300.1.5.6 Cooperative Associations and Funds
| No: 65681/67 | Date(g): 3/7/2019 | Date(h): 1/11/1440 | Status: In-Force |
• Cooperative associations
a. Cooperative associations under establishment:
| A Saudi Riyal trust account may be opened for a cooperative association under establishment for the purpose of capital raising. The following requirements shall be satisfied: | |
| 1. | The bank shall receive a letter from the competent authority at the Ministry of Human Resources and Social Development (MHRSD), stating that the cooperative association is under establishment and that the MHRSD agrees on opening an account for the association to raise its capital. The letter shall specify the name of the cooperative association under establishment and the name and ID number of the founding committee’s chairman, who is in charge of communicating with the bank for the account opening. In addition, a copy of the association’s preliminary memorandum of association shall be submitted to the bank with the letter. |
| 2. | The trust account shall be opened only for six months. The bank may extend this period for another six months upon receiving a request from the concerned authority at the MHRSD. |
| 3. | If the association is not registered and established within the period specified in Paragraph (2) above, amounts deposited in the trust account shall be returned upon the approval of the concerned authority at the MHRSD. The approval shall specify the method of returning such amounts and their recipient. |
| 4. | If the association is registered and established, the bank shall fulfill the requirements of Paragraph (b) below and shall convert the trust account into a current account. |
b. Licensed cooperative associations:
| The bank may open a Saudi Riyal account for cooperative associations upon fulfilling the following conditions and requirements: | |
| 1. | Receiving a request of the association’s board chairman to open a bank account; the account to be opened shall be managed under a joint signature of the board chairman (or his/her vice-chairman) and the treasurer (principal signatory). |
| 2. | Obtaining a copy of the association registration and establishment decision (the association registration certificate) issued by the MHRSD. |
| 3. | Obtaining a copy of the entity’s board formation decision that is issued, approved or attested by the MHRSD. |
| 4. | Obtaining a copy of the entity’s memorandum of association. |
| 5. | Obtaining a copy of the entity’s bylaws. |
| 6. | Obtaining copies of the board members’ IDs. |
• Cooperative funds:
| The bank may open accounts for the cooperative funds upon fulfilling the following conditions and requirements: | |
| 1. | Obtaining a copy of the decision allowing or approving the establishment of the fund, issued by the concerned minister, general director or sector head. |
| 2. | Naming the fund after the organization establishing it. |
| 3. | Ensuring that the account is opened and operated by the manager and treasurer of the organization that owns the fund. |
| 4. | Obtaining a copy of the regulations governing the fund, issued by the concerned government body. |
| 5. | Obtaining a copy of the regulations governing the fund, issued by the concerned government body. |