporate clients.
          5. It is allowed to receive financial transfer transactions (incoming) for transient customers (those who are not eligible to open a membership) from visitors holding temporary visas/residences, as well as pilgrims and Umrah performers, provided that the amount of a single financial transaction does not exceed (5,000) Saudi riyals or its equivalent, with a total not exceeding (50,000) Saudi riyals or its equivalent within a year, and provided that the requirements for dealing with transient customers are met. A copy of the passport, including the page showing the entry visa, must be obtained when conducting permitted transactions. Other financial transfer requirements should be observed, including providing additional details such as the address in the home country, contact person or entity in Saudi Arabia, and signature
          6. Ensure that the nature of the client's work and activities—whether a membership or transient—and their sources of funds and annual income are consistent with the volume of their financial transactions and the purpose and type of executed financial operations.
          7. Identify the ultimate beneficial owner who has complete or partial control over the membership or the financial transactions conducted by clients, and take the necessary steps to implement customer identification procedures and fulfill the due diligence requirements.
          8. Record all financial transactions conducted by clients in the client’s membership log, including detailed information about those transactions.
          9. Enhance the requirements for applying the Know Your Customer (KYC) principle and take necessary steps to meet the enhanced due diligence requirements for high-risk clients.
          10. Document all outgoing and incoming financial transfers made on behalf of clients, record them in the exchange records, and include the names of the senders and beneficiaries, transfer amounts, and dates, with these transactions automatically linked to the clients' identification numbers.
          11. Provide SAMA (Bank Supervision Department) with a monthly statement that includes all financial transfers conducted with financial institutions (banks and money exchange centers) both domestic and international, according to the form (Appendix No. 2).
          12. Do not allow receiving any transfer originating from a specific country and processing it through any money exchange center operating in the Kingdom to a beneficiary via a bank or money exchange center outside the Kingdom.
          13. Do not accept or receive any transfer for a beneficiary at a local bank unless the money exchange center has complete information about both parties to the transfer and processes it with full data.
          14. The financial transfer requirements specified in Rules Governing Anti-Money Laundering & Combating Terrorist Financing issued by SAMA must be adhered to.
          15. Obtain complete and accurate information about the remitter for outgoing transfers and retain it fully in the transfer message, including the following:
            (a)Required and accurate information about the remitter:
              - Name of the remitter.
              - Membership number of the remitter at the time of the transaction.
              - Address of the remitter; if not available, the official identification number (national ID for citizens, residency permit for expatriates), or date and place of birth.
              - The purpose of the transfer should be specified in detail.
              - Name of the beneficiary.
              - Account number of the beneficiary; if the beneficiary does not have an account, a unique reference number for the transaction should be included to allow tracking.
            (b)Required information about the ultimate beneficiary:
              - Name of the beneficiary.
              - Beneficiary's account number if this account is used for the transaction, or if no account exists, a unique identification number for the transaction to allow tracking.
          1. For incoming transfers, and considering the practices followed in the countries and financial institutions involved, complete information about the remitter must be obtained and attached in full with the transfer message as outlined in paragraph (15) above.
          2. When sending multiple international wire transfers from a single remitter as part of a consolidated transfer to beneficiaries in another country, all information related to the remitter and accompanying the wire transfer should be included with each individual international wire transfer. The consolidated transfer file (which consolidates the individual wire transfers) must contain complete and traceable information about the remitter.
          3. In the case of wire transfers lacking complete information about the remitter, money exchange centers operating in the Kingdom must implement effective procedures and take the following actions:
             -Obtain complete information from the bank, correspondent money exchange company, or remittance service provider. This applies to all local and international banks.
             -Refuse to execute the transaction and return the remittance if the correspondent does not respond.
             -If there is suspicion about the transaction and no response from the correspondent bank, report it to the Financial Intelligence Unit.
