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.