Amendment of Rule No. (300-1-3-8) of the Account Opening Rules

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Saudi Central Bank

Circular

Ref. No.: 46024651 Date: 1446/04/19 Attachments: 1 Sheet

To: Respected Institutions,

Subject: Amendment of Rule No. (300-1-3-8) of the Account Opening Rules.

I refer to Rule No. (300-1-3-8) regarding the collective accounts for managing financing value in debt-based crowdfunding establishments, included within the Account Opening Rules, communicated via SAMA Circular No. (6581/67) dated 1440/11/01 AH. I also refer to SAMA Circular No. (46023501) dated 1446/04/14 AH, which communicated the Governor's Decision No. (162/M.Sh.T) dated 1446/03/27 AH approving the amendment to the rules governing debt-based crowdfunding activities.

And since the amendment to the debt-based crowdfunding activity rules includes amendments to certain terms used therein, including those used in naming the collective account for managing financing value in debt-based crowdfunding establishments.

Accordingly, you are informed that the following has been decided:

First: Amendment of the aforementioned rule to align with the attached format, by replacing the term "debt-based crowdfunding establishment" with "debt-based crowdfunding company", and also replacing the term "financing value" with "financing amount" wherever it appears in the rule.

Second: Amendment of the term and definition of "financing value" and "debt-based crowdfunding establishment" included in Chapter (One) regarding Definitions, to be as follows:

• Financing Amount: The funds collected by participants and granted to the benefiting establishment through a debt-based crowdfunding platform.
• Debt-based Crowdfunding Company: A joint-stock company licensed to conduct debt-based crowdfunding activities.

For your information and implementation effective from its date.

Yours sincerely,

[Signature]

Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.

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Saudi Central Bank

Rule No. (300-1-3-8) of the Account Opening Rules, as amended to align with the amendment to the debt-based crowdfunding activity rules communicated to debt-based crowdfunding companies via SAMA Circular No. (46023501) dated 1446/04/14 AH.

300-1-3-8 / Collective Accounts for Managing Financing Amount in Debt-based Crowdfunding Companies: Collective accounts are opened and managed for the purpose of collecting funds from participants to grant credit to benefiting establishments, subject to the following requirements:

1. A letter from the Chairman of the Board of Directors of the debt-based crowdfunding company, or his authorized representative, addressed to the bank, specifying the purpose of opening the collective account as "Managing Financing Amount (Name of Debt-based Crowdfunding Company)" and identifying those authorized to manage it.
2. A copy of all founding documents of the debt-based crowdfunding company, including the Memorandum of Association, Articles of Association, and Board formation decision.
3. A copy of the IDs of those authorized to manage the account.
4. The account name shall be "Financing Amount Management Account - Name of Debt-based Crowdfunding Company".
5. The account shall be separate and independent from the company's operational accounts, including fees and commissions received by the company, and shall not be linked to any financial obligations or claims of the company.
6. Transfers of funds from the collective account to any other account are not permitted without approval from participants, except after providing evidence confirming no objection by the Central Bank.
7. Cash deposits/withdrawals from the account are not permitted.

End.