Chapter Two: Provisions for Savings Products
Article Three: Design and Development of Savings Products
1 . When designing and developing savings products, the bank must comply to the following: 1.1 Product design quality, and the principles of disclosure and transparency in its presentation and offering. 1.2. Continuous evaluation of the product's effectiveness and risks based on specific performance indicators. 1.3. Transparency, clarity and accuracy in all product documents, including agreements and initial disclosures. 1.4. Flexibility in the terms for customers to obtain and benefit from the product, or cancel it. The bank should make the product available through digital channels and should not require the customer to have or open a current account, except for products that necessitate such mechanisms, like those involving automatic deductions. 1.5. Inclusiveness of products a various customer segments, including those with low income, foreign residents, and individuals under the age of eighteen. 2. The bank should give importance to savings products in its product development process, considering the best local and international standards and practices in this regard. Article Four: Advertising and Disclosure of Savings Products
The bank must give importance to savings products in promotional advertisements. Additionally, it should allocate a section on its website and mobile application to display these products, including at a minimum the characteristics of each product, the terms of use, and frequently asked questions about the product. The section should be regularly reviewed to ensure the information remains up-to-date.
Article Five: Offering and Managing Savings Products
When offering and managing savings products, the bank must adhere to the following:
1. Implement due diligence measures by identifying the customer and any authorized representatives, -if any-, and verify their identities using reliable and independent documents, data, or information, in accordance with the Anti-Money Laundering Law and the Law on Combating the Financing of Terrorism and their implementing regulations. The bank may also refer to the requirements outlined in the Account Opening Rules issued by SAMA when identifying the customer. 2. Provide the customer with an initial disclosure that include the contents of the agreement specified in paragraph (3) of this article. 3. Conclude a product agreement with the customer that includes, -at a minimum- and considering the characteristics of each product, the following: 3.1. Returns and Calculation Mechanism. 3.2. Annual Equivalent Rate (AER). 3.3. Any fees charged to the customer, including administrative fees. 3.4. The scope and areas of investment for the deposit amount. 3.5. The obligations and rights of both parties, such as withdrawal limits from the deposit amount or the minimum amount that must be retained. 3.6. The circumstances under which the customer may not be entitled to returns. 4. Provide the customer with a summarized monthly statement that includes, -at a minimum-, the deposit amount and the returns accrued since the product was obtained. 5. Subject to the provisions in paragraph (1.5) of Article Six, it is preferred that the agreement with the customer be for a fixed term, with either party having the right to terminate it after providing the other party with sufficient notice through mutually agreed reliable communication channels. Upon termination of the agreement or its expiration without renewal agreement by both parties, the bank must transfer the deposit amount to a current account specified by the customer. Article Six: Offering Savings Products to Non-Residents
1. Without prejudice to the provisions of the Anti-Money Laundering Law and the Law on Combating the Financing of Terrorism and their implementing regulations, it is permissible to offer savings products to non-residents in the Kingdom, provided that the bank adheres to the following minimum requirements: 1.1 Compliance with the laws of the customer’s country of residence, -where applicable-, such as obtaining a license from the relevant authorities in the customer’s country of residence, as well as adhering to personal data protection laws, tax evasion laws, and other related regulations. 1.2 Implementation of enhanced due diligence measures, which may include relying on a third party in accordance with the "reliance on a third party" requirements specified in the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide. 1.3 Establishing limits and methods for withdrawals, deposits, and redemption of the deposit amount in accordance with the customer’s risk level. 1.4 Offering these products exclusively in Saudi Riyals. 1.5 Ensuring that the agreement with the customer be for a fixed term, with either party having the right to terminate it after providing the other party with sufficient notice through mutually agreed reliable communication channels. Upon termination of the agreement or its expiration without renewal agreement by both parties, the bank must transfer the deposit amount to a current account specified by the customer. 1.6 Obtaining written no-objection letter from SAMA before offering the product, including a request detailing the target percentage of total savings products and time deposits held by the bank. 2. Without prejudice to the requirements of Account Opening Rules that mandate the closure of the resident customer's current account upon their final departure from the Kingdom, the customer is permitted to keep the available funds in the bank by utilizing savings products, provided that this is based on the customer's request, whether before their departure from the Kingdom or after their departure and the closure of the current account.