Update of Rule No. 300-1-5-1 to the Account Opening Rules

[Saudi Central Bank Logo] Saudi Central Bank Document No.: 46032385 Date: 1446/05/29 AH Attachments: 5

Circular

To the Respected Banks,

Peace be upon you,

Subject: Update of Rule No. (300-1-5-1) to the Account Opening Rules.

Reference is made to Rule (300-1-5-1) included in the Account Opening Rules, communicated via SAMA Circular No. (65681/67) dated 1440/11/01 AH, which outlines the requirements for opening and managing bank accounts for Hajj, Umrah, and Visiting the Prophet’s Mosque (Ziyarat).

Accordingly, please be informed that the aforementioned Rule has been amended to align with the attached version. The update includes the following:

• Requirements for opening and managing accounts of Hajj Affairs Offices.
• Requirements for opening and managing accounts of tourism companies and agencies organizing pilgrim arrivals from outside the Kingdom.

For information and action, effective as of this date. Yours faithfully,

[Signature] Yazid bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 463 3000

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Update of Rule No. (300-1-5-1) regarding requirements for opening and managing bank accounts for Hajj, Umrah, and Visiting the Prophet’s Mosque.

300-1-5-1: Hajj, Umrah, and Visiting the Prophet’s Mosque:

• Hajj Affairs Offices: A. Account Opening Requirements:
  1. Accounts must be opened exclusively in Saudi Riyals (SAR).
  2. Submission of a letter from the Saudi Ministry of Hajj and Umrah permitting the opening of a bank account for a Hajj Affairs Office, containing the following office details: * Official name of the Hajj Affairs Office. * Names of authorized signatories (joint signature), who must be members of the Hajj Affairs Office or officials from the embassies of the countries represented by the office. * Position of each authorized signatory, along with their passport details. * The account’s purpose must be strictly limited to Hajj-related activities. * Specification of the office’s account number in its home country or a designated country by the Ministry, and the name of the remittance-sending bank with which the office operates in its home or designated country.
  3. The bank must obtain an account opening agreement signed by the authorized signatories specified in the Ministry’s letter to the bank.
  4. The authorized signatories must specify the approximate total amount in SAR that the office will transfer for Hajj purposes.
  5. After fulfilling the above conditions, the bank must escalate a request to its Compliance Department, accompanied by all supporting documents and records, to obtain SAMA’s approval for opening the account.
  6. These accounts at the bank are subject to dual control/oversight.
  7. The bank must provide the Hajj Affairs Office and the Ministry of Hajj and Umrah with the office’s IBAN.
  8. If account opening requirements are not met, the branch management must inform the applicant of the necessary requirements, document the process in a dedicated branch file, and notify the bank’s head office Compliance Department (General Management) on the same day regarding the action taken.
  9. If account opening requirements are met, they must be presented to the head office Compliance Department on the same day, and the Compliance Department must submit them to SAMA on the same day or by the start of business the following day at the latest.
  10. The office is permitted to open more than one account, provided they are within a single bank (with the purpose of each account clarified), and is not allowed to open accounts in other banks. If the office requests transferring its accounts from one bank to another, it must provide convincing justifications and substantive reasons unrelated to the application of requirements, Ministry approval, and SAMA approval.

