200.1.3 Expatriates in Saudi Arabia
| No: 65681/67 | Date(g): 3/7/2019 | Date(h): 1/11/1440 | Status: In-Force |
• Expatriate holding residence permit (Iqama):
The bank may open bank accounts for expatriates holding residence permits (Iqama) after obtaining a copy of Iqama. Such Iqamas might be issued by the Passport Department against the applicable fees or free of charge, such as Iqamas issued to students of universities, students of military colleges, and students of institutes, who obtained scholarships or training approvals, or might be issued by the Protocol Affairs at the Ministry of Foreign Affairs or the like. In addition, the bank should obtain the expatriate’s address in Saudi Arabia as well as his/her address in his/her mother country.
• Expatriate dependents (whose Iqamas include a statement indicating that they are dependents and are “not authorized to work”):
| The bank may open bank accounts for expatriate dependents whose Iqamas indicate that they are dependents and not authorized to work in Saudi Arabia. The bank shall comply with instructions related to expatriates’ bank accounts. If the bank suspects that the bank account is being used for illegal purposes or it finds out that the deposited funds are from the work of those dependents and not from their families, then the bank must inform the Saudi Arabia Financial Investigation Unit (SAFIU). | ||||
| - | If the expatriate whose Iqama indicates that he/she is a dependent and not authorized to work in Saudi Arabia is a son/daughter of a Saudi mother but a Non-Saudi father, then he/she is allowed to open a salary account, provided that he/she submits official documents proving that his/her mother is Saudi. The requirements mentioned above shall also be fulfilled. | |||
| - | If the expatriate whose Iqama indicates that he/she is a dependent and not authorized to work in Saudi Arabia works for a licensed educational institution and wishes to open a salary account, then the bank account might be opened for him/her upon satisfying the following requirements: | |||
| 1. | Submitting a copy of Iqama. | |||
| 2. | Completing an account opening form by the customer for the purpose of receiving salary from the contracting institution. | |||
| 3. | Providing a written undertaking by the customer to notify the bank upon the expiration or termination of his/her contract. | |||
| 4. | Submitting a letter of employment from the general management of the educational institution contracting with the account applicant. Such letter should provide basic information about the expatriate and his/her salary and bonuses and should also state that he/she is currently employed by the educational institution by an “Ajeer” notice (work permit). Moreover, the letter should indicate that it is provided for the purpose of opening a salary account. Further, the following documents should be attached to the letter: | |||
| a. | A copy of the valid Ajeer notice issued in the expatriate’s name and verified by the contracting institution. | |||
| b. | A copy of the contracting institution’s license as issued by the supervising body. | |||
| c. | A copy of the validity certificate issued in the expatriate’s name by the supervising body and verified by the contracting institution. | |||
| d. | An undertaking to notify the bank upon expiration or termination of the account holder’s contract. | |||
| 5. | The bank account shall be valid for a period identical to the validity period of the account holder’s Iqama or Ajeer notice, whichever expires first. | |||
| 6. | The approval of compliance department for opening the bank account shall be obtained. | |||
| - | If the expatriate whose Iqama indicates that he/she is a dependent and not authorized to work in Saudi Arabia is a minor (under the age of 15 years), then his/her account shall be operated by the main, sponsoring expatriate residing in Saudi Arabia. However, if the main expatriate is a woman and her husband is her escort, the minor’s account in this case shall be operated by his/her father since he is the legal guardian. If the minor reaches the age of 15 Hijri years, receives an independent Iqama, and applies directly for opening a bank account, the bank shall seek the approval of the guardian or curator for opening the account. In this case, no checkbook shall be issued until the minor reaches the age of 18 years. | |||
| - | This type of bank accounts shall be classified as a high-risk account. | |||
• Expatriate with a temporary (90-day) work visa in his/her passport:
| Bank account may be opened for expatriates whose employers are individuals, institutions, official entities, or companies in order to transfer or deposit their salaries and financial entitlements during the temporary residence period in accordance with the following: | |
| 1. | The account is to be opened for the expatriate employee upon receiving an official request from the employer. Such request shall state that the holder(s) of the account(s) works/work for the employer and that no Iqama was issued for the expatriate due to not completing 90 days from the date of arrival in Saudi Arabia. The request shall also specify the occupation and task of the expatriate, why the account is needed, sources of money to be deposited in the account, and his/her salary. The bank shall check the original passport(s) including work visa. |