             -Document the decisions made in writing, including the reasons, and retain these records, both paper and electronic, for ten years in accordance with the Rules Governing Anti-Money Laundering & Combating Terrorist Financing issued by SAMA
             -The incoming wire transfers must include the name of the financial institution and the country of the originating remittance, as well as the name of the correspondent and the country. The correspondent must adhere to this requirement. If there is a change in the remitter's information, the money exchange center must notify the beneficiary.
          1. Enhance due diligence procedures when processing transactions related to politically exposed persons (PEPs) such as individuals in senior positions, leadership roles, and diplomats.
          2. Do not accept any outgoing or incoming transfers to organizations outside the Kingdom of Saudi Arabia, whether charitable or non-profit, except for those entities permitted by the Rules Governing the Opening Bank Accounts issued by SAMA.
          3. When implementing new electronic money transfer and payment systems, ensure that they have the capability to prevent and detect money laundering and terrorism financing.
          4. Adhere to transparency standards and ensure that financial transfer messages (accompanying both outgoing and incoming transfers) contain complete information about the remitter and the beneficiary.
          5. Continuously exercise due diligence towards clients sending and receiving transfers and audit the executed transactions throughout the duration of the relationship to ensure that the transactions align with the clients' activity level, including the source of income. It is the responsibility of the money transfer entity, whether foreign or domestic, to implement customer identification and due diligence procedures for the remitter.
          6. In cases where technical restrictions prevent the transmission of complete remitter information accompanying an international wire transfer with a related domestic wire transfer (during the period required to adapt payment systems), the intermediary money exchange center receiving the transfer must maintain a record containing all information received from the financial institution that issued the transfer for 10 years, in accordance with  the Rules Governing Anti-Money Laundering & Combating Terrorist Financing issued by SAMA. The response time to any inquiries from the correspondent bank or relevant authorities should not exceed 72 working hours.
          7. In cases of repeated information deficiencies and lack of cooperation from correspondent financial institutions, banks, money exchange centers, or money transfer service providers, money exchange centers operating in the Kingdom should evaluate their relationship with the bank, money exchange center, or company and consider restricting or terminating the relationship.
          8. In case of suspicion regarding the correspondent's transactions or relationship, or the money transfer service provider from the perspective of money laundering or terrorism financing, the Financial Intelligence Unit must be notified immediately, with documentation of these cases.
          9. Money Exchange centers operating in the Kingdom that are contracted with money transfer service providers must obtain complete information about the parties involved in the financial transfers conducted by these companies on their behalf.
          10. Money Exchange centers operating in the Kingdom must adopt effective procedures in all their dealings to ensure compliance with customer identification requirements and due diligence procedures, based on risk-based standards and relative significance. Enhanced due diligence must be applied to funds transferred from or to countries subject to warnings from the Financial Action Task Force (FATF).
          11. Monitor all transactions (both outgoing and incoming transfers) to detect patterns of unusual activities that lack a clear economic or legal purpose. Examine the background and purpose of such transactions as thoroughly as possible, and document the findings in writing.
          12. When there are reasonable grounds to suspect that clients' funds, operations, and transactions represent proceeds from criminal activities or are linked to or related to money laundering or terrorism financing, they must be reported to the Financial Intelligence Unit.
          13. For local transfers (within the Kingdom), it is necessary to ensure that the sender's name and account number are recorded and saved in the money exchange center's system for quick retrieval if requested by the relevant authorities. Additionally, it is required to verify the identity of the recipient of the internal transfer (incoming) in accordance with the Rules Governing the Opening Bank Accounts and the General operational Guidelines.
          14. Check the names of individuals, entities, and banks initiating and receiving wire transfers against lists of individuals and entities whose assets must be blocked, rejected, or frozen according to local supervisory authority instructions, as well as international lists such as those from the United Nations, and take the necessary actions accordingly.
          15. Check the names of individuals, entities, and banks initiating, intermediary in, or benefiting from wire transfers against international lists such as those from the Security Council, the United Nations, the Financial Action Task Force (FATF), etc., and take the necessary actions accordingly.
        • 3-3) Draft Cheques

