Section 14: Wire Transfer

No: 18318/486

Date(g): 17/11/2019 | Date(h): 20/3/1441

Effective from 2019-11-17 - Nov 16 2019
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When carrying out cross-border or domestic wire transfers in any currency, including serial and coverage payments, that are received, sent or processed by a financial institution in Saudi Arabia, the financial institution should obtain information of the wire transfer originator and beneficiary, including cases in which a credit card, debit card, prepaid card, mobile phone, or any other similar digital prepaid or postpaid device is used.
Article (10) of the Anti-Money Laundering Law and Article (68) of the Law on Combating Terrorism Crimes and Financing state the obligations of the financial institution when conducting cross-border and domestic wire transfers in any currency, including serial payments and coverage payments, that are received, sent or processed by a financial institution in Saudi Arabia.
14.1	Before processing a wire transfer, the financial institution should obtain information about the wire transfer originator and beneficiary, keep that information with each wire transfer, and verify that information. Such information shall at least include the following:
	a)	Full name of the wire transfer originator.
	b)	The originator’s account number used for conducting the transaction, and if there was no account, a transfer number must be included to allow the transaction to be tracked.
	c)	The originator's address, ID number, customer identification number, or place and date of birth.
	d)	Full name of the wire transfer beneficiary.
	e)	The beneficiary’s account number used for conducting the transaction, and if there was no account, a transfer number must be included to allow the transaction to be tracked.
	f)	The purpose of the wire transfer and the relationship between the originator and the beneficiary.
14.2	Before executing a wire transfer, the financial institution should obtain a declaration from the customer stating his knowledge that Saudi Arabia’s laws prohibit the transfer of funds without the customer’s knowledge of the beneficiary (transferee), without a legal relationship with the beneficiary, or without a legitimate purpose.
14.3	In cases where several individual cross-border wire transfers are combined from a single originator in a combined transfer to beneficiaries, the financial institution responsible for originating the transfer shall verify the information attached, including the originator’s previously verified information as well as the beneficiary’s full information, as stated in Paragraph (14.1). This is to allow tracking of the transfer within the country in which the beneficiary is located in addition to the originator’s account number and the reference number of the transfer.
14.4	In the case of a domestic wire transfer and when the financial institution originating the transfer was able -through other means- to provide all information about the wire transfer originator and beneficiary to the financial institution receiving the transfer or the competent authorities, the financial institution is exempt from adding information to each wire transfer. The financial institution originating the transfer may include an account number or a transfer number that allows linking the transaction with relevant information about the wire transfer originator or beneficiary. Furthermore, the financial institution originating the transfer should provide all information about the wire transfer originator and beneficiary within three working days starting from the date of receiving a request for that information from the financial institution or the competent authority.
14.5	The financial institution and the intermediary financial institution receiving a wire transfer from outside Saudi Arabia should prepare and implement policies, procedures and controls for the following purpose:
	a)	To identify wire transfers that lack the required information regarding the originator or beneficiary.
	b)	To determine cases of executing, rejecting or suspending a wire transfer due to lack of required information related to the originator or beneficiary based on risks.
	c)	To conduct adequate monitoring based on risks that may include restricting or terminating the business relationship.
14.6	The financial institution receiving a wire transfer from outside Saudi Arabia shall take reasonable measures to identify transfers that lack the required information relating to the originator or beneficiary. These measures may include follow-up procedures after implementation or during implementation, as applicable. In the event of not having the identity of the beneficiary previously verified, the financial institution receiving a wire transfer shall verify the beneficiary’s identity and keep this information as stated under the Record Keeping Section.
14.7	The confidentiality requirements stated under domestic laws do not preclude the financial institution from exchanging information with another local or foreign financial institution that is processing any part of the transaction as required under the Wire Transfer Section.
14.8	The scope of the Wire Transfer Section requirements does not include the following:
	a)	Transfers that result from a transaction carried out using a credit card, debit card, prepaid card, mobile phone, or any other similar digital prepaid or postpaid device only for the purchase of goods or services, provided that the credit or debit or prepaid card number accompanies the transfer resulting from the transaction.
	b)	Transfers that constitute a transfer or settlement between two financial institutions when the originator and the beneficiary are financial institutions acting on their own behalf.
14.9	In the event that the financial institution is unable to comply with the requirements of Paragraph (14.1), it should not perform the wire transfer.
14.10	The financial institution and the intermediary financial institution should not accept executing a cross-border wire transfer in any currency for charitable purposes⁶ regardless of the source of funds or the beneficiary, taking into account what is stated in Paragraph (14.7).
14.11	The financial institution and the intermediary financial institution receiving wire transfers from outside Saudi Arabia shall not accept these transfers in any currency for charitable purposes, regardless of the source of funds or the beneficiary, taking into account what is mentioned in Paragraph (14.7).
14.12	Business of the intermediary financial institution providing wire transfer services related to transactions executed through the financial institution, with which it has a contract, should be subject to supervision and control.
14.13	The information exchanged with a correspondent financial institution or an intermediary financial institution providing wire transfer services must only be used for authorized purposes subject to the terms and conditions of confidentiality and should never be used for any other purposes.
14.14	The financial institution and the intermediary financial institution shall not receive a wire transfer from outside Saudi Arabia to a beneficiary in a financial institution abroad if the wire transfer is in a currency other than the Saudi riyal.
14.15	The financial institution may receive a wire transfer from outside Saudi Arabia to a beneficiary in a financial institution abroad only when the wire transfer is in the Saudi riyal currency, taking into consideration what is stated in Paragraphs (14.1), (14.5) and (14.8).
14.16	The financial institution and intermediary financial institution receiving a wire transfer in the Saudi riyal currency from outside Saudi Arabia to a beneficiary in a financial institution abroad shall clearly detail the purpose of the transfer.

⁶ In the event that a financial institution receives an approval from SAMA indicating that some parties are allowed to transfer gifts, subsidies, or donations to a beneficiary, whether it be a legal or natural person, in accordance with certain conditions, the financial institution must act according to that approval.