Update the Model Forms of Current Bank Account Opening Agreements for Individuals and Legal Entities

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Saudi Central Bank Saudi Central Bank

Ref: 42048340 Date: 12/07/1442 AH Attachments: 23 pages

Circular

Dear Sirs, Peace, mercy, and blessings of God be upon you,

Subject: Update the model forms of the current bank account opening agreement for individuals and legal entities.

In continuation of the Saudi Central Bank instructions communicated via Circular No. (4204518) dated 16/04/1442 AH regarding the model forms of the current bank account opening agreement for individuals and legal entities.

We wish to inform you of the update to the agreement clauses by adding a new clause to the Terms and Conditions under the section (Rights and Obligations of Both Parties), for the purpose of activation and subscription to additional services provided in the Instant Payment System; account information will be automatically and strictly confidentially shared with Saudi Payments (the National System Operator) as needed, and the information to be shared is as follows:

• Customer name.
• Account number.
• Mobile phone number.
• National ID number, Commercial Registration number, or Unified Number.
• Email address.

The Saudi Central Bank also emphasizes the necessity of always relying on the copies of the forms published on its website; where they are updated and amended immediately. For your information and awareness, and to complete the necessary procedures to comply with the aforementioned in accordance with the timeframe specified in the aforementioned circular.

Accept my regards,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.

P.O. Box 2992, Riyadh 11119, Kingdom of Saudi Arabia. Tel: +966 11 463 2000

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Model Form for Current Bank Account Opening Agreement for Individuals

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First: Parties to the Agreement

1. First Party ( Bank/Financial Institution Name), Commercial Registration No.: (................), licensed under: (................), and subject to the supervision and oversight of the Saudi Central Bank.

2. Second Party

Personal Information¹
Full Name in Arabic:
Full Name in English:
Gender:	[ ] Male [ ] Female
Nationality:
Date of Birth:	..../..../.... AH ..../..../.... AD
Place of Birth:
Education Level:	[ ] Primary [ ] Intermediate [ ] Secondary [ ] University [ ] Other:

Personal ID Data
ID Type:	[ ] National ID [ ] Residence ID [ ] Passport [ ] Family Record [ ] Other:
ID Number:
Place of Issue:
Expiry Date:	..../..../.... AH ..../..../.... AD

National Address and Contact Information
National Address Data²:	Building No.	Street Name	District Name	City Name	Postal Code

Mobile Phone Number³:
Home Phone Number⁴:
Email Address⁵:

Home Country Information (for Non-Saudis)
Country	City	Street	Unit No.

Home Country Contact Number

¹ As recorded in the personal ID. ² As registered with the Saudi Post. ³ If available. ⁴ If available. ⁵ If available.

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Additional Contact Information
Full Name in Arabic:
Relationship/Type of Relationship:
Mobile Phone Number:
Home Phone Number:

Employment Information⁶
Employer Name:
Job Title:
Employer Sector:	[ ] Government [ ] Private [ ] Semi-Government [ ] Other:
Employment Start Date:	..../..../.... AH ..../..../.... AD

Financial Information
Primary Income Type:	[ ] Salary [ ] Self-Employed [ ] Allowance [ ] Bonus [ ] Other:
Monthly Amount:
Additional Income Type⁷:	[ ] Rentals [ ] Stock Investments [ ] Other:
Monthly Amount:
Expected Monthly Account Activity:	Deposit	Withdrawal

Miscellaneous Questions
Are you a Politically Exposed Person⁸?	[ ] Yes [ ] No
Do you have a first or second-degree⁹ relative who is a Politically Exposed Person?	[ ] Yes [ ] No
Are you the beneficial owner of the account?	[ ] Yes [ ] No
Are you a person with a disability? If (Yes), please specify the type of disability (hearing/vision/motor...).	[ ] Yes [ ] No
Do you wish to receive care regarding the products and services provided by the Bank?	[ ] Yes [ ] No

Account Information
Purpose of Account Opening:
Account Type:	[ ] Individual [ ] Joint¹¹
Base Account Currency¹²:

⁶ If available. ⁷ If available. ⁸ If available. ⁹ A person entrusted with senior public duties in the Kingdom or a foreign country, or senior administrative positions, or a position in one of the international organizations, including the following positions or jobs: a. Heads of state or government, senior politicians or government, judicial, or military officials, senior executive officials in state-owned companies, and prominent officials in political parties. b. Heads and directors of international organizations, their deputies, and board members, or any similar position. ¹⁰ First degree: Father, mother, grandfather, grandmother. Second degree: Children and their descendants. ¹¹ The agreement shall be filled out independently by each account partner, stored in a single file under one account number, and each agreement must be attached to a form specifying at minimum each partner's percentage in the account and the withdrawal mechanism. ¹² Standard currency options are determined according to bank availability.