          Cease the handling of purchasing draft cheques transactions.

      • 4) Supporting Activities for Banking Operations

        • 4-1) Cross-Border Transfer of Cash and Transferable Financial Instruments

          Compliance with the provisions of the Law of Transporting Money, Precious Metals, and Valuable Documents, issued by Royal Decree No. (M/81) dated 18/10/1428 and its implementing regulations issued by the Minister of Interior’s decision No. 4814 dated 09/10/1433H is required. In accordance with the instructions from SAMA regarding the requirements for transferring cash and financial instruments into or out of the Kingdom, licensed money exchange centers may transfer money directly or through private money transfer companies, whether via shipping or postal parcels, for their own purposes only. Money exchange centers or companies specialized in cash transport must complete the disclosure form for financial institutions when transferring cash across borders exceeding the disclosure limit, adhering strictly to security and safety requirements and in accordance with the Rules Governing Money Changing Business were issued by Ministerial Decision No. 1357 dated 01/05/1432H and any additional instructions from SAMA.

          To implement this,  money exchange centers must follow these organizational steps:

          1. Licensed money exchange centers in the Kingdom are permitted to import and export cash and transferable financial instruments in Saudi Riyals or other foreign currencies across the Kingdom's borders.
          2. The activities of licensed money exchange centers are limited to importing and exporting cash in Saudi Riyals or other foreign currencies across the borders for their own currency exchange activities only. They are not permitted to transfer cash on behalf of others.
          3. money exchange center owners must notify customs officers at border crossings of the cash and transferable financial instruments they carry and wish to bring into or out of the Kingdom for disclosure purposes.
          4. These procedures apply to all entities involved in the transfer, including licensed  money exchange operations and their direct and indirect employees, shipping companies, and specialized cash transport companies (private security firms) or postal transport companies.
          5.  Transferable payment instruments with similar characteristics to cash are subject to these procedures.
          6. Retain documents related to the purchase or import and the sale or export of foreign cash in a specific file for examination by SAMA upon request.
          7. Money exchange centers must record and maintain data and information (Information Center) related to cash and transferable financial instruments moving across borders for tracking and study purposes.
          8. Provide SAMA's Banking Supervision Department with a detailed monthly report on the money transferred across the borders, including its sources and details, according to the attached form (Appendix No. 3).
          9. Money exchange centers must establish organizational procedures for the transfer of cash and transferable financial instruments to and from them, including:
            a.Agreeing on the preparation and transportation of cash and preparing it in suitable methods for both parties, facilitating the transfer, counting, and verification of its safety.
            b.Ensuring strict adherence to security measures for the transportation of cash and transferable financial instruments and following the minimum requirements in the security safety guide and modern, appropriate transport methods.
            c.Verifying the legitimacy of the entities from which and to which transfers are made and ensuring the necessary licenses for conducting banking operations.
            d.The sending and receiving of cash and its transportation within the Kingdom must be limited to Saudi employees.
            e.Local money exchange centers are responsible for verifying the legitimacy and legality of the sources and uses of cash and transferable financial instruments they transport.
        • 4-2)Money Exchange centers' Relationships with Correspondent Banks

          4-1-2) External Correspondent Banks

          The relationships between Money exchange centers and correspondent banks, established for the purpose of providing services from one bank or money exchange center (the sender) to another (the recipient) through correspondent accounts, are regulated. Through these accounts, financial institutions can perform transactions for themselves and their clients in countries where they do not have a physical presence. Correspondent services include cash management, international wire transfers, cheque collection, and services related to foreign currencies, often involving large amounts of money and numerous transactions.

