Update of Rule No. (300-1-5-1) of the Account Opening Rules
| No: 46032385 | Date(g): 30/11/2024 | Date(h): 29/5/1446 | Status: In-Force |
Translated Document
Refer to Rule (300-1-5-1) included in the Banking Accounts Rules communicated via SAMA Circular No. (65681/67) dated 01/11/1440 H, which outlines the requirements for opening and managing bank accounts for Hajj, Umrah, and visiting the Prophet's Mosque.
Accordingly, please be informed that it has been decided to amend the aforementioned rule to align with the attached format. The update includes the following:
- Specific requirements for opening and managing accounts for Pilgrim Affairs Offices.
- Specific requirements for opening and managing accounts for Tourism companies and travel agencies organizing pilgrim arrival from outside Saudi Arabia.
For your information and action accordingly as of this date.
Update to Rule No. (300-1-5-1) on the Requirements for Opening and Managing Bank Accounts for Hajj, Umrah, and Visiting the Prophet’s Mosque
(300-1-5-1) Hajj, Umrah, and Visiting the Prophet’s Mosque:
| Pilgrims Affairs Offices | |||
| A. | Requirements for Account Opening: | ||
| 1. | Bank accounts shall be opened in Saudi riyal only. | ||
| 2. | The Hajj organizer shall present to the bank a letter from the Saudi Ministry of Hajj and Umrah approving opening a bank account for the pilgrim affairs office and including the office’s information as follows: | ||
| • The official name of the Pilgrims Affairs Office. • Names of the persons authorized to sign for the account (joint signature), provided that they shall be members of the pilgrim affairs office or shall be officials in the embassy of the country of such office. • The position of each account signatory and his/her information as per his/her passport. • The bank account shall be limited to Hajj purposes only. • The office’s bank account number in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah ,and the name of the bank transferring the money, which the office deals with in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah, shall also be stated. | |||
| 3. | The bank shall conclude an account opening agreement with the authorized signatories specified in the letter of the Ministry of Hajj and Umrah, addressed to the bank. | ||
| 4. | The account signatories shall determine, in Saudi riyal, the approximate total amount that their respective office will transfer for Hajj purposes. | ||
| 5. | Upon meeting the above requirements by the bank, the bank’s compliance department shall submit an application to SAMA along with all necessary documents to obtain SAMA approval for opening the bank account. | ||
| 6. | The bank shall ensure that such accounts are subject to dual control. | ||
| 7. | The bank shall provide the pilgrim affairs office and the Saudi Ministry of Hajj and Umrah with the IBAN number of the office’s bank account. | ||
| 8. | If the requirements for opening a bank account are not met, the bank branch manager must inform the applicant of the necessary requirements for opening a bank account. Such process shall be documented in a special file designed for this purpose in the bank branch. In addition, measures taken in this regard shall be reported to the compliance department at the head office of the bank on the same day. | ||
| 9. | If the requirements for opening a bank account are met, the documents shall be submitted on the same day to the compliance department at the bank’s head office. Consequently, the compliance department, in turn, shall submit such documents to SAMA on the same day or at the beginning of the following working day, at the most. | ||
| 10. | The pilgrim affairs office may open multiple accounts, provided that these accounts are opened in the same bank only - with an explanation of the account's purpose -, The office may not open other accounts in other banks. If the office requests to transfer its accounts from one bank to another, it shall provide compelling justifications that are not related to meeting the requirements. Approval of the Ministry Hajj and Umrah and SAMA for that matter shall be secured. | ||
| B. | Requirements for account operation and management: | ||
| 1. | The account shall be operated under a new approval letter from the Saudi Ministry of Hajj and Umrah to the bank on the account operation. The letter should specify the operation period, which should be from the beginning of Rabi II up till the end of Muharram of the following year. The letter shall be accompanied by a list provided by the pilgrim affairs office. This list shall include the names of Saudi natural persons, companies and establishments that the office will be dealing with for petty expenses, and it shall be attested by the Saudi Ministry of Hajj and Umrah. | ||