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Second: General Terms and Conditions

1. Definitions and Clarifications

a. Definitions: The following words and expressions - wherever they appear in this agreement - carry the meanings indicated opposite each of them unless the context dictates otherwise: First Party: The Bank/Financial Institution whose details are stated in Clause (First) of this agreement. Second Party: The Bank/Financial Institution client whose details are stated in Clause (First) of this agreement, who signed on their own behalf or through an agent to this agreement, or account holders who are natural persons (individuals) who signed on their own behalf or through an agent to this agreement in the case of a joint account. Current Account: An accounting record opened by the Bank and established under this agreement upon the client's request, entailing rights and obligations for both parties, including accounting entries made by the Bank in accordance with regulations, rules, and banking practices.

b. Clarifications: In this agreement, unless the context dictates otherwise:

1. References to years, months, and days are according to the Hijri calendar.

2. Reference to the agreement refers to Clause (First), Clause (Second), Clause (Third), and appendices of the agreement, including any amendments or additions made to it.

3. Preamble Whereas the Second Party wishes to open a current account with the First Party, and whereas the First Party has approved the Second Party's request, the two parties, possessing full legal and regulatory capacity, have agreed to conclude this agreement. It is subject to the provisions of relevant regulations, laws, and instructions, such as the Anti-Money Laundering Law, the Anti-Terrorism Financing Law, and their executive regulations, and instructions issued by the Saudi Central Bank such as the Bank Accounts Rules. In case of conflict between the provisions of the agreement and the provisions of regulations and instructions; the provisions of regulations and instructions prevail.

The above preamble is an integral part of this agreement.

3. Rights and Obligations of Both Parties
4. The First Party is obligated to open a current account for the Second Party and exercise due care in executing its orders on the account within the limits of regulations, rules, and banking practices. The First Party shall not be liable for any damage arising from the execution of these orders unless such damage results from its gross negligence, willful misconduct, or failure to exercise due care, which for the purposes of applying this agreement means: attention, skill, judgment, and diligence according to the circumstances reasonably expected to be performed by any similar institution.

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2. The First Party is entitled to benefit from the amounts deposited in the current account for its own benefit, with its full obligation to make these amounts available to the Second Party upon request. The Second Party shall not be entitled to claim any profits therefrom, provided that both parties may enter into a separate agreement to arrange the relationship under which the Second Party may obtain profits on such amounts.
3. The Second Party is prohibited from using the account for any illegal purpose or activity, and must inform the First Party upon any objection or suspicion regarding transactions conducted on its account. The passage of (thirty) days from the date of execution of any transaction without the Second Party's objection shall constitute consent and confirmation of its integrity.
4. The First Party is entitled to collect a specified fee from the Second Party for the services provided, and may collect it directly without referring to the Second Party, provided that such fees do not conflict with what is issued by the Saudi Central Bank, and that they are published at the First Party's branches and website before (30) days prior to the application of the fees.
5. The Second Party shall bear any expenses or taxes imposed by the State regarding any of the services or products provided by the First Party to the Second Party, whether currently imposed or to be imposed in the future.
6. The First Party shall notify the Second Party via SMS to the mobile phone number recorded in the agreement - or any other agreed means - of the following: a. All transactions executed on the current account immediately upon occurrence. b. Prior to a change in the account status for a sufficient period.
7. The Second Party is obligated to update its personal ID and information recorded in the agreement upon any update or change. The First Party may, in case of breach and for the purpose of complying with applicable regulations, freeze the current account.
8. The Second Party agrees that the First Party, for the purpose of opening and operating the current account and complying with applicable regulations, may obtain its personal ID data and updated information through services provided by the National Information Center or any other reliable and independent entities.
9. The First Party may, in case of the Second Party's breach of this agreement, take measures it deems appropriate within the limits of regulations, rules, and banking practices.
10. The Second Party may close the current account and obtain the entire credit balance at any time by submitting a request to the First Party accompanied by debit cards, checks, and any other items arising from the account. The First Party may refuse the account closure request if it is linked to any financial obligations such as issuing guarantee letters, opening letters of credit, discounting commercial papers, and other similar obligations requiring the account to remain open.
11. The First Party may close the current account if no financial amounts are deposited in it for (ninety) days from the account opening date, or if the Second Party deposits a specific amount and then withdraws it to leave the account balance at (zero) for (four) years, provided that the Second Party is notified via SMS to the mobile phone number recorded in the agreement - or any other agreed means - for a sufficient period before account closure.
12. The First Party may send SMS messages, communicate by phone, or send marketing brochures to the Second Party regarding the services and products provided by the First Party; unless the Second Party expresses no desire to receive such messages and marketing brochures in accordance with Clause (First) of the agreement.

