Effective from 2017-07-09 - Jul 08 2017 To view other versions open the versions tab on the right
The guidelines for contracting such transfer services providers must be observed, provided they include the following:
1)
Transfer services providers to be contracted with is internationally recognized and licensed by supervisory authorities in the country of domicile of such providers.
2)
Banks should submit a prior non-objection request from SAMA in accordance with SAMA Rules on Outsourcing for contracting with money transfer services providers, attached therewith a file that includes the final contract draft to be signed with the services provider, as well as its company brief and a certificate of compliance with AML/CFT.
3)
The business of contracted money transfer services providers related to transactions executed through remittance centers operating in the kingdom should be subject to the supervision and control of the remittance center through which those transfer services providers operate.
4)
Transferring money should fall under the core business of transfer services providers.
5)
Transfer services providers must have in place adequate policies and measures for AML/CFT and combating embezzlement and financial fraud.
6)
The contract to be concluded with the money transfer services provider shall include the following:
a.
Compliance with the Kingdom's local laws and instructions, rules and circulars issued by SAMA.
b.
Taking into account domestic, regional and international requirements, including compliance with international resolutions and the United Nations lists, as well as warning notices issued by international organizations, for example the warning notices issued by FATF.
c.
Holding that the information they receive are subject to banking confidentiality clauses and is only used for authorized purposes.
d.
Ensuring that all necessary prudential measures are applied when providing these services; and their effectiveness in the early detection of suspicious transactions.
e.
The importance of adhering to the application of ‘KYC’ principle and fulfilling due diligence requirement on a continuous basis towards customers and sources and uses of transferred funds.
f.
Commitment to provide SAMA with any requested information.
7-
Linking the systems of money transfer services providers contracted by banks with said banks’ systems so as to reflect all transactions executed through the transfer services provider within the banks’ system.