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B. Operational and Management Requirements: 1. The account is operated based on a new approval letter from the Ministry of Hajj and Umrah to the bank, specifying an operational period starting from the beginning of Rabi' al-Awwal and ending at the end of Muharram of the following year. This is accompanied by the Ministry’s standing approval submitted by the Hajj Affairs Office, listing natural persons, companies, and institutions with which the office will conduct transactions for petty expenses, certified by the Ministry. 2. Deposits into the Hajj Affairs Office’s account are made via bank transfers from the office’s bank in its home country, or designated countries by the Ministry, with the transfer purpose strictly limited to Hajj expenses. 3. Deposits are permitted via collection checks drawn on a bank in the office’s home country only, in the name of the office. 4. Receipts of transfers, checks, or cash deposits from entities within the Kingdom are permitted only in the following cases: * From names listed in a list previously submitted by the Hajj Affairs Office to the Ministry of Hajj and Umrah (accompanied by the Ministry’s letter to the bank) for service providers to the Hajj services office, provided amounts are less than or equal to contracted amounts with each provider (as estimated by the Ministry). * From authorized signatories within a reasonable amount less than or equal to withdrawn petty expenses (as estimated by the Ministry). * Declared amounts (SAR/foreign currency) received at land, sea, and air ports are delivered to the bank branch at the port or the bank’s representative at the seasonal office in the port, accompanied by a document from the Zakat, Tax and Customs Authority (ZATCA) containing the Hajj Affairs Office name, its Saudi IBAN, the cash-carrying official’s name, and a copy of his passport. The bank employee issues a certified deposit/transfer receipt to the depositor. 5. Transfers from the office’s account to the Ministry of Hajj and Umrah’s electronic system regarding contracted services provided via the electronic system are permitted. Direct transfers from the office’s account in its home country (or designated countries) to the Ministry’s electronic system account for foreign pilgrims are also permitted regarding contracted services for Hajj affairs arrangements and any other purposes specified by the Ministry, in compliance with all requirements of this Rule. 6. The office is permitted to make payments via checks to authorized signatories for petty expenses (within amounts estimated by the Ministry). 7. The bank’s Compliance Department approval is required to allow operation of the office account. 8. Offices are not permitted to invest their account balances.

C. End-of-Hajj Season Handling: 1. Surplus amounts in the Hajj Affairs Office’s account are returned at the end of the Hajj season (end of Muharram) to a bank in the office’s home country or to a bank in one of the countries designated by the Ministry (if they were the source of these amounts), upon request from authorized office signatories, as specified in the account opening agreement.

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  2. If the office wishes to retain the balance in the same account for use in the following Hajj year, the account is frozen at the end of Muharram until the start of the following Hajj season, as determined by the Ministry regarding Hajj period definitions.
  3. In exceptional cases for operating accounts during the restriction period on Hajj offices’ accounts, the bank must obtain written approval from SAMA.

D. Reactivation and Operation in the Following Hajj Year: To operate the office’s account in the following Hajj year, the bank must obtain a letter from the Ministry of Hajj and Umrah containing the same information specified in the form completed by the Ministry when approving the account opening, specifically the names and details of authorized signatories, accompanied by the standing approval submitted by the Hajj Affairs Office to the Ministry listing entities contracted with the office in that Hajj year, which will only draw checks and make payments to them, certified by the Ministry.

• Tourism Companies and Agencies Organizing Pilgrim Arrivals from Outside the Kingdom: A. Account Opening Requirements:
  1. Accounts must be opened exclusively in Saudi Riyals (SAR).
  2. Submission of a letter from the Ministry of Hajj and Umrah permitting the opening of a bank account for a Hajj Affairs Office, containing the following office details: * Official name of the organizer (tourism company, agency, or approved association organizing pilgrim arrivals) in both Arabic and English. * The organizer’s Ministry of Hajj and Umrah system ID number. * Name(s) of the authorized signatory/signatories managing the account, who must be officials of the approved tourism company, agency, or association organizing pilgrim arrivals. Names must be in Arabic and English as per full passport names, along with their passport numbers. * The authorized signatory’s status must be "Hajj Organizer". * The account’s purpose must be strictly limited to Hajj-related activities. * Specification of the organizer’s account number in its home country or a designated country by the Ministry, and the name of the remittance-sending bank with which the organizer operates in its home or designated country.
  3. A certified copy of the commercial registration and/or license issued to the organizer in its home country, authenticated by the Saudi Embassy and/or Ministry of Foreign Affairs.
  4. Certified copies of passports of authorized signatories for account operation at the bank, subject to dual control/oversight.
  5. The bank must obtain an account opening agreement from the authorized signatories.
  6. The organizer must specify the approximate total amount in SAR that will be transferred for Hajj purposes.
  7. After fulfilling the above conditions, the bank must escalate a request to its Compliance Department, accompanied by all supporting documents and records, to obtain SAMA’s approval for opening the account.
  8. These accounts at the bank must be subject to dual control/oversight.

