Amendment of Rule (300-1-5-1) for bank Account Rules
| No: 46032385 | Date(g): 30/11/2024 | Date(h): 29/5/1446 |
Effective from 2024-11-30 - Nov 29 2024
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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 agencies organizing the arrival of pilgrims from outside the Kingdom.
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:
| مكاتب شؤون الحجاج | |||
| a. | Pilgrims Affairs Offices | ||
| 1. | Accounts must be opened in Saudi Riyals (SAR) only. | ||
| 2. | Fulfillment of a letter from the Saudi Ministry of Hajj and Umrah permitting the opening of a bank account for the Pilgrims Affairs Office including the following office details: | ||
| • The official name of the Pilgrims Affairs Office. • Names of the authorized signatories on the account (joint signature) who must be members of the Pilgrims Affairs Office or officials of the embassy of the office's country. • The position of each authorized signatory on the account, along with their passport information. • The account’s purpose must be exclusively for Hajj purposes. • Specification of the office's account number in its country or in the country designated by the Saudi Ministry of Hajj and Umrah, and the name of the originating bank handling funds transfers in its country or the designated country by the Saudi Ministry of Hajj and Umrah. | |||
| 3. | The bank must obtain an account opening agreement from the authorized individuals specified in the letter from the Saudi Ministry of Hajj and Umrah directed to the bank. | ||
| 4. | Authorized individuals must specify the approximate total amount in Saudi Riyals that the office will transfer for Hajj purposes. | ||
| 5. | After the bank fulfills the above-mentioned conditions, a request must be submitted by the Compliance Department to SAMA, accompanied by all documents and paperwork, to obtain SAMA's approval for opening the account. | ||
| 6. | These accounts must be subject to dual control within the bank. | ||
| 7. | The bank must provide the Pilgrims Affairs Office and the Saudi Ministry of Hajj and Umrah with the IBAN for the office’s account. | ||
| 8. | If account opening requirements are not fulfilled, the branch administration must inform the account applicant of the necessary requirements, document the process in a dedicated file at the branch, and notify the Compliance Department at the bank's headquarters (General Administration) on the same day of the action taken. | ||
| 9. | If account opening requirements are fulfilled, they must be submitted on the same day to the Compliance Department at the bank's headquarters. The Compliance Department must present them to SAMA on the same day or at the beginning of the next business day at the latest. | ||
| 10. | The office is permitted to open multiple accounts within one bank only, specifying the purpose of each account. Opening accounts in other banks is not allowed. If the office requests to transfer its accounts to another bank, it must provide convincing justifications and substantial reasons unrelated to the application of requirements, along with approval from the Ministry of Hajj and Umrah and SAMA. | ||
| b. | Account Operation and Management Requirements: | ||
| 1. | The account is operated based on a new approval letter from the Saudi Ministry of Hajj and Umrah to the bank, specifying the start of the operation period from the beginning of Rabi’ al-Awwal and ending at the end of Muharram of the following year, accompanied by the Ministry's existing approval submitted by the Hajj Affairs Office with the names of natural Saudi persons, companies, and institutions the office will deal with for petty expenses, endorsed by the Ministry. | ||
| 2. | Deposits into the Hajj Affairs Office accounts are made through transfers from the bank in the office's country or countries specified by the Saudi Ministry of Hajj and Umrah, provided the purpose of the transfer is for Hajj expenses only. | ||
| 3. | Deposits into the account are allowed through cheques under collection drawn in the name of the office from a bank in the office's country only. | ||
| 4. | Receiving transfers, cheques, or cash deposits from entities within the Kingdom is not permitted except in the following cases: | ||
• From the names listed in the previously submitted list to the Saudi Ministry of Hajj and Umrah by the Hajj Affairs Office, attached to the Ministry's letter to the bank, for the beneficiaries providing services to the Hajj Affairs Office, provided the amounts are less than or equal to the amounts of the contracts signed with each beneficiary (as estimated by the Saudi Ministry of Hajj and Umrah). • From the authorized signatories within a reasonable amount that is less than or equal to the withdrawn amount for petty expenses (as estimated by the Saudi Ministry of Hajj and Umrah). • The disclosed amounts (in Riyals/foreign currency) at land, sea, and air entry points are delivered to the bank branch at the entry point or the bank representative at the seasonal office at the entry point based on a document from the Zakat, Tax, and Customs Authority, including the name of the Hajj Affairs Office, its account number (IBAN) in the Kingdom, the name of the responsible person carrying the cash, and a copy of their passport. The bank employee provides the depositor with a deposit or transfer receipt certified 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 office is allowed to disburse funds via cheques issued to authorized signatories for petty expenses (within the estimated amounts approved by the Saudi Ministry of Hajj and Umrah). | ||
