Based on paragraph (C) of Article Five of the Regulations governing the practice of money exchange issued by the Minister of Finance Decision No. (4686) dated 21/11/1441 AH, which states, "It is the responsibility of the exchange center’s management to ensure compliance with these regulations, and each center’s management must approve policies, procedures, and operations that ensure adherence to the instructions issued by the Central Bank," and following Central Bank Circular No. 45052096 dated 11/08/1445 AH regarding raising the level of preparedness and readiness of exchange centers during the Ramadan and Hajj seasons of 1445 AH.

Therefore, the Central Bank confirms that exchange centers located in Mecca, Medina, King Abdulaziz International Airport, and the Hajj City in Jeddah must comply with the points outlined in Annex No. (1) as a minimum requirement.

Based on the powers vested to SAMA under its law issued by Royal Decree No. (M/36) dated 11/04/1442H, and The rules regulating money changing business issued by Ministerial Decision No. (4686) dated 21/11/1441H, and referring to Paragraph (B) of Article 14 and Paragraph (B) of Article 21 of the rules regulating money changing business, and in accordance with The requirements for appointments to senior positions in financial institutions under the supervision of SAMA, and The code of conduct and work ethics in financial institutions issued by SAMA.

Given the observations that some exchange center employees have been holding two positions simultaneously at more than one exchange center, in addition to non-compliance with SAMA's instructions regarding job localization, exchange centers are required to adhere to the following:

First: Employees of exchange centers must not hold two positions simultaneously at more than one exchange center. Exchange centers must ensure compliance with this requirement and take necessary corrective actions within a period not exceeding six months from the date of this notice and inform SAMA accordingly.

Second: Adhere to SAMA Circular No. (21755/41) dated 06/04/1440H, which restricts all operational roles to Saudi citizens, and refrain from applying to any other entity for permits to employ non-Saudis.

Please review and act in accordance with this notice from the date of issuance. Exchange centers are required to take the necessary regulatory actions to implement and comply with the provisions of this circular.

Based on the powers vested to SAMA under The law issued by Royal Decree No. (M/36) dated 11/04/1442H, and The rules regulating money changing business issued by the Minister of Finance Decision No. (4686) dated 21/11/1441H, and following Circular No. (35217/41) dated 06/06/1440H regarding the provision of annual and quarterly financial statements to SAMA, and annual reports on internal control laws, and with reference to Paragraph (A-7) of Article14 and Paragraph (C) of Article 31 of the rules regulating money changing business .

In light of the observations regarding the application of the aforementioned regulations, and within the framework of SAMA’s ongoing efforts to develop the money exchange sector in the Kingdom, money changers are required to comply with the following:

1. In accordance with Paragraph (A/7) of Article 14 of the rules, an independent periodic assessment must be conducted—at least annually—to evaluate the operations of the money changer, including its automated systems, and the center’s adherence to its internal policies and procedures, with the assessment completed by the end of July each calendar year.
2. Compliance with Paragraph (C) of Article 31 of the rules, which requires the external auditor to evaluate the internal control systems, and the report should include any observations regarding the center’s adherence to the rules regulating the money exchanging business.

Please be informed and act accordingly, with acknowledgment of receipt within one week from the date of this notice. SAMA will take all necessary regulatory actions against money changers that violate the provisions of this circular.
 

Based on Paragraph (B) of Article Fourteen of the rules regulating money changing business by Ministerial Decision No. (4686) dated 21/11/1441 H, and in line with SAMA's ongoing efforts to develop the money exchange sector in the Kingdom, a standardized pricing model has been developed for point-of-sale (POS) services for transactions made via Mada cards at money changers.

We would like to emphasize that all money changers must provide point-of-sale (POS) services and activate it as of its date for the benefit of customers. Failure to comply with and adhere to these regulations and instructions will result in SAMA implementing statutory penalties.

Based on Article Thirty-One of the rules regulating money changing business issued by Ministerial Decision No. 4686 dated 21/11/1441 H, which states that the money changer must provide SAMA upon its request and at the times it specifies, with data or reports, and Paragraph (B) of Article Fourteen of the same regulations, which grants SAMA the authority to issue any instructions it deems necessary to implement the supervision and control requirements for Money Changing Business:

Therefore, we inform you of the update to the Financial Statements Comparison Template* to be provided to SAMA periodically via email starting from the fourth quarter of 2020, as follows: **
 

1. Provide SAMA with the quarterly financial statement comparison template within 35 days of the end of the quarter.
2. Provide SAMA with the annual financial statement comparison template within 65 days of the end of the year.

The template will be sent to you via email and SAMA emphasizes the need to adhere to the above update, noting that the bank will take all legal measures against money changers that violate the provisions of this circular.   

