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Article 4: Application Requirements

Effective from 2019-02-20 - May 02 2019
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1.Banks wishing to contract with Agents shall apply for SAMA’s no-objection pursuant to the provisions hereof. The applications submitted by Banks shall be as follows:
 		 
 a.One-time application for SAMA’s non-objection to the engagement of the Bank in Agent Banking activity; and
 
 b.Prior to contracting with each Agent, a separate application for SAMA’s non-objection to each Agent to be contracted under an “Exclusive Agent” or “Multiple Agent” arrangement for the purposes of Agent Banking and in accordance with SAMA’s requirements.
 
 c.Applications mentioned in Clause (1.a) and Clause (1.b) of Article 4 may be submitted at the same time. However, the application mentioned in Clause (1.b) may not be submitted alone unless the Bank has previously submitted SAMA’s non-objection application referred to in Clause (1.a).
 
2.When submitting the application mentioned in Clause (1.a) of Article 4, Banks must also submit, along with it, the following:
 		 
 a.Approval of the Bank’s board and its commitment to complying with this Regulation and what SAMA issues in this regard;
 
 b.Bank’s internal policy on Agent Banking that covers procedures related to Agent selection, management, monitoring, operations, compliance, conduct, service quality and business supervision;
 
 c.A copy of the Bank’s branch expansion plan;
 
 d.Proof of the Bank’s infrastructure that supports Agent Banking, including systems and technologies to be utilized;
 
 e.The Bank’s qualifying criteria for engaging Agents, such as the following:
 
  -Outreach
 		 
  -Efficiency
 		 
  -Integrity
 		 
  -Security
 		 
  -Proper IT Infrastructure
 		 
 f.Description of permissible services that may be provided through the Bank’s Exclusive Agent or Multiple Agent arrangement;
 
 g.Agent Banking contract template;
 
 h.Description of processes for customer due diligence, including KYC and compliance with AML/CFT laws and instructions;
 
 i.Description of procedures of information security and confidentiality protection;
 
 j.Risk assessment report, including risk management, internal control and operational policies and procedures;
 
 k.Description of consumer protection measures, including financial awareness and education strategies related to Agent Banking;
 
 l.Description of controls and monitoring procedures to ensure compliance with relevant laws, regulations, instructions and regulatory requirements;
 
 m.Business Continuity Plan (BCP) and contingency arrangements to ensure continuity of Agent Banking services in the event of disruption; and
 
 n.Any other policies, procedures and/or requirements relevant to the management of Agent Banking business as SAMA may deem appropriate.