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300.2.1.2 Bank Accounts of GCC Juristic Persons for the Purpose of Trading in Securities Listed in the Saudi Stock Exchange

No: 65681/67 Date(g): 3/7/2019 | Date(h): 1/11/1440

Effective from Jan 01 2024 - Dec 31 2023
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Bank accounts may be opened for these juristic persons after carrying out and providing the following: 
 
 -An application for opening a bank account shall be submitted, specifying that it is for the purpose of investment in joint-stock companies shares or securities. The bank shall ascertain that the investment purpose conforms with the company’s objectives as specified in its memorandum of association and license. It shall also ensure that the company’s memorandum of association and articles of association are free of any restrictions that might prevent or limit the company’s ownership of shares of joint-stock companies.
 

a. GCC companies:

1.A copy of the license / commercial register issued by a competent government authority in the GCC country of residence and attested as a true copy of the original.
 
2.The company’s articles of association or memorandum of association, or the decision issued by a shareholders’ association or the company partners, must provide that the company is allowed to invest in securities.
 
3.Real beneficiaries holding ultimate control shall be identified and verified (as a minimum, a natural owner holding 25% as specified in the company’s memorandum of association and its annexes or according to the available data).
 
4.A copy of the company’s memorandum of association and its annexes clearly showing the company’s capital structure and management and that the share of GCC citizens (natural and juristic) shall exceed 50% of the company capital.
 
5.Verifying the identity of board members.
 
6.Copies of IDs of the authorized managers and their nationalities.
 
7.A copy of the authorization issued by the company’s board of directors empowering the persons concerned to manage accounts and investment portfolios, unless such authorization is included in the company’s memorandum of association.
 

b. GCC investment institution:

Documents of establishment which prove that the institution is owned by the government, including its memorandum of association, decision to form its board of directors, names of those authorized to manage the accounts and copies of their ID cards.

c. Pension and social insurance organizations:

Documents pertaining to the establishment of these organizations, board formation decision, names of those authorized to manage the accounts and their authorization decision as well as copies of their IDs.

d. Affiliated investment funds:

1.A copy of the fund’s or the managing fund’s articles of association or memorandum of association and any amendments thereto.
 
2.Documents relating to the license to establish the fund, received either from a capital market authority or a central bank in a GCC Country.
 
3.Names of the board members responsible for managing the fund and its policy.
 
4.The resolution nominating those empowered to operate the fund and copies of their IDs.
 
5.A copy of the fund’s or the managing fund’s memorandum of association and its annexes which clearly show the structure of its capital and its management and that the share of GCC citizens (natural or juristic) exceeds 50%.
 
-The documents mentioned in a, b, c and d shall be received by directly meeting the customers (authorized persons) in person or through a GCC agent.
 
-The AML/CFT form shall be completed by a GCC agent. However, when meeting customers (authorized persons) in person, in the case of a GCC company and an investment fund only, such form shall be completed by these two parties themselves as applicable.
 
-The bank shall apply the KYC principle and exercise due diligence.
 
-The bank shall obtain a declaration from a GCC agent in which the agent undertakes to provide the bank or the supervisory authorities in Saudi Arabia with any information about customer investors at any time upon request. This is in the case that the bank is dealing with a GCC customer through a GCC agent.