          Money exchange centers seeking to establish banking correspondent relationships must take organized measures to prevent the misuse of correspondent accounts, including the following:

          1. Deal only with licensed money exchange centers and banks under the supervision of a central bank or a similar regulatory authority.
          2. Rely on reliable information sources to verify the legitimacy of the correspondent bank or money exchange center and gather sufficient information about the banks or money exchange centers with which financial transactions are desired, including details about the management and nature of their operations, and document this information.
          3. Limit financial transactions in correspondent accounts to currency exchange activities (buying and selling currencies and transfers) as per the licensed activity, and prohibit engaging in any other commercial or personal activities in the name of the money exchange center.
          4. Open correspondent bank accounts only after obtaining approval from senior management (CEO/General Manager).
          5. Operate correspondent bank accounts directly by the account holder without involving third parties. Transactions should be limited to financial dealings related to correspondent activities, and the accounts should not be used for other purposes.
          6. Ensure that the correspondent bank or money exchange center is not listed on any local or international sanctions or blacklist, including those issued by the United Nations.
          7. Obtain a confirmation certificate of compliance with the Rules Governing Anti-Money Laundering & Combating Terrorist Financing for all correspondent bank and money exchange center relationships, including the following information:
            a.Business location, main activities, and management.
            b.Compliance with anti-money laundering and counter-terrorism financing standards issued by the Financial Action Task Force (FATF).
            c.Adherence to anti-money laundering, counter-terrorism financing, and know-your-customer (KYC) policies and procedures.
            d.Presence of procedures for reporting suspicious transactions.
            e.The correspondent money exchange center must renew and update its anti-money laundering compliance certificate every three years.
          1. Money exchange centers must implement adequate ongoing due diligence procedures concerning correspondent banking relationships and document the anti-money laundering and counter-terrorism financing responsibilities of both the correspondent and the recipient, including existing correspondent relationships.
          2. Prepare separate agreements for using local bank accounts for currency transactions (buying and selling currencies, and financial transfers), and record these financial transactions in dedicated records with detailed information to be submitted to SAMA (Banking Supervision Department).
          3. When reviewing a relationship with a correspondent and considering terminating it, alternative correspondent banks should be sought to avoid disrupting transfer services to the concerned country, unless continuing the relationship poses high risks.
          4. Monitor relationships with correspondent banks to ensure their legitimacy and verify whether their activities and anti-money laundering and counter-terrorism financing controls align with those confirmed at the beginning of the relationship. Money exchange centers must continuously obtain anti-money laundering and counter-terrorism financing compliance certificates as per the the Rules Governing Anti-Money Laundering & Combating Terrorist Financing.
          5. Ensure that information exchanged with correspondent banks is subject to banking confidentiality and is not used for unauthorized purposes.

          4-2-2) Money Transfer Service Providers

          SAMA instructions regarding financial transfer services require licensed money exchange centers to offer money transfer services to their clients efficiently and easily. They are encouraged to implement marketing programs to attract customers, introduce more competitive new money transfer channels, and some money exchange centers have contracted with money transfer service providers. Given the importance of adhering to contracting regulations with these companies, the following should be included:

          1. The company to be contracted with must be internationally recognized and licensed by the regulatory authorities of its home country.
          2. The money exchange center must request prior approval from SAMA to contract with money transfer service providers, submitting a request file that includes a draft of the final contract to be signed with the company, a company profile, and a certificate of compliance with anti-money laundering and counter-terrorism financing regulations.
          3. The operations of the contracted money transfer service providers must be supervised and monitored by the money exchange center through which these companies operate.
          4. Money transfer must be the core activity of the company.
          5. The company must have adequate policies and procedures for combating money laundering, counter-terrorism financing, fraud, and financial embezzlement.
          6. The contract with the money transfer service provider must include the following:
            a.Compliance with local regulations, SAMA instructions, rules, and circulars.
            b.Adherence to local, regional, and international requirements, including compliance with international decisions, United Nations lists, and warning notices from international organizations, such as warning notices issued by the Financial Action Task Force (FATF).
            c.Ensuring that the information received is subject to banking confidentiality and used only for authorized purposes.
            d.Implementation of all necessary precautionary measures for providing these services and ensuring their effectiveness in detecting suspicious transactions early.
            e.Strict adherence to the Know Your Customer principle and continuous due diligence regarding clients and the sources and uses of transferred funds.
            f.Neither party should impose exclusivity in transactions between the money exchange center and the service provider.