| 7. | Approval of the Compliance Department in the bank to allow the operation of the office's account. | ||
| 8. | Offices are not permitted to invest the balances of their accounts. | ||
| c. | End-of-Hajj Period Operations: | ||
| 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 wishes to keep the balance in the same account for use in the following Hajj year, the account will be frozen at the end of Muharram until the start of the next Hajj season as determined by the Ministry of Hajj and Umrah regarding the specified Hajj periods. | ||
| 3. | In exceptional cases requiring the operation of the account during the period when transactions on Hajj Office accounts are prohibited, the bank must obtain written approval from SAMA. | ||
| d. | Reactivating and Operating the Account in the Following Hajj Year: | ||
| To operate the office's account in the subsequent Hajj year, the bank must obtain a letter from the Ministry of Hajj and Umrah that includes the same information specified in the form filled by the ministry when it authorized the account opening, particularly the names and details of the authorized signatories. The letter must be accompanied by the current approval submitted by the Hajj Affairs Office to the ministry, listing the entities the office contracted with for the Hajj year. These entities will exclusively receive and cash the checks, as validated by the ministry. | |||
| Companies and Travel Agencies Organizing the Arrival of Pilgrims from Outside the Kingdom | |||
| a. | Account Opening Requirements: | ||
| 1. | Accounts must be opened in Saudi Riyals only. | ||
| 2. | A letter from the Ministry of Hajj and Umrah must be submitted permitting the opening of a bank account for the organizer, including the following information: | ||
| • The official name of the organizer (tourism company, agency, or association authorized to organize the arrival of pilgrims) in both Arabic and English. • The computer number granted to the organizer by the Ministry of Hajj and Umrah. • Names of the authorized signatory or signatories managing the account, provided they are officials of the tourism company, agency, or legally authorized association for organizing pilgrim arrivals. Names must be in both Arabic and English as per the full name in their passports, along with their passport numbers. • The status of the authorized individual must be "Hajj Organizer." • The account's purpose must be restricted to Hajj-related activities only. • The organizer's account number in their home country or in the country specified by the Saudi Ministry of Hajj and Umrah, as well as the name of the bank transferring the funds that the organizer deals with in their home country or the specified country. | |||
| 3. | A copy of the commercial registration and/or license issued to the organizer from their country, authenticated by the Saudi Embassy and/or the Ministry of Foreign Affairs. | ||
| 4. | Copies of the passports of the authorized persons managing the account at the bank for dual control. | ||
| 5. | The bank must obtain a signed account opening agreement from the authorized persons. | ||
| 6. | The organizer must specify the approximate total amount in Saudi Riyals they will transfer for Hajj purposes. | ||
| 7. | After the bank fulfills all the conditions outlined above, a request must be submitted by the bank's compliance department to SAMA, accompanied by all relevant documents and records, to obtain approval for opening the account. | ||
| 8. | These accounts must be subject to dual control within the bank. | ||
| 9. | The organizer and the Ministry of Hajj and Umrah must be provided with the IBAN of the organizer's account using a dedicated form. | ||
| 10. | If the account opening requirements are not fulfilled, the branch management must inform the applicant of the necessary requirements, document the process in a special file at the branch, and notify the compliance department at the bank's headquarters (main administration) on the same day of the action taken. | ||
| 11. | If the account opening requirements are met, the application must be presented to the compliance department at the headquarters on the same day. The compliance department must then forward it to SAMA on the same day or at the start of the next business day at the latest. | ||
| 12. | The time frame for opening an account with complete requirements must not exceed two working days. | ||
| 13. | The organizer is permitted to open more than one account, provided they are within the same bank, with the purpose of the account clearly stated. Opening accounts in other banks is not permitted. If the organizer wishes to transfer their accounts from one bank to another, they must provide convincing justifications and substantial reasons unrelated to compliance with requirements, subject to the approval of the Ministry of Hajj and Umrah and SAMA. | ||
| b. | Account Operation and Management Requirements: | ||