| 2. | Deposits shall be made in the accounts of the pilgrim affairs office via remittances from a bank in the office’s home country or countries designated by the Saudi Ministry of Hajj and Umrah, the purpose of such remittance shall be specified as “office’s expenses related to Hajj only”. | ||
| 3. | Deposits may be made in the account via checks under collection, drawn by the office itself on a bank in the office’s home country only. | ||
| 4. | Remittances, checks or cash deposits from entities inside Saudi Arabia shall not be accepted, except in the following cases: | ||
• By persons whose names are included in the list, submitted in advance to the Saudi Ministry of Hajj and Umrah by the pilgrim affairs office and attached to the ministry's letter to the bank. Such list should include the names of service providers dealing with the pilgrim affairs office. The amounts of such remittances, shall be less than or equal to the amounts stated in contracts concluded with each beneficiary (at the Saudi Ministry of Hajj and Umrah’s discretion). • By authorized persons, provided that such an amount is within normal limits, i.e. is less than or equal to the withdrawn amount as petty expenses (at the Saudi Ministry of Hajj and Umrah’s discretion). • The amounts (in SAR/foreign currencies) disclosed at ports of entry (land ports, seaports, or airports) shall be delivered to the bank branch at the port or the bank representative in the seasonal office at the port as per a document from the Saudi Zakat, Tax, and Customs Authority. Such document shall include the name of the pilgrim affairs office and its account number (IBAN) in Saudi Arabia, as well as the name of the cash carrier and a copy of his/her passport. The bank employee shall give the depositor a deposit or transfer receipt attested by the bank. | |||
| 5. | Transfers from the office’s account to the electronic pathway of the Ministry of Hajj and Umrah are made for services contracted through the electronic pathway. Direct transfers from the office’s account in its country—or in countries specified by the Saudi Ministry of Hajj and Umrah—to the electronic pathway account of the Saudi Ministry of Hajj and Umrah for external pilgrims are allowed for contracting purposes related to Hajj arrangements and any other purposes specified by the Saudi Ministry of Hajj and Umrah, in compliance with all requirements stated in this rule. | ||
| 6. | The organizer may pay authorized signatories by checks for petty expenses (within the estimated amounts approved by the Saudi Ministry of Hajj and Umrah). | ||
| 7. | The approval of the bank’s compliance department is required for the operation of the office’s account. | ||
| 8. | The office shall not use its account balances for investments. | ||
| C. | Operating the pilgrim affairs office’s account after Hajj season: | ||
| 1. | Surplus funds in the Hajj Affairs Office account at the end of the Hajj season (end of Muharram) must be returned to a bank in the office's country or to a bank in one of the countries specified by the Saudi Ministry of Hajj and Umrah in case they were the source of these funds, based on a request from the authorized persons in the office, provided that this requirement is specified in the office's account opening agreement. | ||
| 2. | If the office wants to keep the balance in the same account to be used in the subsequent Hajj year, the account will be frozen at the end of Muharram until the beginning of the subsequent Hajj season (which is to be specified by the Ministry of Hajj and Umrah). | ||
| 3. | In exceptional cases, operating the account of the pilgrim affairs office may be allowed during the period in which using the account is originally prohibited, provided that the bank obtains SAMA written approval therefor. | ||
| D. | Reactivating and operating the pilgrim affairs office’s account in the following Hajj year: | ||
| To reactivate the pilgrim affairs office’s bank account in the following Hajj year, the bank shall obtain a letter from the Ministry of Hajj and Umrah, including the same information specified in the form filled out by the ministry when it first approved the account opening. In particular, the information should include the names of authorized persons and their information. The approval letter should be obtained along with the list provided by the pilgrim affairs office for the Ministry of Hajj and Umrah, stating the parties that the office has contracted with in the Hajj year and that the office will write checks and make payments for. This list shall be attested by the Ministry of Hajj and Umrah. | |||
| Tourism companies and travel agencies organizing pilgrim arrival from outside Saudi Arabia: | |||
| A. | Requirements for opening a bank account: | ||
| 1. | Bank accounts shall be opened in Saudi riyal only. | ||