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13. The Second Party may view its account statement through electronic banking services, and may also request that a statement be sent to its email address or national address mentioned in the agreement, or to any other address specified.
14. The First Party shall, upon learning of the Second Party's death, loss of legal capacity, or the opening of any liquidation or administrative liquidation proceedings, suspend dealings with the account until heirs are determined by a Sharia-compliant deed, or a legal guardian/trustee or liquidator (trustee or bankruptcy committee) authorized to manage the account is appointed by the competent court.
15. All of the Second Party's accounts with the First Party shall be considered as one account, and the First Party may, at any time and without referring to the Second Party, offset them against each other and deduct therefrom to offset any due obligations owed to it.
16. The party that fails or neglects to notify the other party of a change in its contact address or one of them within (seven) days; cannot claim ignorance of the notification or its non-receipt.
17. The Second Party is prohibited from making any transfers outside the Kingdom of Saudi Arabia to any non-profit organizations, and the First Party shall have the right to refuse to execute these transfers¹³.
18. The First Party shall not bear any liability towards the Second Party for delaying or failing to deliver a bank transfer to the beneficiary due to an error or technical failure beyond the First Party's control, or in case of incomplete beneficiary information, absence of the beneficiary, or for any other reason beyond the First Party's control, unless the delay or failure to deliver the bank transfer results from the First Party's failure to exercise due care or its gross negligence.
19. The exchange rate approved by the First Party for foreign currency exchange shall apply to all foreign currency deposits and withdrawals.
20. Regarding joint accounts, the available credit balance in the account belongs to both parties as partners according to the percentages specified for each in the agreement. Partners shall also bear the debit balance arising in the account for any reason. The First Party is entitled to stop the account in case of the death or loss of capacity of one of the partners, or the opening of any liquidation or administrative liquidation proceedings against any of them, or upon receiving a notice from one of the partners regarding a dispute between them.
21. The invalidity of any clause of the agreement, or its non-compliance, or its unenforceability shall not invalidate the remaining clauses of the agreement, provided that both parties are obligated to amend the clause to comply with relevant regulations and controls.
22. The First Party may amend the agreement from time to time without prejudice to the Saudi Central Bank's instructions, provided that the First Party is obligated to notify the Second Party of the amendments before (thirty) days from their effective date. The amendments shall apply after the expiration of the period mentioned in this paragraph from the date of their publication on the First Party's website. Failure to withdraw from the agreement shall constitute consent and acceptance by the Second Party of the amendments.
23. The agreement shall remain in effect until the date of account closure by either party.
24. The First Party must maintain the confidentiality of all data and account information provided by the Second Party, except what the First Party discloses for specific professional and operational purposes - after obtaining the Second Party's consent - and to competent government authorities in accordance with relevant regulations and controls.

¹³ The Honorable Royal Order No. (55871) dated 09/05/1436 AH stipulates that the King Salman Center for Humanitarian Relief and International Aid is the sole entity authorized to receive any charitable, humanitarian, or relief donations, whether governmental or non-governmental, to deliver them to those in need outside the Kingdom of Saudi Arabia.

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25. The First Party shall retain all documents related to the Second Party's account for a minimum of (ten) years from the date of agreement expiration.

26. For the purpose of activation and subscription to additional services provided in the Instant Payment System; account information will be automatically and strictly confidentially shared with Saudi Payments (the National System Operator) as needed, and the information to be shared is as follows: a. Customer name. b. Account number. c. Mobile phone number. d. ID number. e. Email address.

27. This agreement is subject to the laws of the Kingdom of Saudi Arabia. Any dispute arising between the parties shall be settled amicably, and if amicable settlement fails, any party shall have the right to refer it to the competent judicial authority.

28. This agreement was prepared in Arabic and English, and in case of any discrepancy between the texts, the Arabic text shall prevail as the original.

