The Customer's Signature on all Pages of Contracts and Agreements
Effective from Jan 31 2025 - Jan 30 2025
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Based on the powers granted to the Central Bank under the its Law issued by Royal Decree No. (M/36) dated 11/04/1442H; the Banking Control Law issued by Royal Decree No. (M/5) dated 22/02/1386H, and in line with the Financial Consumer Protection Principles and Rules, which encourage disclosure, transparency, customer education and awareness, including ensuring that the customer reads all terms and conditions before committing to the services and products provided by the financial institution, which are referred to in the third section (general conduct rules) of the Financial Consumer Protection principles and rules,
In order for the Central Bank to ensure that the customer (the natural person*) who deals with financial institutions receives fair treatment with transparency and honesty, banks and financing companies shall obtain the customer’s signature on all pages of contracts and agreements to which he/she is a party. The financial institution has the option of applying this requirement to legal persons, while emphasizing the financial institution’s responsibility for the risks related to legal person customers not signing all pages of contracts and agreements.
Pursuant to SAMA's Circular No. (29811/67) dated 11/05/1493H, and to facilitate the process of opening bank accounts, it has been decided to allow the client to sign only once on the last page of the bank account opening agreement instead of signing each page, according to the following controls:
| First: | Each agreement must have a reference number (issuance number) clearly and prominently written on every page, including the last page signed by the client. |
| Second: | The total number of pages of the agreement must be clearly and prominently stated on the page where the client signs. |
| Third: | The bank must retain all models of bank account opening agreements in their various versions and updates, and publish them on the bank's website for clients to access and read. |
| Fourth: | The last page signed by the client must include a statement confirming that the client has reviewed and agrees to all terms of the agreement. |
And pursuant to SAMA's circular N0. (6013/67) dated 01/02/1441H , SAMA emphasizes that all banks operating in the Kingdom must adhere to the aforementioned instructions. It is also important for relevant departments to educate branch staff that the customer needs to sign only once on the last page of the bank account opening agreement. Please note that SAMA will take legal action if there is non-compliance.
*According to Circular No. (391000080993) dated 19/07/1439H.