| 2. | The employer shall undertake to notify the bank once the account holder leaves Saudi Arabia (on a final exit visa) during this period (the first three months of arrival in Saudi Arabia). Once notified, the bank must immediately freeze the account and contact the customer to submit to him/her the balance left and close the account. If the communication is not possible, the account freeze should continue and after the elapse of 90 days starting from the end of the 3-month period (the first three months from the date of expatriate’s arrival) or starting from the date of the account freeze due to the expatriate’s final exit, the account shall be dealt with according to the requirements of Rule (3) on Freezing of Bank Accounts. |
| 3. | The bank must meet the expatriate (account holder) in person and obtain his/her signature on an account opening agreement. The bank must also obtain documents and data needed to open the account (except Iqama). The customer shall sign an undertaking to submit his/her Iqama once issued (during the three legal months). The bank may also request the customer to agree on any other requirements the bank deems appropriate in relation to balance, transfer, and/or account closing. Additionally, the bank should inform the customer that his/her account will be frozen if his/her Iqama is not submitted during the first three months of arrival in Saudi Arabia. |
| 4. | Approval of the manager of compliance department at the bank shall be sought. |
| 5. | This type of bank accounts shall be classified as of high risk. |
| 6. | The bank account shall be valid for a period identical to the validity period of the visa. Only issuing an ATM card and performing transfer transactions are permitted for the account. No checkbooks, credit cards and/or any other services shall be issued or provided for this account during this period. |
| 7. | Operating the account after three months from the expatriate’s (account holder) arrival in Saudi Arabia is not allowed unless the bank meets the account holder and verifies his/her Iqama. After meeting the customer and verifying his/her Iqama, his/her account will have the same procedures implemented on other bank accounts. |
• Expatriates with a visit visa to carry out certain assignments for entities in Saudi Arabia:
| A bank account may be opened in Saudi riyal for an expatriate holding a government visit visa to carry out certain assignments for a government or quasi-government entity or for any other juristic entity contracting with a government or quasi-government entity in Saudi Arabia, for an expatriate holding a business visit visa (provided for employees of companies and institutions), or for an expatriate holding scientific or professional visit visa and the like after fulfilling the following requirements: | |
| 1. | A copy of the valid passport including the visit visa should be submitted. |
| 2. | A letter from the inviting entity (endorsed by the Chamber of Commerce if it is a business visit visa) should be submitted. The letter should clarify the mission of the individual, the reasons for not issuing a residence permit for him/her, why the account is needed and its validity period, and sources and amounts of money to be deposited therein. |
| 3. | The account shall be valid for a period identical to the validity period of the visa. If the visa is for a single entry, the account shall be immediately closed once the visa expires. If the visa is for multiple entries, the account validity shall be for (6) months from the date of entry to Saudi Arabia and should be renewed for the same period or less, taking into consideration the validity of the visa. The bank must obtain a written undertaking from the inviting entity to inform the bank when the expatriate leaves Saudi Arabia permanently in order to close the account. |
| 4. | It is permitted to provide the expatriate with an ATM card that only operates on the Saudi Payment Network (MADA). However, no checkbook shall be provided for this account. |
| 5. | This type of accounts shall be classified as of high risk and shall be subject to the supervision of compliance officers. |
| 6. | Approval of the manager of compliance department for opening the account shall be sought. |
| 7. | If the expatriate leaves Saudi Arabia permanently and then comes back with a new visa to carry out any of the assignments mentioned above for the same entity or for any other entity, the bank shall apply all the requirements set forth in the paragraphs above. The old account shall be treated according to Rule (3.2) on General Instructions for Freezing of Bank Accounts stated in Chapter II on Supervisory Rules and Controls, taking into account the account balance. |
• Foreign pilgrims:
A foreign natural person having a Hajj identification card issued by the Ministry of Hajj and Umrah, pilgrim guiding institutions, or others, permitting him/her to perform Hajj, is not allowed to open bank accounts.