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  9. The organizer and the Ministry of Hajj and Umrah must be provided with the organizer’s account IBAN on a dedicated form.
  10. If account opening requirements are not met, branch management must inform the applicant of the necessary requirements, document the process in a dedicated branch file, and notify the bank’s head office Compliance Department (General Management) on the same day regarding the action taken.
  11. If account opening requirements are met, they must be presented to the head office Compliance Department on the same day, and the Compliance Department must submit them to SAMA on the same day or by the start of business the following day at the latest.
  12. The processing time for opening a fully compliant account must not exceed two business days at the latest.
  13. The organizer is permitted to open more than one account, provided they are within a single bank (with the purpose of each account clarified), and is not allowed to open accounts in other banks. If the organizer requests transferring its accounts from one bank to another, it must provide convincing justifications and substantive reasons unrelated to the application of requirements, Ministry approval, and SAMA approval.

B. Operational and Management Requirements: 1. The account is operated based on a new approval letter from the Ministry of Hajj and Umrah to the bank, specifying an operational period starting from the first day of Rabi' al-Awwal and ending on the last day of Muharram of the following year. This is accompanied by the Ministry’s standing approval submitted by the Hajj Affairs Office, listing natural persons, companies, and institutions with which the office will conduct transactions for petty expenses, certified by the Ministry. 2. Deposits into the organizer’s account are made via bank transfers from a bank in the organizer’s home country or designated countries by the Ministry, with the transfer purpose strictly limited to Hajj expenses. 3. Deposits are permitted via collection checks drawn on a bank in the organizer’s home country only, in the name of the organizer. 4. Receipts of transfers, checks, or cash deposits from entities within the Kingdom are permitted only in the following cases: * From names listed in a list previously submitted by the Hajj Affairs Office to the Ministry of Hajj and Umrah (accompanied by the Ministry’s letter to the bank) for service providers to the organizer, provided amounts are less than or equal to contracted amounts with each provider (as estimated by the Ministry). * From authorized signatories within a reasonable amount less than or equal to withdrawn petty expenses (as estimated by the Ministry). * Declared amounts (SAR/foreign currency) received at land, sea, and air ports are delivered to the bank branch at the port or the bank’s representative at the seasonal office in the port, accompanied by a document from ZATCA containing the organizer’s name, its Saudi IBAN, the cash-carrying official’s name, and a copy of his passport. The bank employee issues a certified deposit/transfer receipt to the depositor. 5. Transfers from the organizer’s account to the Ministry of Hajj and Umrah’s electronic system regarding contracted services provided via the electronic system are permitted. Direct transfers from the organizer’s account in its home country (or designated countries) to the Ministry’s electronic system account for foreign pilgrims are also permitted regarding contracted services for Hajj affairs arrangements and any other purposes specified by the Ministry, in compliance with all requirements of this Rule. 6. The office is permitted to make payments via checks to authorized signatories for petty expenses (within amounts estimated by the Ministry). 7. The bank’s Compliance Department approval is required to allow operation of the organizer’s account. 8. Organizers are not permitted to invest their account balances.

C. End-of-Hajj Season Handling: 1. Surplus amounts in the organizer’s Hajj affairs account are returned at the end of the Hajj season (end of Muharram) to a bank in the office’s home country or to a bank in one of the countries designated by the Ministry (if they were the source of these amounts), upon request from authorized signatories, as specified in the organizer’s account opening agreement. 2. If the organizer wishes to retain the balance in the same account for use in the following Hajj year, the account is frozen at the end of Muharram until the start of the following Hajj season, as determined by the Ministry regarding Hajj period definitions. 3. In exceptional cases for operating accounts during the restriction period on Hajj organizers’ accounts, the bank must obtain written approval from SAMA.

D. Reactivation and Operation in the Following Hajj Year: To operate the organizer’s account in the following Hajj year, the bank must obtain a letter from the Ministry of Hajj and Umrah containing the same information specified in the form completed by the Ministry when approving the account opening, specifically the names and details of authorized signatories, accompanied by the standing approval submitted by the Hajj Affairs Office to the Ministry listing entities contracted with the office in that Hajj year, which will only draw checks and make payments to them, certified by the Ministry.

• Saudi Institutions and Companies Organizing Umrah and Ziyarat Arrivals:
  • Institutions must fulfill the required documents per the requirements of Rule No. (300-1-5-1) above.
  • Companies must fulfill the required documents per the requirements of Rule No. (300-1-5-1) above.
  • All bank accounts of Saudi institutions and companies licensed for Umrah and Ziyarat activities must be segregated from other bank accounts of those institutions and companies, ensuring that all banking transactions related to Umrah activities are independent from other transactions these institutions and companies may conduct.

End of document.

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 463 3000