| 2. | The Hajj organizer shall present to the bank a letter from the Ministry of Hajj and Umrah approving opening a bank account for the pilgrim affairs office and including the office’s information as follows: | ||
| • Official name of the organizer (tourism company, agency or association approved to organize pilgrims’ arrival) in Arabic and English. • The computer number given to the organizer by the Ministry of Hajj and Umrah. • Name(s) of person(s) authorized to manage the bank account, provided that they are officials in the tourism company, agency or association approved to organize for pilgrim arrival. Full names shall be written in English and Arabic as shown in their passports, along with their passport number. • The authorized person’s title shall be a “Hajj organizer". • The bank account shall be limited to Hajj purposes only. • The organizer’s bank account number in its home country or or in the country designated by the Saudi Ministry of Hajj and Umrah, shall be specified, as well as the name of the bank transferring funds, which the organizer deals with in its home country or in the country designated by the Saudi Ministry of Hajj and Umrah. | |||
| 3. | A copy of the organizer’s commercial register and/or license issued for the organizer in its home country shall be submitted. Such commercial register and/or license shall be attested by the concerned Saudi embassy and/or the Ministry of Foreign Affairs. | ||
| 4. | The bank must obtain copies of the passports of person(s) authorized to operate the bank account for dual control. | ||
| 5. | The bank shall conclude an account opening agreement with the authorized signatories. | ||
| 6. | The organizer shall determine, in Saudi riyal, the approximate total amount that it will transfer for Hajj purposes. | ||
| 7. | Upon meeting all the above requirements by the bank, the bank’s compliance department shall submit an application to SAMA along with all necessary documents to obtain SAMA approval for opening the bank account. | ||
| 8. | The bank shall ensure that such accounts are subject to dual control. | ||
| 9. | The bank shall provide the organizer and the Ministry of Hajj and Umrah with the IBAN number of the organizer's account on a form designed for this purpose. | ||
| 10. | If the requirements for opening a bank account are not met, the bank branch manager must inform the applicant of the necessary requirements for opening a bank account. Such process shall be documented in a special file designed for this purpose in the bank branch. In addition, measures taken in this regard shall be reported to the compliance department at the head office of the bank on the same day. | ||
| 11. | If the requirements for opening a bank account are met, the documents shall be submitted on the same day to the compliance department at the bank’s head office. Consequently, the compliance department, in turn, shall submit such documents to SAMA on the same day or at the beginning of the following working day, at the most. | ||
| 12. | Where all requirements are met, the period for opening a bank account shall not exceed two working days. | ||
| 13. | The Hajj organizer may open multiple accounts, provided that these accounts are opened in the same bank only - with an explanation of the account's purpose - The organizer may not open other accounts in other banks. If the organizer requests to transfer its accounts from one bank to another, it shall provide compelling justifications that are not related to meeting the requirements. Approval of the Ministry Hajj and Umrah and SAMA for that matter shall be secured. | ||
| B. | Requirements for account operation and management:: | ||
| 1. | The account shall be operated under a new approval letter from the Ministry of Hajj and Umrah to the bank on the account operation. The letter should specify the operation period, which should be from the first day of Rabi I up till the last day of Muharram of the following year. The letter shall be accompanied by a list provided by the Hajj organizer. This list shall include the names of Saudi natural persons, companies and establishments that the organizer will be dealing with for petty expenses, and it shall be attested by the Ministry of Hajj and Umrah. | ||
| 2. | Deposits shall be made in the account of the Hajj organizer via remittances from a bank in the organizer’s home country or countries designated by the Saudi Ministry of Hajj and Umrah, the purpose of such remittance shall be specified as “organizer’s expenses related to Hajj only”. | ||
| 3. | Deposits may be made in the account via checks under collection, drawn by the organizer itself on a bank in the organizer’s home country only. | ||
| 4. | Remittances, checks or cash deposits from entities inside Saudi Arabia shall not be accepted, except in the following cases: | ||
