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.

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.

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.

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.

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.

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.

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.

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:

8. 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.

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:

6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.).
13. 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.
14. Direct natural persons wishing to exchange currency in amounts exceeding the allowed financial limits to local banks.
15. 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.

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:

16. 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.
17. 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.
18. 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:

19. Enhance due diligence procedures when processing transactions related to politically exposed persons (PEPs) such as individuals in senior positions, leadership roles, and diplomats.
20. 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.
21. When implementing new electronic money transfer and payment systems, ensure that they have the capability to prevent and detect money laundering and terrorism financing.
22. 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.
23. 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.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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).
29. 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.
30. 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.
31. 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.
32. 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.
33. 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.

Cease the handling of purchasing draft cheques transactions.

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:

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:

8. 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.
9. 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).
10. 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.
11. 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.
12. 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:

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.

Money exchange centers must adhere to the instructions outlined in the Law of Private Security Services and its implementing regulations issued by Royal Decree No. M/24, dated 8/7/1426H, the Law of Transporting Money, Precious Metals, and Valuable Documents issued by SAMA, No. M/81, dated 18/10/1428H; and the Security Safety Guidelines issued by SAMA, No. 485/M.A/36, dated 7/1/1416 H. These instructions should be considered the minimum security and safety measures that must be followed, and must include at least the following:

1. Adhering to the security safety requirements issued by SAMA, including:

2. Displaying the license issued by SAMA and announcing the exchange rates prominently at the location.
3. Including the license number in all printed materials, correspondence, and any other outputs.
4. Handling transactions with clients using official receipts for all allowed exchange operations.
5. Informing clients prominently about the necessity of obtaining receipts for any transaction performed.
6. Equipping work areas with the necessary devices for counting, sorting cash, and detecting counterfeit currency.
7. Insuring property against fire and theft with a licensed insurance provider in the Kingdom.

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.

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.

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).

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).