Verifying the Identity of Customers via a Reliable Source
| No: 42031578 | Date(g): 27/12/2020 | Date(h): 13/5/1442 | Status: In-Force |
Translated Document
Based on SAMA's keenness to improve the level of practices and procedures in the financial institutions under its supervision, and its efforts to support and develop the financial sector while considering risks, and regularly reviewing updates to ensure necessary measures are taken to raise the maturity level of these financial institutions. This involves periodic monitoring and issuing related instructions. Based on the regular monitoring of fraud cases in the financial institutions, which showed the need to enhance the principle of Know Your Customer (KYC) by including an additional verification mechanism in the procedures for opening accounts/memberships in person and remotely, as well as for the existing accounts/memberships of current customers by linking the account owner's registered mobile number with the financial institution according to the number verified by "the Tahaqaq service", in order to support the verification process of the information and help reduce identity theft by enhancing procedures and relying on trusted and accredited national sources. Therefore, financial institutions are required to do the following:
| 1- | Ensuring that the mobile number linked to the account or membership in the financial institution currently belongs to the same person by matching the account holder's ID number with the mobile owner's ID number through the "Tahaqaq Service," so that the matching process includes all customer accounts/memberships. |
| 2- | Evaluation of the current situation and identification of the number of customers and accounts/memberships with non-matching numbers currently registered with the financial institution, based on the information provided in (First) for the accounts/memberships of existing customers. |
| 3- | Providing SAMA with the evaluation results, as well as the financial institution's corrective plan to ensure the alignment of the account holder's identity with the identity of the mobile number holder associated with the account for all accounts/memberships. |
| 4- | Verifying the customer's registered mobile number with the "Tahaqaq Service" is part of the procedures for opening bank accounts or new memberships. |
| 5- | The commitment to apply the above within a period not exceeding 45 days from its date. |
| 6- | Ensuring compliance with the instructions stated in Account Opening Rules and other related instructions and their effectiveness in the financial institution. |
For your information and action accordingly, please note that SAMA will take the necessary legal measures in the event of non-compliance with the procedures determined within the specified timeframe mentioned above.