• By persons whose names are included in the list, submitted in advance to the Ministry of Hajj and Umrah by the organizer and attached to the ministry's letter to the bank. Such list should include the names of service providers dealing with the organizer. The amounts of such remittances, checks or cash deposits shall be less than or equal to the amounts stated in contracts concluded with each beneficiary (at the Saudi Ministry of Hajj and Umrah’s discretion). • By authorized persons, provided that such an amount is within normal limits, i.e. is less than or equal to the withdrawn amount as petty expenses (at the Saudi Ministry of Hajj and Umrah’s discretion). • The amounts (in SAR/foreign currencies) disclosed at ports of entry (land ports, seaports, or airports) shall be delivered to the bank branch at the port or the bank representative in the seasonal office at the port as per a document from the Saudi Zakat, Tax, and Customs Authority. Such document shall include the name of the organizer and its account number (IBAN) in Saudi Arabia, as well as the name of the cash carrier and a copy of his/her passport. The bank employee shall give the depositor a deposit or transfer receipt attested by the bank. | |||
| 5. | Transfers from the office’s account to the electronic pathway of the Ministry of Hajj and Umrah are made for services contracted through the electronic pathway. Direct transfers from the office’s account in its country—or in countries designated by the Saudi Ministry of Hajj and Umrah—to the electronic pathway account of the Saudi Ministry of Hajj and Umrah for external pilgrims are allowed for contracting purposes related to Hajj arrangements and any other purposes specified by the Saudi Ministry of Hajj and Umrah, in compliance with all requirements stated in this rule. | ||
| 6. | The organizer may pay authorized signatories by checks for petty expenses (within the estimated amounts approved by the Saudi Ministry of Hajj and Umrah). | ||
| 7. | The approval of the bank’s compliance department is required for the operation of the organizer’s account. | ||
| 8. | The organizer shall not use its account balances for investments. | ||
| C. | Operating the organizer’s account after Hajj season: | ||
| 1. | At the end of the Hajj season (end of Muharram), amounts left in the account of the organizer shall be returned to a bank in the organizer’s home country or to a bank in one of the countries designated by the Saudi Ministry of Hajj and Umrah in case they were the source of these funds at the request of the authorized persons. Such a request shall be indicated in the bank account opening agreement signed by the organizer. | ||
| 2. | If the organizer wants to keep the balance in the same account to be used in the subsequent Hajj year, the account will be frozen at the end of Muharram until the beginning of the subsequent Hajj season (which is to be specified by the Ministry of Hajj and Umrah). | ||
| 3. | In exceptional cases, operating the account of the organizer may be allowed during the period in which using the account is originally prohibited, provided that the bank shall obtain SAMA written approval therefor. | ||
| D. | Reactivating and operating the organizer’s account in the following Hajj year: | ||
| To reactivate the organizer’s bank account in the following Hajj year, the bank shall obtain a letter from the Ministry of Hajj and Umrah, including the same information specified in the form filled out by the ministry when it first approved the account opening. In particular, the information should include the names of authorized persons and their information. The approval letter should be obtained along with the list provided by the organizer for the Ministry of Hajj and Umrah, stating the parties that the organizer has contracted with in the Hajj year and that the organizer will write checks and make payments for. This list shall be attested by the Ministry of Hajj and Umrah. | |||
| Saudi establishments and companies organizing the arrival of Umrah performers and visitors of the Prophet's Mosque: | |||
| - | Documents required from those Saudi establishments are as specified in Rule (300.1.1) above. | ||
| - | Documents required from those Saudi companies are as specified in Rule (300.1.3) above. | ||
| - | All bank accounts of Saudi establishments and companies licensed to offer Umrah and holy site visit services shall be separated from one another, in that bank accounts designated for Umrah and holy site visit services shall be separate from other bank accounts designated for other activities and services. In addition, all bank transactions related to Umrah services shall be separate from those related to other services and activities that such establishments and companies may carry out. | ||