 * The template has been updated in accordance with Circular No. (44006369), dated 25/01/1444 H, corresponding to 22/08/2022 G.

 ** Please review Circular No. (44006369) dated 25/01/1444 H, corresponding to 22/08/2022 G, regarding the update of supervisory data templates for money changers and their submission through the (RMS) system.
 

Based on The provision of clause (3) of paragraph (a) of Article Twenty-Nine of the rules regulating money changing business issued by the Minister of Finance's Resolution No. (4686) dated 21/11/1441 H, which states: "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: 3- a list containing staff data."

Accordingly, we inform you that the employee data collection form has been updated*, and it must be submitted to SAMA on a quarterly basis within fifteen days from the end of the quarter, starting from the fourth quarter of 2020. The updated form will be provided to you via email.**

SAMA emphasizes the importance of complying with the above-mentioned update, noting that SAMA will take all regulatory measures against money changers that violate the provisions of this circular.
 

 *  The form was updated pursuant to Circular No. (44006369), dated 25/01/1444 H, corresponding to 22/08/2022.  

 **Please review the Circular No. (44006369), dated 25/01/1444 H, corresponding to 22/08/2022, regarding the update of supervisory data templates for money changers and their submission through the (RMS) system.

Further to SAMA Circular No. 21755/41 dated 06/04/1440 H, which restricts all positions in the exchange centers to Saudi citizens and emphasizes the need to train Saudi employees through programs appropriate to the nature of their work, provided that the time period for Saudization of all jobs does not exceed one year from its date, and based on the inquiries received by SAMA regarding the inclusion of son/daughter of Saudi Citizen in Saudization based on the Ministry of Labor and Social Development’s decision.

Please be informed that categories treated as Saudis for Saudization purposes should be counted accordingly, as per the regulations issued by the Ministry of Labor and Social Development. This information must be disclosed in the data submitted to SAMA. Exchange centers are required to ensure compliance with and verification of the guidelines issued by the Ministry of Labor and Social Development in this regard.
 

Further to the instructions of SAMA communicated under Circular No. 53506/198 dated 13/04/1440H regarding the mandatory use of secure cash transport containers by cash transport companies, banks, and currency exchangers during the receipt and delivery of cash from branches, cash centers, remittance centers, currency exchangers, and the retail sector, and in light of SAMA's commitment to encouraging developments in the financial sector and enhancing security and integrity measures,

You will find the regulations and procedures for compensating Saudi currency marked with security inks due to technical and human errors, along with the related forms.

For your review and implementation effective immediately. The central bank will conduct field visits to verify compliance with these instructions.

Further to the Guide to Organize Operational Procedures for Money Exchange Centers issued by SAMA in February 2015 regarding customer acceptance policies and procedures for verifying national ID.

We inform you that SAMA has received a letter from His Royal Highness the Minister of Interior, No. 199974 dated 10/09/1440H, which includes approval to exempt customers of money exchange centers at airports who are traveling outside the Kingdom from providing their national ID for transactions. Instead, they may present their passport and boarding pass, which should be matched with the customer’s name.

Based on the powers granted to SAMA under paragraph (C) of Article Fifteen of The rules governing money changing business issued by Ministerial Decision No. (1357) dated 01/05/1432 H, which states that "The Central Bank may issue any instructions deemed necessary for implementing supervisory and regulatory requirements on money exchange activities".

In order to achieve the objectives of the kingdom's Vision 2030, SAMA emphasizes that all positions in the exchange sector must be restricted to Saudi citizens. It is essential to train Saudi employees and enroll them in training programs suitable for their roles. Money exchange institutions and companies must immediately start implementing the necessary measures to ensure full compliance with this circular and provide us with a Saudization plan for all positions within two weeks from the date of this notice. The complete Saudization of all positions must be achieved within one year from this date. Please note that SAMA will take all necessary regulatory actions against institutions and companies that do not comply with these requirements.

Based on paragraph (c) of Article 15 of the Rules Governing Money Changing Business-1432 issued by the Minister of Finance's Resolution No. 1357 dated 01/05/1432H, which grants SAMA the authority to issue any instructions deemed necessary to implement supervisory and regulatory requirements for money exchange operations.

In line with SAMA’s continuous efforts to develop the money exchange sector in the Kingdom and update certain procedures related to the transaction of money exchange institutions and companies, SAMA wishes to emphasize full compliance with the provisions of the rules governing money changing business, as well as all related laws and instructions, and adherence to the following:

1. Retention of CCTV surveillance recordings for a minimum of one year (12 months).
    
2. Allowing customers (account holders), after verifying the necessary legal documents, to obtain account statements detailing executed transactions upon request.
    
