Amendment of Rule (300-1-5-1) for bank Account Rules
| No: 46032385 | Date(g): 30/11/2024 | Date(h): 29/5/1446 | Status: In-Force |
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:
| 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 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. | Requirements for Account Opening: | ||
| 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. | ||