          4-2-3) Relationship of the Money Exchange Center with Banks and Other Local Money Exchange Centers

          Money exchange centers must record all financial transactions in accounting records with banks and other licensed money exchange centers within the Kingdom, retain receipts for these transactions, and establish banking relationship contracts for currency purchase and sale, as well as for financial transfers to local bank client accounts. Additionally, when money exchange centers licensed for transfer activities act as intermediaries between clients and banks, they must provide all accompanying information related to the transfer to the bank.

          money exchange centers must open specific accounts for conducting banking operations in local banks according to the following procedures:

          1. Use current accounts in local banks designated for the purposes for which they were opened.
          2. A money exchange center is permitted to open one main account dedicated to its banking operations, with sub-accounts (one for expenses, another for financial transactions related to currency exchange, and a third sub-account for transfers to licensed  money exchange agents in any local banks).
          3. Opening business accounts for the money exchange center in local banks is allowed from the general administration of the money exchange center and requires direct approval from the owner or general manager of the money exchange center.
          4. Adhere to the account opening agreement with local banks and avoid breaching it.
          5. Restrict the use of bank accounts to the purposes designated for the money exchange center's operations according to its license.
          6. Money transfers within and outside the Kingdom for the money exchange center’s operations should be done only after verifying all data in the required forms. These accounts cannot be used for purposes other than the designated banking operations of the money exchange center.
          7. Money transfers from business accounts are restricted to the owner of the money exchange center or executive managers directly or through Saudi representatives working at the money exchange center.
          8. These accounts must be subject to dual and ongoing oversight by the owner(s) of the money exchange center and the general manager or compliance officer.
          9. Restrict cheque issuance to the expense account and currency exchange account to the first beneficiary.
          10. Transfers to local bank clients from the money exchange center's transfer accounts are allowed (for those licensed by SAMA for transfers), provided the source of funds and purpose of the transfer are clarified. In the case of processing an incoming transfer, full details of the transfer must be provided.
          11. Acceptance of cash deposits, cash withdrawals, and cheque withdrawals is not allowed. Issuance of cheque books, ATM cards, or credit cards for transfer accounts is not allowed, and any previously issued cheques or cards must be canceled. Opening remittance membership accounts is entirely prohibited for such accounts.
          12. Use the expense account solely for paying government bills or services for the money exchange center and its branches.
          13. Cash deposits, remittances, and cheques issued and received for the expense account are permitted, provided they are used for the purposes of the money exchange center and in its name, and match the nature of the activity.

           

      • 5) Security Systems and Anti-Counterfeiting Devices

        • 5-2) Counterfeit Currency

          All money exchange centers must implement precautionary measures for handling both local and foreign currencies by:

          1. Acquiring currency counting machines with specifications capable of detecting counterfeit money.
          2. Developing and training employees who handle cash directly through organizing counterfeit detection courses to enhance their efficiency.
          3. Obtaining foreign currencies from reliable sources.
          4. Promptly reporting to security authorities and notifying SAMA upon discovering counterfeit currency.
          5. Complying with instructions issued by relevant security authorities regarding handling counterfeit currency.
        • 5-3) Insurance on Cash

          1. Money exchange centers must maintain insurance with a licensed insurance provider in the Kingdom, covering operational risks such as embezzlement, theft, counterfeiting, burglary, fire, etc.
          2. The insurance must cover all properties belonging to the money exchange center, including cash, transferable financial instruments, foreign currencies, traveler's cheques, and bank cheques.
          3. The insurance coverage should be proportionate to the amount of cash held and the financial transactions conducted, including buying and selling foreign currencies, money transfers, and cash transportation.
      • 6) Reporting

        1. In the case of suspicion of money laundering or terrorism financing conducted or attempted by a client of the money exchange center, it is necessary to promptly report to the Financial Investigation Unit using the designated reporting form (Appendix No. 4). The report should be sent by fax to the following numbers: (0114127615) and (0114127616). For inquiries, use the number (0114128100). The report should include a copy of the client's identification or passport and any details available about the transaction.
        2. For suspicions of other crimes such as theft, embezzlement, forgery, or counterfeiting, report to the nearest police station and provide a copy of the report to the Financial Crimes Department at the Banking Supervision Division of SAMA. Detailed records of the report must be maintained.