29. Services and Products Provided with the Current Account The First Party provides the Second Party with a number of services and products related to the current account, some of which are detailed below, and their provision is subject to the attached terms and conditions in this agreement¹⁴, and shall be an integral part of it. [ ] ATM Card [ ] Phone Banking [ ] Electronic Banking [ ] Checkbook

30. Commitments and Declarations of the First Party The First Party commits and declares to the Second Party as follows:

31. To deal with fairness and equity, and to comply with the principle of disclosure and transparency.

32. To protect information privacy and not to use it except for specific professional and operational purposes - after obtaining the Second Party's consent - except what the First Party discloses to competent government authorities in accordance with relevant regulations and controls.

33. To take all necessary technical and organizational measures to protect its technical information systems and customer data in its operations and those of its branches and affiliated companies, and that it has exercised due care and made reasonable efforts in establishing, maintaining, implementing, and following IT and information security and cybersecurity and data protection controls, policies, and procedures, including supervision and access control to systems, encryption, virtual and actual protection, and that it has necessary business continuity plans, recovery plans, and security plans designed to protect against any breach, destruction, loss, disruption, modification, or exploitation.

¹⁴ The Bank attaches the specific terms and conditions for each product or service within the agreement.

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6. Commitments and Declarations of the Second Party The Second Party, possessing full legal and regulatory capacity, commits and declares as follows:
7. That it is not legally prohibited from dealing with it, and that all data provided is accurate, reliable, and up-to-date.
8. That it is responsible before competent authorities for funds deposited in its account with its knowledge, and those deposited without its knowledge, whether it acted upon them personally or not, in case of failure to officially report them upon learning of their presence in its account.
9. That funds deposited in the account result from lawful activities and that it is responsible for their integrity. If the First Party receives any illegal or counterfeit funds from it, it shall not be entitled to recover them or claim compensation for them.
10. That the First Party has the right to freeze the account or any amounts credited therein upon suspicion that the amounts result from financial fraud in accordance with applicable regulations.
11. That it is the beneficial owner of the account.
12. That it is fully aware that transfers to unknown persons or entities are prohibited according to applicable regulations and instructions, and that all transfers it makes are to known persons and entities for known, lawful, and personal purposes.
13. That it has read and understood the terms and conditions stated in this agreement, and that it will read the terms and conditions specific to the services and products related to the current account, published on the First Party's website.
14. Tax Declaration¹⁵:

¹⁵ The Bank will add the tax declaration form approved by the Tax Compliance System to foreign accounts owned by US residents abroad "FATCA", and the Common Reporting Standard (CRS) agreement.

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Third: Copy of Personal ID and Signature Samples

ID Copy

ID Number

I, the Second Party (Full Name): ........................................................, agree to the copying of the identity document for official use by the First Party. I also acknowledge the accuracy of the information and data I provided, and I bear any liability that may arise from my failure to disclose any data required by the agreement to be disclosed, or its inaccuracy. I have read, understood, and accepted the terms and conditions of this agreement and its provisions consisting of "Number of Pages", and I agree to abide by what is stated therein. To this end, the signature below is affixed.

Signature of the Second Party

Please sign above Please sign above (for signature matching purpose)

Filled by representative of the First Party

Representative Name Signature

[ ] True Copy of ID [ ] Signature Matches

Date

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Agreement Appendices

1. Guardian/Guardian/Agent/Caretaker Information - as applicable

Relationship Type with Second Party
[ ] Father [ ] Mother [ ] Agent [ ] Other:

Personal Information¹⁶
Full Name in Arabic:
Full Name in English:
Gender:	[ ] Male [ ] Female
Nationality:
Date of Birth:	..../..../.... AH ..../..../.... AD
Place of Birth:
Education Level:	[ ] Primary [ ] Intermediate [ ] Secondary [ ] University [ ] Other:

Personal ID Data
ID Type:	[ ] National ID [ ] Residence ID
ID Number:
Place of Issue:
Expiry Date:	..../..../.... AH ..../..../.... AD

Contact Information
National Address Data¹⁸:	Building No.	Street Name	District Name	City Name	Postal Code

Mobile Phone Number¹⁹:
Home Phone Number²⁰:
Email Address²¹:

Employment Information²²
Employer Name:
Job Title:
Employer Sector:	[ ] Government [ ] Private [ ] Semi-Government [ ] Other:

Miscellaneous Questions
Are you a person with a disability? If (Yes), please specify the type of disability (hearing/vision/motor...).	[ ] Yes [ ] No

¹⁶ When the agreement is concluded on behalf of the Second Party by the agent or guardian/trustee/caretaker and those equivalent to them under official documents authorizing them to do so. ¹⁷ As recorded in the personal ID. ¹⁸ As registered with the Saudi Post. ¹⁹ If available. ²⁰ If available. ²¹ If available.

