Regulatory Alerts2015-01-01
Guide to Regulating Procedures for Operating Exchange Offices in the Kingdom of Saudi Arabia
The Saudi Arabian Monetary Agency (SAMA) issued this guide to regulate procedures for operating exchange offices in the Kingdom of Saudi Arabia, mandating strict customer acceptance policies, Know Your Customer (KYC) principles, and Customer Due Diligence (CDD) procedures for all natural and legal clients. It establishes detailed operational requirements for currency exchange, money transfers, and correspondent banking, including tiered transaction limits, mandatory record-keeping, and enhanced scrutiny for high-risk or politically exposed persons. The document further mandates comprehensive anti-money laundering and terrorist financing controls, requiring prompt reporting to the Financial Intelligence Unit, continuous transaction monitoring, and strict adherence to international sanctions lists and banking secrecy obligations.