| 1. | Banks wishing to contract with Agents shall apply for Saudi Central Bank’s no-objection pursuant to the provisions hereof. The applications submitted by Banks shall be as follows:
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| | a. | One-time application for Saudi Central Bank’s non-objection to the engagement of the Bank in Agent Banking activity; and
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| | b. | Prior to contracting with each Agent, a separate application for Saudi Central Bank’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 Saudi Central Bank’s requirements.
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| | 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 Saudi Central Bank’s non-objection application referred to in Clause (1.a).
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| 2. | When submitting the application mentioned in Clause (1.a) of Article 4, Banks must also submit, along with it, the following:
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| | a. | Approval of the Bank’s board and its commitment to complying with this Regulation and what Saudi Central Bank issues in this regard;
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| | 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;
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| | c. | A copy of the Bank’s branch expansion plan;
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| | d. | Proof of the Bank’s infrastructure that supports Agent Banking, including systems and technologies to be utilized;
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| | e. | The Bank’s qualifying criteria for engaging Agents, such as the following:
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| | | - | Outreach
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| | | - | Efficiency
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| | | - | Integrity
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| | | - | Security
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| | | - | Proper IT Infrastructure
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| | f. | Description of permissible services that may be provided through the Bank’s Exclusive Agent or Multiple Agent arrangement;
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| | g. | Agent Banking contract template;
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| | h. | Description of processes for customer due diligence, including KYC and compliance with AML/CFT laws and instructions;
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| | i. | Description of procedures of information security and confidentiality protection;
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| | j. | Risk assessment report, including risk management, internal control and operational policies and procedures;
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| | k. | Description of consumer protection measures, including financial awareness and education strategies related to Agent Banking;
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| | l. | Description of controls and monitoring procedures to ensure compliance with relevant laws, regulations, instructions and regulatory requirements;
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| | m. | Business Continuity Plan (BCP) and contingency arrangements to ensure continuity of Agent Banking services in the event of disruption; and
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| | n. | Any other policies, procedures and/or requirements relevant to the management of Agent Banking business as SAMA may deem appropriate.
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