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2. Copy of Personal ID²³

²³ According to the customer's personal ID copy form.

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Model Form for Current Bank Account Opening Agreement for Legal Entities

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First: Parties to the Agreement

1. First Party ( Bank/Financial Institution Name), Commercial Registration No.: (................), licensed under: (................), and subject to the supervision and oversight of the Saudi Central Bank.

2. Second Party

Entity Information¹
Name in Arabic:
Name in English:
Nationality:	[ ] Saudi [ ] GCC [ ] Other:
Entity Type:	[ ] Company [ ] Sole Establishment [ ] Government Entity [ ] Other:
Entity Sector:	[ ] Commercial [ ] Contracting [ ] Government [ ] Other:
Brief Description of Entity Activity:
Number of Branches within the Kingdom:
Number of Employees:	[ ] 1 to 5 [ ] 6 to 49 [ ] 50 to 249 [ ] More than 250
Legal Entity Identifier²:
Tax Number³:

Proof Document Information
Proof Document Type:	[ ] Commercial Registration (Main/Branch) [ ] License (Specify): [ ] Other:
Proof Document Number:
Place of Issue:
Issue Date:	..../..../.... AH ..../..../.... AD
Expiry Date:	..../..../.... AH ..../..../.... AD

| National Address Data⁴: | Building No. | Street Name | District Name | City Name | Postal Code | Additional No. | | :--- | :--- | :--- | :--- | :--- | :--- | | | | | | | | |

Phone Number:
Email Address⁵:

¹ As recorded in the proof document. ² If available. ³ If available. ⁴ As registered with the Saudi Post. ⁵ If available.

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Website⁶:

Additional Contact Information
General Manager or Equivalent	Name	Mobile No.
CFO or Equivalent	Name	Mobile No.

Financial Information
Annual Revenue:	[ ] 3 to 3 million SAR	[ ] More than 3 to 40 million SAR	[ ] More than 40 to 200 million SAR	[ ] More than 200 million SAR
Expected Monthly Account Activity:	Internal Transfers	External Transfers	Cash Deposits	Other Deposits

Account Information
Purpose of Account Opening:	[ ] Check Collection	[ ] Payment of Obligations & Expenses	[ ] Deposits
Base Account Currency⁷:

Ownership Information⁸
Name	Ownership %	Nationality	ID/Proof No.
1.
2.
3.

Board of Directors Information
Name	Nationality	ID/Proof No.
1.
2.
3.

Ultimate Beneficial Owner Information⁹
Name	Ownership %	Nationality	ID/Proof No.
1.
2.
3.

Miscellaneous Questions
Is any member of the Board of Directors/Partners/Owners/Authorized Signatories or any of their first or second-degree relatives¹⁰ a Politically Exposed Person¹¹?	[ ] Yes [ ] No

⁶ If available. ⁷ Standard options are determined according to bank availability. ⁸ Ownership, board of directors, and ultimate beneficial owner information are collected according to the entity type. ⁹ The natural person who ultimately owns or exercises actual direct or indirect control over the client or the natural person on whose behalf the transaction is conducted. ¹⁰ First degree: Father, mother, grandfather, grandmother. Second degree: Children and their descendants. ¹¹ A person entrusted with senior public duties in the Kingdom or a foreign country, or senior administrative positions, or a position in one of the international organizations, including the following positions or jobs: a. Heads of state or government, senior politicians or government, judicial, or military officials, senior executive officials in state-owned companies, and prominent officials in political parties. b. Heads and directors of international organizations, their deputies, and board members, or any similar position.

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Second: General Terms and Conditions

1. Definitions and Clarifications

a. Definitions: The following words and expressions - wherever they appear in this agreement - carry the meanings indicated opposite each of them unless the context dictates otherwise: First Party: The Bank/Financial Institution whose details are stated in Clause (First) of this agreement. Second Party: The Bank/Financial Institution client whose details are stated in Clause (First) of this agreement, who signed on their own behalf or through an agent or by partners'/board decision to this agreement. Includes the