2.4.2 Rules for Opening Prepaid Electronic Records where the Contracting Entity a Juristic Person

No: BCT/15631

Date(g): 2/5/2012 | Date(h): 11/6/1433

Status: Modified

For prepaid electronic records where the contracting entity is a juristic person and where the prepaid electronic records is not using a simpler form of KYC, the individual(s) who will be provided the payment service product shall be the person for whom the issuer will need to identify the required information pertinent to doing financial business with them as a customer for KYC purposes. The individual will also be the person against which the required transaction monitoring of KYC, AML and CTF are applied.

Included within these are all commercial prepaid payment services where the contracting entity is a Juristic person. This includes salary payment service products, prepaid procurement cards (petty cash payment products) with a single payment device attached, as well as payment service products with sub-records.

Specifically account opening procedures must be compliant with section 300 of the 'Rules Governing the Opening of Bank Accounts and General Operational Guidelines in Saudi Arabia’ as issued by SAMA.

For the opening of accounts of prepaid payment service products where the contracting entity is a Juristic person the following conditions shall apply;

1-	A master account shall be opened under the name of the Juristic person for each payment service product contracted by the contracting entity.
2-	Electronic record or ‘sub-records’ (sub-accounts of the master account) shall be opened for every payment service device.
3-	Such payment service product shall be branded for use at SPAN access points.
4-	Sub-records’ (the payment device accounts) shall not be allowed to accept cash deposits or any credit entries other than the amounts transferred thereto from the master account of the contracting entity.
5-	No monthly statements shall be required for issue for such sub-record customers (the cardholder) unless specifically requested by the sub-record customer. Instead, the cardholder can get an ATM-generated brief transaction statement.
6-	The signature specimens of the customers of such sub-records shall not be entered into the issuer's computer system.
7-	(a) The contracting entity shall provide the issuer with completed application forms and copies of the personal documents of its personnel and/or beneficiaries to which payment services are to be provided indicating that they are checked and found valid and identical to their respective originals, that the listed personnel and/or beneficiaries work under its sponsorship and/or that they are under its responsibility. The contracting entity must be compliant with all applicable rules. OR (b) The contracting entity shall provide the issuer with a list of the relevant ID numbers of their employees and/or beneficiaries sourced from their valid government identification (e.g. Iqama number). The issuer representative shall source the relevant employee and/or beneficiaries’ information by reference to the Ministry of Interior data held at the National Information Centre and produce the employee and/or beneficiary sub-record application form for later signature by the employee and/or beneficiaries (refer to xii below).
8-	The authorized representatives of the issuer shall review the originals of the valid government identification of the cardholder and attest the authenticity of the provided copies attached to the applications of opening the sub-records.
9-	A form of opening a sub-record or card account for each employee and/or beneficiary shall be signed by the employee and/or beneficiary (only).
10-	No such an individual employee and beneficiary may have more than one sub-record per payment service agreement with the contracting entity.
11-	Transactions of the records of such cards shall be limited to:
		-	Withdrawing (via ATM and/or POS) the amount(s) of the salary and/or other amounts payable to the card holder.
		-	PoS purchase.
		-	Remittance outside of the Kingdom by the employee’s membership of a remittance service if included in the contracted payment services agreed with the contracting entity
		-	Payment of bills via SADAD if included in the contracted payment services agreed with the contracting entity
		-	For payroll cards only: Transfer from card record to employee’s own current account, in the case of the current account being in the same issuer if included in the contracted payment services agreed with the contracting entity.
12-	Such cards can be delivered to concerned employees/beneficiary by juristic person whereas personal identification numbers (PIN’s) of the cards must be delivered by the issuer (the issuer branches or representative) for the primary cardholder under a written form to be kept in the master account file.
13-	A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued from time-to-time by the SPAN scheme.
14-	Card expiry is to be within 3 years of issue.
15-	For payroll cards:
		-	Once the cardholders valid Government issued identity card has expired the card has to be stopped.
		-	The issuer shall provide necessary technical support and make available sufficient ATM access to serve the above-mentioned customers as near as possible to their work locations.
16-	The above-mentioned service shall be rendered to eligible Juristic persons having a relationship with the issuer.
17-	All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.

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