3. Retaining all documents and records related to customer transactions (whether originals or copies) in a secure place for at least ten years from the date of the transaction, with electronic archiving for easy access when needed.
    
4. Recording the residential or national address upon establishing the relationship.
    
5. Prohibiting the deletion of any transaction or account, ensuring that all details remain accessible through the automated system.
    
6. Establishing business continuity plans and ensuring the readiness of backup sites (Disaster Recovery), with periodic effectiveness testing to ensure the plan can be executed without difficulties, to maintain efficient and effective transactions.

SAMA emphasizes that money exchange companies and institutions must immediately begin taking the necessary measures to ensure full compliance with the provisions of this circular within four months. SAMA will take all legal actions against non-compliant  money exchange companies and institutions that fail to meet the requirements outlined in this circular.

The central bank has learned that some licensed exchange dealers are engaging with unlicensed practitioners in various forms and conducting currency import transactions on behalf of those unlicensed. Given the risks associated with such practices, the central bank requests that everyone refrain from dealing with unlicensed practitioners in any capacity. Continuing to engage with any such individuals in any manner will result in the revocation of the license issued by the central bank, in addition to facing penalties outlined in the decision of His Excellency the Minister of Finance and National Economy No. 920/3, dated 16/02/1402 AH.

Therefore, we hope that everyone will adhere to the instructions.

Based on Article Eighteen of the rules governing money changing business issued by Ministerial Decision No. (1357) dated 01/05/1432 H, which stipulates that "each exchange center must appoint an external auditor licensed and accepted by SAMA to audit and review its accounts annually...".

Therefore, we hope to communicate with your external auditors to provide us with the accounting standards they follow when auditing and reviewing the financial statements.

Based on the provisions of paragraph (a) of Article 15 of The rules governing money changing business issued by the Minister of Finance's Resolution No. 1357 dated 01/05/1432H, which stipulates that anyone licensed to practice currency exchange must provide SAMA with all the data it requests at any time, and paragraph (c) of the same article, which grants SAMA the authority to issue any instructions it deems necessary to implement supervisory and regulatory requirements for currency exchange transactions. Furthermore, Article 17 states that every exchange institution must maintain regular accounting records documenting its transactions in accordance with the requirements set by SAMA and must follow the accounting standards specified when preparing its financial statements. The exchange institution must also provide SAMA with the financial data mentioned in the article, and SAMA may request any other information or data it deems necessary to verify the soundness of its transactions and compliance with these regulations.

Therefore, you are hereby informed that all exchange institutions must submit monthly data to SAMA regarding the movement of cash inflows and outflows to and from the Kingdom through border crossings (land, air, and sea), in accordance with the attached statement.

Company/Institution: .............................. (Currency Exchange License No.: ........./S)

Statement of Cash Inflows and Outflows Through the Border Crossings in the Kingdom
 

Please review Section Six of the regulations governing the practice of currency exchange activities regarding data and reports.

In order to serve and develop the Saudi economy, and to promote the Saudi Traveler's Checks Company as a national entity established with the approval of the central bank and under its supervision for the purpose of issuing traveler’s checks in Saudi riyals within the Kingdom, it is noteworthy that the checks issued provide numerous services and conveniences for citizens, residents, travelers, and pilgrims.

The central bank hopes for your cooperation in encouraging the use of these checks by facilitating their sale and purchase, and ensuring their cashing when presented to you. Acceptance of these checks as a substitute for cash aligns with the provisions of Article Three of His Excellency the Minister of Finance and National Economy's Decision No. 3/920, dated 16/02/1402 AH, regarding the regulation of exchange transactions.

We also hope you will confirm receipt of this circular and disseminate it to your branches operating in the Kingdom for implementation.

Based on paragraph (c) of Article II of the Rules Regulating Money Changing Business issued by the decision of His Excellency the Minister of Finance No. (4686) dated 21/11/1441 H, which stipulated that one of the objectives of these rules is to expand the spread of Money Changing Business, facilitate its provision, and enhance financial inclusion, and paragraph (a) of Article Twenty-Three, which stipulates that "The Money Changer shall obtain SAMA’s non-objection before 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." Based on SAMA's supervisory and regulatory role over financial institutions, and in continuation of its efforts to contribute to achieving the content of Saudi Vision 2030, regarding the expansion of the provision of Hajj and Umrah services. 

Accordingly, SAMA hopes that money changers in the form of a company will study the opening of additional branches to engage in the activity of buying and selling foreign currencies and trading them inside the Kingdom in the central areas of the Two Holy Mosques, King Abdulaziz International Airport in Jeddah and Prince Mohammed bin Abdulaziz International Airport in Madinah, as required by the public interest in serving pilgrims and Umrah performers.