         

      • 7) Employment and Training

        • 7-1) Employment

          The money exchange center must adhere to the instructions of SAMA, the Ministry of Labor, and other relevant supervisory and regulatory bodies regarding all regulations, instructions, and rules related to private sector employees as follows:

          1. Compliance with employing citizens and the requirements for contracting with recruitment service companies outlined in SAMA Circular No. 341000068320 dated 1434/06/03. This includes ensuring job localization in compliance, anti-money laundering, remittances, cash handling, and security departments, in line with royal directives and instructions from relevant entities such as the Ministry of Interior, Ministry of Labor, and the Saudi Central Bank.
          2. Adherence to regulations regarding working hours, vacations, and official holidays, except for money exchange centers operating within the boundaries of the Holy Mosques, which may follow specific working hours during Umrah and Hajj seasons.
          3. Compliance with Ministry of Labor regulations concerning labor laws and employee regulations.
          4. Adherence to SAMA's guidelines regarding the requirements for appointments to senior positions and criteria for employee selection.
          5. Provision of an organizational and job structure that includes all departments and positions, including senior positions, specifying the roles, duties, and responsibilities of each individual.
          6. Appointment of a manager for the money exchange center who is academically and professionally qualified, has banking experience, possesses adequate financial and administrative expertise, has a good reputation, and has not been convicted of any crime affecting honor or morals.
          7. Submission of a semi-annual detailed report to SAMA regarding the number of Saudi employees, the rate of job localization, and the related plan (Appendix No. 5).
        • 7-2) Training and Qualification

          The money exchange center must:

          1. Ensure that employees have the necessary educational qualifications and thorough understanding of the work they perform.
          2. Continuously train and educate employees to enhance their knowledge and understanding of banking operations and provide them with all new policies and procedures in this field.
          3. Ensure that all employees receive basic training related to the tasks they will perform before being appointed.
          4. Train those responsible for administrative and technical work, including administrative officials, on compliance and control programs, and provide them with information on the risks associated with banking operations and their relation to serious crimes such as money laundering, terrorism financing, embezzlement, forgery, and counterfeiting on a regular basis.
          5. Provide SAMA (Banking Supervision Department) with a quarterly statement on the employees who have been trained and the courses they have attended (Appendix No. 6).
      • Appendices

        Appendix (1) Monthly Statement of Foreign Currency Sales and Purchases

        Foreign currency sales and purchases for the month of ___________________ of the year 20____.

        Sales of Foreign Currencies to:

        Amount (SAR)

        1. Outside the Kingdom

         

        2. Local Banks

         

        3. Local  Money Exchange Centers

         

        4. Individuals within the Kingdom

         

        5. Others

         

        Total

         

        Purchases of Foreign Currencies from:

        Amount (SAR)

        1. Outside the Kingdom 
        2. Local Banks 
        3. Local  Money Exchange Centers 
        4. Individuals within the Kingdom 
        5. Others 

        Total

         

         

         


        Appendix (2) Monthly Data on Outgoing and Incoming Transfers for Money Exchange Centers Category (A)

        Outgoing and Incoming Transfers

        Amount (SAR)

        Outgoing Transfers

         

        Outgoing Cheques

         

        Incoming Transfers

         

        These data should be sent monthly at the end of each Gregorian month using one of the following methods:

         


        Appendix (3) Statement of Cash Movement In and Out Across Borders

        Company / Institution: .............. (Money Exchange License No.: ....../P)

        No

        Transaction Type (incoming/outgoing)

        Date

        Name of Border Execution

        Currency Name

        Amount (Foreign Currency)

        Amount (Saudi Riyal)

        Source ( correspondent Bank or  money Exchange center)

                
                
                
                
                
                
                
                
                

         

         


         

