Referring to Article 2 of the Banking Control Law, which prohibits conducting banking activities in the Kingdom without a license, as well as the continuous warning and awareness circulars issued by SAMA on the aforementioned subject, most recently Supplementary Circular No. 371000053452, dated 08/05/1437H, and the joint public warning statement from SAMA and the Capital Market Authority (CMA) issued on 19/12/2016G regarding this matter, and in light of the responsibility placed on the financial sector, continuing its role in protecting citizens and residents from dealing with what these companies offer on suspicious websites or through illegal local and foreign intermediaries promoting their activities, SAMA wishes to inform and emphasize the following:

First: Prohibited activities in the Kingdom related to the above-mentioned issue are as follows:

1. Currency trading companies (FOREX) and similar entities that do not have contracts with licensed banks, investment firms, or money exchangers operating in the Kingdom, especially task delegation contracts, and are promoting and marketing their activities by any means (websites, phone calls, etc.), either by directly inviting people to deal with them or by exploiting relationships and services provided by the local financial sector*.
    
2. Unlicensed individuals (natural or legal persons) engaging in banking activities in the Kingdom, promoting currency trading companies, and acting as direct or indirect intermediaries and brokers, who use their accounts and financial relationships within the local financial sector in the Kingdom for purposes contrary to the original intent of opening those accounts and establishing those relationships.
    
3. Individuals or entities conducting direct transfers to currency trading companies (FOREX) outside the Kingdom using their accounts and financial relationships with licensed banks and
   money exchangers in the Kingdom in transactions, for purposes unrelated to the original intent of opening those accounts (whether personal or commercial).

Second: Required actions and precautions:

1. Adherence to the Rules Governing the Opening of Bank Accounts in the Kingdom, particularly the prohibition on opening accounts for non-residents, and monitoring the usage of accounts strictly for their intended purposes.
    
2. Compliance with the Anti-Money Laundering Law and its regulations, as well as the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Guide for banks and money exchange offices and branches of foreign banks operating in the Kingdom of Saudi Arabia regarding reporting to the General Department of Financial Intelligence about suspicious transactions and accounts, including transfers linked to currency trading outside the Kingdom.
    
3. Monitoring customer transfer requests abroad. If it is determined that the transfer is intended for currency trading companies (FOREX), the transfer should be halted, and the customer should be informed, the relationship reassessed, and due diligence applied.
    
4. Monitoring inbound transfers from currency trading companies abroad. If it is determined that the source is related to dealings with such companies, the transfer should be returned to the sender.
    
5. Updating the list of companies previously circulated by SAMA regarding violating companies and linking it to electronic systems to allow branches, transfer centers, and regulatory bodies to track illegal transfers.
    
6. Being aware that some currency trading companies (FOREX) may change their names periodically to avoid restrictions announced under their previous names, continuing their fraudulent activities against citizens and residents.
    
7. Regularly informing SAMA about any new violating companies not previously listed.
    
8. Sharing information and anti-fraud measures among banks through joint banking committees (compliance, operations, financial crime prevention), which are held monthly.
    
9. Training specialized employees from time to time on related violations, methods of committing them, and ways to address them.
    
10. Educating customers about the risks of dealing with unlicensed individuals, websites, and phone calls promoting investment offers in currency trading, and informing them that any transfers related to currency trading companies will be canceled. This awareness should be conducted through appropriate means.

*According to Circular No. 41027772 dated 21/04/1441H, and given the presence of several global investment companies engaged in foreign exchange (FOREX) trading that are registered with international financial market regulatory bodies in their respective countries, you can find a list of regulatory authority websites through which you can view the list of licensed companies to exclude them from the blacklist.