| 1. | The bank account shall be operated originally by the account holder or other persons authorized by the account holder and approved by the bank. Where applied, the authorization remains valid until the account holder notifies the bank of its cancellation, it expires (after five years), or the authorized person’s ID expires and no renewed ID is presented to the bank. The authorization for operating and cancelling the bank account shall be granted through a power of attorney or an authorization letter prepared at the bank. E-services may be used to verify the authorization.
|
| 2. | Saudi individuals (whether account holders or authorized to operate the account) are not allowed to operate bank accounts, encash personal checks, make transfers, or carry out any other credit transactions to their order or to the order of a third party unless their valid national IDs are registered in the bank’s automated system. The exceptions to this rule are customers of bank branches at airports, who are traveling abroad; in such case, the customer is required to present his/her passport and boarding pass, and the bank branch shall in turn check customer’s name against documents submitted.
|
| 3. | The authorization to operate bank accounts on behalf of juristic entities shall be granted by competent individuals who are permitted to give such authorization. The official approval for such authorization shall be granted by the concerned public or private entity. The approval may come from the board of directors, the partners, the employer, any person designated by the owner (or the person in charge) of the entity, a party determined in the agreement concluded between the bank and the concerned entity, or other parties as per the jurisdiction.
|
| 4. | Authorization by a Saudi (natural or juristic) person to a non-Saudi or non-GCC individual to manage his/her accounts shall be subject to the following conditions:
|
| | • Natural persons and their sole proprietorships:
|
| | Any authorization granted by a Saudi individual to a non-Saudi or a non-GCC individual to operate his/her personal accounts shall not be accepted by the bank. The only exception is when a Saudi individual authorizes his/her non-Saudi wife/husband, father, mother, son or daughter, provided that the authorized person has a valid Iqama.
|
| | • Companies, factories, joint ventures, international trademark agencies, and other similar institutions:
|
| | *Companies may authorize an expatriate employee who is under their sponsorship and residing in Saudi Arabia to manage their bank accounts. However, such expatriate employee may not be authorized to manage the accounts of another company, whether a subsidiary or sister company.
|
| | *Factories and trademark agencies wishing to authorize an expatriate employee working under their sponsorship shall be treated in accordance with their legal status indicated in their licenses/commercial registers issued by the concerned authority. Legal entities licensed as sole proprietorships shall be subject to the provisions of Paragraph (1) of Rule (4) on Natural Persons and their Sole Proprietorships while legal entities licensed as companies shall be subject to the provisions of Paragraph (2) of Rule (4) on Companies.
|
| 5. | Management of investors' accounts under the Foreign Investment Law shall be subject to the following conditions:
|
| | - | The Saudi investing partner may authorize his/her foreign investing partner holding a valid Iqama or any of the non-Saudi expatriate employees working for his/her entity to manage and operate the entity's bank accounts.
|
| | - | The foreign investor may authorize a Saudi and/or a non-Saudi expatriate to manage the entity's bank accounts, provided that the non-Saudi expatriate is an employee of that entity and has a valid Iqama.
|
| | - | The Saudi investor and his/her foreign partner may authorize any other resident party to manage the entity's bank accounts.
|
| 6. | The bank shall not accept any authorization given by an expatriate coming for work or investment in Saudi Arabia to others to manage and operate his/her personal accounts, except in the following cases:
|
| | - | The expatriate husband and his expatriate wife and vice versa, and their first-degree expatriate relatives.
|
| | - | The female expatriate working in Saudi Arabia and her legal escort, provided that the Iqama of the legal escort or any other official document states that he is the legal escort of the female expatriate.
|
| | - | The female expatriate and her Saudi husband.
|
| | - | The female expatriate and her Saudi father, mother, son or daughter.
|
| | - | The male expatriate and his Saudi wife.
|
| | - | The male expatriate and his Saudi father, mother, son or daughter.
|
| | - | The male or female expatriate and his/her abovementioned relatives should hold valid Iqamas. The bank should record the number of Iqama for each male or female expatriate as an electronic reference number for the expatriate.
|
| 7. | As for companies, the account will be operational when the company becomes legal.
|
| 8. | The following banking rules regarding checks shall be observed:
|
| | - | The name of the beneficiary must match the name shown on his/her ID.
|
| | - | Provisions of the Commercial Papers Law, including those related to payment term, shall be complied with.
|
| | - | Crossing out, erasure, or using chemical materials on the check is not permitted.
|
| | - | When amendment to a check is needed, the part that needs to be amended shall be crossed out, correction shall be written, and the signature of the drawer shall be placed next to the corrected mistake.
|