| 1. | The account is operated based on new approval in a letter from the Ministry of Hajj and Umrah to the bank authorizing the activation of the account. The letter specifies the operation period beginning on the first day of Rabi’ al-Awwal and ending on the last day of Muharram of the following year. It must be accompanied by the ministry's existing approval submitted by the Hajj Office, including the names of Saudi individuals, companies, and entities the office will deal with for petty expenses, as certified by the ministry. | ||
| 2. | Deposits into the organizer's accounts should only be made via transfers from a bank in the organizer's country or from countries specified by the Ministry of Hajj and Umrah, with the purpose limited solely to Hajj-related expenses. | ||
| 3. | Deposits are allowed via collection checks drawn in the name of the organizer from a bank in the organizer's country only. | ||
| 4. | It is not permitted to receive transfers, checks, or cash deposits from entities within the Kingdom except in the following cases: | ||
• From the names listed in the previously submitted list to the Ministry of Hajj and Umrah by the organizer, attached with the ministry's letter to the bank for service providers to the organizer, provided that the amounts are less than or equal to the amounts of contracts concluded with each beneficiary (as estimated by the Ministry of Hajj and Umrah in Saudi Arabia). • From the authorized persons within a reasonable amount that is less than or equal to the amount withdrawn for petty expenses (as estimated by the Ministry of Hajj and Umrah in Saudi Arabia). • Declared amounts (Saudi Riyals/foreign currency) are delivered at land, sea, or airports to the bank's branch at the port or the bank's representative at the seasonal office at the port based on a document from the Zakat, Tax, and Customs Authority. This document should include the organizer's name, IBAN in the Kingdom, the name of the responsible person carrying the cash, a copy of their passport, and the bank employee should provide the depositor with a receipt or transfer slip certified by the bank. | |||
| 5. | Transfers are made from the organizer's account to the electronic platform of the Ministry of Hajj and Umrah for service contracts provided through the electronic platform. Direct transfers from the organizer's account in their home country—or in countries specified by the Ministry of Hajj and Umrah in Saudi Arabia—to the electronic platform account of the Ministry of Hajj and Umrah for external pilgrims are also permitted for the purposes of organizing pilgrim arrangements and any other purposes specified by the Ministry of Hajj and Umrah, in compliance with all the requirements outlined in this rule. | ||
| 6. | The organizer is allowed to disburse funds through checks issued to authorized persons for petty expenses (within the amounts approved by the Ministry of Hajj and Umrah in Saudi Arabia). | ||
| 7. | Approval from the bank's compliance department is required to authorize the operation of the organizer's account. | ||
| 8. | The organizer is not allowed to invest the balances of their accounts. | ||
| c. | End-of-Hajj Period Operations: | ||
| 1. | Surplus funds in the organizer's account at the end of the Hajj season (end of Muharram) should be returned to a bank in the organizer's home country or to a bank in one of the countries specified by the Ministry of Hajj and Umrah in Saudi Arabia, in case they were the source of these funds. This should be done based on a request from the authorized individuals in the organizer's office and must be stipulated in the organizer's account-opening agreement. | ||
| 2. | If the organizer wishes to keep the balance in the same account for use in the next Hajj year, the account will be frozen at the end of Muharram until the start of the subsequent Hajj season, as determined by the Ministry of Hajj and Umrah regarding the Hajj periods. | ||
| 3. | In exceptional cases requiring the operation of the account during the period when transactions on Hajj Office accounts are prohibited, the bank must obtain written approval from SAMA. | ||
| d. | Reactivating and Operating the Account in the Following Hajj Year: | ||
| To operate the office's account in the subsequent Hajj year, the bank must obtain a letter from the Ministry of Hajj and Umrah that includes the same information specified in the form filled by the ministry when it authorized the account opening, particularly the names and details of the authorized signatories. The letter must be accompanied by the current approval submitted by the Hajj Affairs Office to the ministry, listing the entities the office contracted with for the Hajj year. These entities will exclusively receive and cash the checks, as validated by the ministry. | |||
| Saudi Institutions and Companies Organizing the Arrival of Umrah Performers and Visitors to the Prophet's Mosque | |||
| - | The required documents shall be obtained from the institutions in accordance with the requirements of Rule No. (300-1-1) above. | ||
| - | The required documents shall be obtained from the companies in accordance with the requirements of Rule No. (300-1-3) above. | ||
| - | All bank accounts of Saudi institutions and companies licensed for Umrah and visitation activities shall be separated from other bank accounts related to their other activities. All banking transactions related to Umrah activities must be independent from transactions associated with other activities that these institutions and companies may undertake. | ||