        Appendix (4): Reporting Template for Suspicious Transactions

        Suspicious Transactions Report Template

        Money Exchange Center Logo

        Suspicious Transactions Report

         

        Confidential

        Reference Number 
        Date: / / Hijri 
        Corresponding to: / / Gregorian 
        Attachments 

         

        Information about the Reporting Entity

        Financial institution (Money Exchange Center)

        Money Exchange Center Name:

        City

        Branch

        Phone Number

            

         

        Contents of the Report
        Type of Activity/TransactionCashBranchTransferOther Transactions
            
        Transaction Execution DateTimeDayDateMonth/Year
             
        Total AmountIn NumbersIn WordsCurrency Type
             
        Transaction ExecutorMembership Number Branch Name/NumberBank
             
        Reasons for Suspicion    

         

        Beneficiary

        Name

        ID Card Number

        Nationality

        Country

        City

         

         

         

         

         

        Membership Number

        Branch Name/Number

        Beneficial Entity Name

         

         

         

         

         

        Additional Information: ________________________________________

        You will find above the report on suspicious transactions that we present for your review and to take the appropriate decision regarding it.

        Official Stamp:                                                    Signature:

         


        Appendix (5) Employee Data

        NoNames of Senior Management and Responsible OfficialsNumber of Employees (Direct Employment through the Money Exchange Center)Number of Employees (Employment through a Third Party via a Recruitment Company)Total

        Localization Rate

         

         

        Citizen

        Resident

        Citizen

        Resident

        Citizen

        Resident

          
                 
                 

         

        No

        Names of Senior Management and Responsible Officials

        Job TitleType of Contract
         

        Citizen

        Resident

             
             

         

        No

        Name of the Third Party Recruitment Service Provider

        Type of Activity as per the Commercial Register

        Number of Employees

        Citizen

        Resident

             
             

         


         

        Appendix (6) Training Courses Statement

        No.

        Employee Name

        Job Title

        Training Course Title

        Course Provider

        Venue

        Date of Training

               
               
               
               
               
               
               
               
               
               
               
               
               
               

         


        Appendix (7) Links and Attachments

        Links and Attachments

        Subject

        Related Website Address

        Saudi Anti-Money Laundering Law and Its Implementing Regulations

        sama.gov.sa

         

         

        Recommendations Issued by the Financial Action Task Force (FATF)

        fatf-gafi.org/documen 

         

         

        Member Countries of the Financial Action Task Force (FATF)

         fatf-gafi.org/pages

         

         

        Basil Committee Standards

        bis.org/publ

         

         

        UN Security Council Resolutions

        un.org/sc/committees

         

         

        Other Useful Sources and Links

        menafatf.org

    • Law of Transporting Cash, Precious Metals, and Valuable Documents

      No: M/81 Date(g): 29/10/2007 | Date(h): 18/10/1428Status: In-Force

      Translated Document

      • Article 1

        The following terms and phrases, wherever mentioned herein shall have the meanings assigned thereto, unless the context otherwise requires:

        1.  Cash: Any currency officially circulating in the Kingdom; whether banknotes or coins.
        2. Precious metals: All valuable natural and industrial metals and stones, which may be converted into cash. 
        3. Valuable documents: All documents of cash value such as cash checks for the currency of the Kingdom of Saudi Arabia and other currencies of all denominations, stocks, bonds, sukuk, and other securities. 
        4. Activity: practice the service of transporting cash, precious metals, and valuable documents.
      • Article 2

        1. The provisions of this Law shall apply to the following:

           a) Financial institutions and companies operating in the kingdom such as banks, currency exchange businesses, or investment or insurance institutions and companies whose nature of work requires the transport of cash, precious metals, and valuable documents.

           b) Precious metal factories, showrooms, and retail outlets in the Kingdom, with respect to transporting precious metals.

           c) Saudi establishments and companies licensed to provide private security services when transporting cash, precious metals, and valuable documents.

