Referring to SAMA Circular No. M/107 dated 14/02/1428 H and Circular No. 44102/MAT/830, dated 9/11/1428 H regarding the importance of knowing the status of money transfer companies and agencies operating in the Kingdom and linked to a number of local banks, and clarification of the legal status of companies and financial transfer agencies that deal with licensed local banks and exchange shops.

In view of the potential consequences that may arise when banks and licensed currency exchange shops engage in contracts with international companies specializing in providing remittance services without obtaining prior approval from SAMA, including increased risks and regulatory responsibilities associated with transfer operations for banks and licensed currency exchange shops specifically, and the overall safety and reputation of the banking sector in the kingdom.

Therefore, we would like to emphasize to all banks and licensed currency exchange shops involved in remittance operations the necessity of obtaining approval from SAMA before contracting with any specialized money transfer companies. Banks and licensed currency exchange shops with existing contracts must also review these contracts to ensure they comply with all regulatory requirements in force within the Kingdom, as well as with the related instructions and regulations issued by SAMA. This includes circulars related to remittance operations. Account Opening Rules and The Guidance of Anti Money Laundering and Combating Terrorist Financing and Rules on Outsourcing and then submit it to SAMA to obtain its approval to continue dealing with these companies, and provide feedback on the actions taken in this regard within one month from its date.