Introduction of a Rule Entitled, Collection Accounts for Depositing and Retaining the Funds of Payment Companies’ Clients
| No: 42073085 | Date(g): 1/6/2021 | Date(h): 21/10/1442 |
Translated Document
Effective from 2021-06-01 - May 31 2021
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With reference to Rule No. (300) containing the rules for opening bank accounts for juristic persons, contained within the Account Opening Rules, communicated by SAMA'S Circular No. (65681/67) dated 11/11/1440 H. We inform you that the following has been decided:
1. Creating a rule below the above-mentioned rule No. (300-1-3-7), titled: Collection Accounts for Depositing and Retaining the Funds of Payment Companies’ Clients, according to the attached wording.
2. Adding a definition of Payment Service Providers under Chapter(I) on Definitions as follows: "Any entity qualified and licensed by SAMA to provide one or more payment services in the Kingdom in accordance with SAMA'S relevant instructions".
New Rule No. (300-1-3-7) within Rule No. (300) which includes the rules on the requirements for opening bank accounts for Juristic Persons
300-1-3-7/ Collection Accounts for Depositing and Retaining the Funds of Payment Companies’ Clients
| The collection accounts for depositing and retaining the funds of payment companies’ clients shall be opened and managed in accordance with the following requirements: | |
| 1. | A letter from the Chairperson of the Board of Directors of the company or their authorized representative to the bank, stating the purpose of opening the account under the name “Deposit and Retention of the Funds of (name of payment company)‘s Clients”, and identifying the persons authorized to manage the account. |
| 2. | A copy of SAMA’s non-objection letter to open a collection account for the company for the purpose of depositing and retaining the funds of their clients. |
| 3. | Copies of all the company’s incorporation documents, including the memorandum of association, articles of association and Board formation decision. |
| 4. | Copies of the IDs of persons authorized to manage the account. |
| 5. | The name of the account shall be “Deposit and Retention of the Funds of (name pf payment company)‘s Clients”. |
| 6. | The account shall be separate and independent from the accounts opened for managing the company’s business, including the fees and commissions collected by the company. The account shall not be used for any financial obligations or rights of the company. |
| 7. | Payment transactions and transfer of money to other accounts, other than the payment orders made by clients, shall only be made after submitting SAMA’s non-objection for such transaction. |
| 8. | Cash deposits to or withdrawals from the account shall not be allowed. |