Banks may open Saudi riyal accounts for government entities subject to the following:
|
| 1. | The government entity shall submit an account opening application to the Ministry of Finance (the Deputyship for Financial and Accounts Affairs). In order to complete the opening application process or activate the account, a list of existing bank accounts with SAMA and other banks must be attached so as to avoid replication of accounts with the same purpose. After considering the application, the Ministry of Finance shall inform SAMA about opening the account, and the government entity shall provide the bank with the names, specimen signatures and ID copies of the authorized persons.
|
| 2. | Name of the beneficiary shall be included in the payment order related to deposits to the account (Due to the order of the bank, Account No…).
|
| 3. | The bank account shall be in the name of the government entity, not a natural person or his/her position or job, and its purpose shall be specified in order to differentiate it from other accounts.
|
| 4. | If a government entity wishes to change its account name, it shall submit an application in this regard to the Ministry of Finance (the Deputyship for Financial and Accounts Affairs) to make a decision of approval or disapproval and then notify SAMA of such decision to be communicated to the bank.
|
| 5. | A checkbook shall be requested by an official letter signed by those authorized to withdraw funds.
|
| 6. | Authorization to deposit and withdraw amounts shall be issued by the concerned party. Authorized persons may not delegate their power to others unless authorized to do so by the concerned party. Official letters addressed to the bank by authorized persons to issue bank checks or make internal or external transfers in the official entity’s forms or the approved bank forms may be accepted, provided that such letters are jointly signed by the authorized persons only.
|
| 7. | Withdrawal from the account shall be as per dual control, and in the case of withdrawal by checks, the check shall be jointly signed by the authorized persons.
|
| 8. | E-services provided to government entities must include the following: Viewing and extracting of account statements, internal and external transfers, and payment of bills.
|
| 9. | A government entity may not open any account in a foreign currency unless this is included in an approval given by the Ministry of Finance and communicated to the bank by SAMA.
|
| 10. | Banks may not extend to any government entity any loans or facilities or allow any overdraft of more than the amounts drawn under payment orders upon the Ministry of Finance, whether for salaries or for any other purposes, except on approval of the Council of Ministers.
|
| 11. | Government accounts shall not be transferred from one bank to another unless the approval of the Ministry of Finance is obtained therefor and communicated to the bank through SAMA. In addition, there shall be cogent reasons supporting the transfer. If the purpose of the account is fulfilled and the account is no longer needed, the Deputyship for Financial and Accounts Affairs at the Ministry of Finance shall be informed in order to request SAMA to close the account.
|
| 12. | Signatories of the accounts of Saudi government entities and agencies shall be Saudis only. No authorization shall be granted to no-Saudis in this regard.
|
