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Amendment of Rule No. (300-1-3-8) of the Account Opening Rules

No: 000046024651 Date(g): 22/10/2024 | Date(h): 19/4/1446 Status: In-Force

Translated Document

In reference to Rule No. (300-1-3-8) concerning the Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies, included in the Account Opening Rules and notified in accordance with SAMA Circular No. (65681/67) dated 01/11/1440 H, and to SAMA Circular No. (46023501) dated 14/04/1446H, through which the issuance of His Excellency the Governor’s Decision No. (162/M SH T) dated 27/03/1446H was communicated, approving the amendment of the Rules for Engaging in Debt-Based Crowdfunding.

Whereas, the amendment to the Rules for Engaging in Debt-Based Crowdfunding included the amendment to some of the terms used therein, including what is used in the name of Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies.

 Accordingly, I inform you that the following has been decided: 

First/ Amending the above-mentioned rule to be in accordance with the accompanying formula by replacing the term "debt-based crowdfunding establishment" with the word "debt-based crowdfunding company", as well as replacing the word "finance value" with "finance amount" wherever it appears in the rule. 

Second/ Amending the term and definition of the finance value and the debt-based crowdfunding establishment contained in Chapter (1) on definitions to be as follows: 

  • "Finance Amount: funds raised from Participants via a Debt-Based Crowdfunding Platform to be provided for an Institutional Beneficiary".
  •  "Debt-Based Crowdfunding Company: a joint-stock company licensed to engage in Debt-Based Crowdfunding activity".

 

Amendment of Rule (300-1-3-8) of the Account Opening Rules , as amended, to align with the modification of the Rules for Engaging in Debt-Based Crowdfunding as communicated to crowdfunding companies by SAMA Circular No. (46023501) dated (14/04/1446H)

300.1.3.8 Collection Accounts for Managing the Finance Value of Debt-Based Crowdfunding Companies:

The collection accounts for collecting funds from participants in order to extend credit to beneficiaries shall be opened and managed in accordance with the following requirements: 
 
1.A letter from the Chairperson of the Board of Directors of the company or their authorized representative to the bank, stating the purpose of opening the account under the name “Management of the Finance Amount of (name of debt-based crowdfunding company)”, and identifying the persons authorized to manage the account.
 
2.Copies of all the company’s incorporation documents, including the memorandum of association, articles of association and Board formation decision.
 
3.Copies of the IDs of persons authorized to manage the account.
 
4.The name of the account shall be “Management of the Finance Amount of (name of debt-based crowdfunding company).”
 
5.The account shall be separate and independent from the accounts opened for managing the company’s business, including the fees and commissions collected by the company. The account shall not be used for any financial obligations or rights of the company.
 
6.Transfer of money to other accounts without the approval of the participants shall only be made after submitting SAMA’s non-objection for such transaction.
 
7.Cash deposits to or withdrawals from the account shall not be allowed.