At a minimum, the Agent Banking contract must incorporate provisions that address the following:
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| | 1. | The appointment of a third party as the Bank’s Agent to provide a clearly defined scope of banking services.
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| | 2. | Capacity and nationality of the parties and the necessity of all parties having the authority to enter into this Agent Banking contract.
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| | 3. | The Agent’s personal and business details, including the Agent’s business hours and any other important information.
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| | 4. | The services provided by the Agent in detail, subject to the provisions of Article 20 hereof.
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| | 5. | The Agent’s responsibilities, including, at a minimum, the following:
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| | | a. | Dealing with Customers in a professional way and avoiding any prohibited activities as specified herein.
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| | | b. | Exercising customer due diligence when conducting transactions, including:
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| | | | 1. | Specifying a Customer authentication mechanism for transactions executed through the Agent; and
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| | | | 2. | Using an ICT device with a screen of proper size for Customers to review and verify the details of transactions executed.
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| | | c. | Taking consumer protection measures as follows:
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| | | | 1. | Providing proof of transactions to Customers;
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| | | | 2. | Facilitating channeling of complaints by Customers to the contracting Bank; and
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| | | | 3. | Disclosing mandatory information as specified in Saudi Central Bank regulations, instructions, and Consumer Protection Principles.
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| | | d. | Compliance with all applicable laws, instructions and internal policies of the Bank, including the Bank’s codes of ethics and conduct.
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| | | e. | Exercising due care in handling the Agent Banking systems and devices.
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| | | f. | Maintaining records, documents, files and proof of transactions for a period not less than 10 years. The Agent must provide the Bank with these records regularly in previously determined periods. The Bank shall then maintain these records to facilitate supervision, control and verification as specified in Article 27 hereof.
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| | | g. | Fulfilling reporting requirements necessary to enable the Bank to effectively monitor the performance of the Agent on a monthly basis and reporting incidents that may materially affect the efficiency of service delivery.
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| | | h. | Allowing access upon receiving notification for the contracting Bank to carry out examination or on-site inspection and investigation on the Agent’s premises, and cooperating when the Bank requires information from the Agent as stipulated in Article 29 hereof.
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| | | i. | Having a description of prohibited activities that the Agent cannot practice on behalf of the Bank, as indicated in Article 20 hereof.
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| | | j. | Keeping confidential the Customers’ information and not disclosing any information obtained by virtue of work.
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| | | k. | Conforming to legal and regulatory requirements.
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| | 6. | Mechanisms for dispute resolution and indemnities, which cover disputes between Customer and Agent, disputes arising between the Agent and the Bank, and non-compliance of the Agent that is detrimental to the Bank. Such mechanisms shall also encompass recourse to other methods of compensation, procedures and period for resolution, indemnities, and obligations of the respective parties in the event of a dispute.
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| | 7. | Terms of termination or expiration of the Agent Banking contract, which may include failure to meet obligations of the contract or comply with provisions hereof.
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| | 8. | Measures to mitigate risks associated with Agent Banking services.
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| | 9. | Compliance with AML/CFT and KYC requirements, including providing Saudi Central Bank, by the Bank, with all requested documents and periodic reports on AML/CFT.
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| | 10. | A statement that all information or data that the Agent collects in relation to Agent Banking services, whether from the Customers, the Bank or other sources, is the property of the Bank and that such information must be kept confidential and no unauthorized third party will have access to Customer information. The statement shall also indicate that the aforementioned provisions shall survive termination of the Agent Banking contract.
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| | 11. | Changing the contract terms for default and contract termination.
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| | 12. | A transition clause on the rights and obligations of the parties upon termination or cessation of the Agent Banking contract.
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| | 13. | Stating that the banking services indicated are subject to regulatory review and that Saudi Central Bank must be granted full authority to inspect and request information, data and documents at any time and full access to the internal systems, reports and records of the Bank and Agent. In addition, the Agent Banking contract must include a statement indicating that Saudi Central Bank has the power to interrogate the Agent’s staff.
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| | 14. | Saudi Central Bank power to cancel or suspend its non-objection as it deems appropriate pursuant to this Regulation.
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| | 15. | Stating that the Agent will not perform management functions, make management decisions, or act or appear to act in a capacity equivalent to that of a member of management or an employee of the Bank.
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| | 16. | Any other terms or provisions that the Bank or the Agent considers necessary without prejudice to the provisions of laws, regulations, rules and instructions issued by Saudi Central Bank.
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