        2.  The transport of money, precious metals and valuable documents may only be licensed to the entities referred to in paragraph (1) of this Article, provided that a special security department is available in the entities mentioned in paragraphs (a) and (b) of the aforementioned paragraph.
      • Article 3

        1. Applications for the issuance and renewal of licenses for the activity shall be submitted to the General Directorate of Public Security and the Implementing Regulations of this Law shall specify the required documents and conditions. 
        2. License applicants shall, upon issuance or renewal of licenses, pay an annual fee of one thousand riyals and the Implementing Regulations shall specify the conditions thereof.
      • Article 4

        The Minister of Interior, or his delegates, shall issue a decision approving the applicant's engagement in the activity, and accordingly the Director of the General Directorate of Public Security shall issue the license for three renewable years. The license shall specify the province or provinces for practicing the activity.

      • Article 5

        All entities licensed to practice the activity shall conclude an insurance policy with one of the insurance companies licensed to operate in the Kingdom covering the value of all movables.

      • Article 6

        All entities that have obtained a license to practice this activity shall inform the concerned authority at the General Directorate of Public Security of any transfer operation in which the value of movables exceeds five hundred thousand riyals in due time prior to commencement thereof and shall comply with the proposed route and not change it without prior coordination with said authority. Cash shall only be received and delivered during the official working hours of banks and currency exchange institutions and companies.

      • Article 7

        Without prejudice to the statutory powers of other authorities, licensees shall, with respect to the activity, be subject to the direct oversight of the competent public security departments in various provinces pursuant to the Implementing Regulations of this Law.

      • Article 8

        Subject to relevant conditions provided for in the Law of Private Security Services, any person in charge of the management of the licensed entities referred to in Article 2(1)(a and b) of this Law or the management of security departments in the licensed entities referred to in Article 2(1)(c) of this Law shall meet the following requirements:

        1.  Be a Saudi citizen of not less than 25 years of age.
        2.  Hold a university degree or equivalent.
        3.  Not have been sentenced to a hadd punishment or for a crime impinging on honor or integrity, unless rehabilitated.
      • Article 9

        A crew member of a vehicle used in the activity shall meet the following requirements:

        1. Be a Saudi citizen of not less than 20 years of age and not more than 50 years.
        2. Hold no less than a general secondary school certificate or equivalent.
        3. Not have been sentenced to a hadd punishment or for a crime impinging on honor or integrity, unless rehabilitated.
        4. Be physically fit.
        5. Have completed the necessary training requirements in centers approved by the General Directorate of Public Security.
      • Article 10

        Crew members of vehicles used in the activity shall take all necessary measures to ensure the safety of transported items. They may not leave such vehicles during transportation whether within or outside city limits.

      • Article 11

        Crew members of vehicles used in the activity shall be equipped with necessary weapons as specified by the Minister of Interior based on powers vested in him by the Law of Weapons and Ammunition.

      • Article 12

        1. The General Directorate of Public Security shall issue a license for each vehicle used in the activity, provided that such vehicles, whether imported or locally manufactured, are armored and conform to the specifications stated in the Implementing Regulations of this Law.

         2. Armored vehicles used in the activity may not be imported, manufactured, or sold without the approval of the General Directorate of Public Security.

      • Article 14

        The Minister of Interior shall form one or more committees in the provinces, each comprising three members, one of whom holds a legal or regulatory qualification. Such committees shall be in charge of reviewing violations of this Law and determining appropriate penalties in accordance with Article 15 of this Law.

      • Article 15

        A violator of the provisions of this Law shall be subject to one or more of the following penalties: 

        1. A warning.

        2. A fine not exceeding one hundred thousand riyals. 

        3. Temporary suspension of the license.

        4. Revocation of the license.

        Any person against whom the penalty decision has been issued without warning may appeal before the Board of Grievances.

      • Article 16

        The Minister of Interior shall issue the Implementing Regulations of this Law within 90 days from the date of its publication in the Official Gazette. The Implementing Regulations shall enter into force from the date this Law enters into force.

      • Article 17

        This Law shall be published in the Official Gazette and shall enter into force 90 days from the date of its publication. This Law shall repeal all provisions conflicting therewith.