Regulatory Alerts2024-11-09
Update of Rule No. (300-1-3-6) of the Account Opening Rules
The Saudi Central Bank issued this circular to update Rule No. (300-1-3-6) of the Account Opening Rules, amending requirements for opening and managing guarantee accounts for off-plan property sales or leasing projects while introducing a new framework for real estate joint venture guarantee accounts. The amendment standardizes account naming, mandates written undertakings from developers regarding fund disbursement and agreement amendments, and restricts withdrawals to checks or transfers via secure technological means. Furthermore, it establishes distinct operational controls for reserve and revenue accounts, mandates regulatory licensing prior to activation, and prohibits liens or the issuance of ATM/credit cards against these designated guarantee accounts.