• Transfer via bank account or transfer membership:
After the elapse of the first three months of the expatriate’s arrival in Saudi Arabia or after he/she obtains an Iqama during that period, all banks are prohibited from carrying out any transfers, issuing any checks or exchanging any currencies for the expatriate, except through a bank account opened in his/her name. Customer number is sufficient in the Express Transfers System as a substitute for bank account for customers of this service only, provided that the bank obtains the personal data and Iqama of customers. In addition, customer number should be based on Iqama number. Moreover, the Transfers System should be subject to regulatory procedures for accounts, such as freezing, verification of the ID validity, checking customer’s name against his/her passport for expatriates holding non-magnetic Iqama, limits placed on concerned customers, etc.
• Transfer limit during the 3-month work visa:
The maximum amount of a transfer or a check which banks may effect for an expatriate during the first three months of his/her arrival in Saudi Arabia for work and before obtaining an Iqama and opening an account in his/her name shall be ten thousand Saudi riyals (SAR 10,000). This limit is applicable to professionals, such as physicians, engineers and senior administrative officers whose salaries are commensurate with such limit or are above. For individuals in normal jobs or workers, the maximum limit of each transfer should be commensurate with the type of profession specified in the work visa placed in the passport. The bank shall use the passport number as a reference for the transactions executed during such period.
• Expatriates exempted from working for their sponsors:
An expatriate having a valid Iqama including a statement to the effect that its holder is exempted from working for his/her sponsor may open a bank account by providing his/her Iqama and an employment letter from the person or entity for which he/she works.
• Expatriates working in Saudi Arabia without Iqama:
No bank account may be opened for an expatriate working under (monthly or annual) employment contract for any entity in Saudi Arabia without a valid Iqama. In this case, an explicit approval from the Ministry of Interior must be obtained for each case and should then be communicated to the bank through SAMA along with any applicable procedures.
• Valid Iqama holders without passport:
Bank accounts may be opened and maintained for expatriates having valid Iqama including the word “without” next to the “nationality”, by providing their Iqama only. No passport, copy or number thereof, shall be required.
• Expatriates having Saudi passports
No bank account may be opened by presenting a Saudi passport issued to some expatriate individuals. Such an expatriate must present a valid Iqama, and the validity of his/her Saudi passport shall not be required. However, where the expatriate has no identification document except his/her Saudi passport, the approval of SAMA shall be obtained for opening the account. Such approval shall include a reference to the approval of the Ministry of Interior. Once the account is opened, SAMA shall be provided with the number of the account and address of the expatriate. The bank shall classify this type of accounts as of high risk to be subject to continuous monitoring.
• Authorization by expatriate to others, or opening joint accounts by expatriate:
| An expatriate may neither authorize another person to open a bank account in his/her name, nor may he/she open a joint account with others, except in the following cases: | |
| - | The expatriate husband and his expatriate wife and vice versa, and their first-degree expatriate relatives. |
| - | The female expatriate working in Saudi Arabia and her legal escort, provided that the Iqama of the legal escort or any other official document states that he is the legal escort of the female expatriate. |
| - | The female expatriate and her Saudi husband. |
| - | The female expatriate and her Saudi father, mother, son or daughter. |
| - | The male expatriate and his Saudi wife. |
| - | The male expatriate and his Saudi father, mother, son or daughter. |
| The male or female expatriate and his/her abovementioned relatives should hold valid Iqamas. The bank should record the number of Iqama for each male or female expatriate as an electronic reference number for the expatriate. | |
• Standing instructions on the account of an expatriate*:
Expatriates may set up and renew standing orders for one year only through e-banking services. The personal information of the client shall be verified using documents, data or information acquired from a reliable and independent source. Such information shall be documented as well. Expatriates may set up standing orders to make regular domestic or international money transfers. The standing order payment shall be made once a month only and the amount shall be determined by the bank according to the client’s risk assessment.
* This paragraph has been amended according to the circular No.(42078428), Dated 10/11/1442H, corresponding to 19/06/2021G.