2.4.4 Rules for Opening Prepaid Electronic Records where the Contracting Entity is a Householder

No: م أ ق/15631

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

Status: In-Force

Effective from Apr 20 2025 - Apr 19 2025
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For prepaid payment products where the contracting entity is an individual householder and the contracting entity has satisfied the normal SAMA Account Opening and KYC requirements, as identified at 2.4.1. The contracting entity will also be the person against which the required transaction monitoring of KYC, AML and CTF obligations are applied.

Included within these are all retail prepaid payment services where the contracting entity is a householder who offers payments cards to household members, for the purpose of effecting purchase payments and cash withdrawals using a SPAN debit card drawn on monies for which the contracting entity is the beneficial owner.

Such household members shall be either:

A family member (e.g. wife, son) or have a legal relationship with the contracting entity (e.g. legal guardian).
A contracted employment relationship, where the cardholder is under the sponsorship of the contracting entity.

For such a payment service product the following conditions shall apply;

1-	A master account shall be opened under the name of the contracting entity which is directly related to the bank account of the contracting entity.
2-	Electronic record or ‘sub-records’ (subaccounts of the master account) shall be opened for every payment service product issued.
3-	Such payment service product shall be branded for use at SPAN access points only.
4-	Sub-records’ (card 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-	Sub-records credits shall not exceed a cumulative maximum of SAR 13,000 in any twelve month period.
6-	No monthly statements shall be required for issue for such sub-record customers (cardholders) unless specifically requested by the contracting entity. Instead, the cardholder can get an ATM-generated brief transaction statement.
7-	The cardholder shall not be required to be subjected to the standard KYC requirements.
8-	The contracting entity shall remain liable and responsible for all transactions effected by the cardholder as evidenced through the sub-record.
9-	The householder has to provide the issuer with completed application details and the National Identification Number for cardholders which have to be validated by the issuer.
10-	In the event of a change of cardholder the contracting entity has to submit the National Identification number of the new cardholder in line with condition ix.
11-	Transactions of such prepaid payment services shall be limited to:
		-	Domestic withdrawals (via ATM and PoS purchase)
		-	POS purchase
		-	Transfers to and from the prepaid payment service record to the contracting entity's own current account.
12-	Issuers will issue cards and personal identification numbers (PIN’s) to the contracting entity for delivery to cardholders (e.g. Household members).
13-	Once the cardholders valid Government issued identity card has expired the card has to be stopped.
14-	A special design shall be adopted for the above-mentioned cards which is consistent with the design specification for SPAN Prepaid cards issued by the SPAN scheme.
15-	Card expiry is to be within 3 years of issue.
16-	All programs must comply with the regulatory rules for prepaid payment services in the Kingdom of Saudi Arabia.