Regulatory Alerts2021-05-06
Enabling Mothers to Open Sub-Bank Accounts Linked to Their Main Account for Their Minor Children
The Saudi Central Bank mandates that all banks and financial institutions operating in the Kingdom enable mothers to open sub-accounts under their primary accounts, explicitly naming and allocating these accounts for the benefit of their minor children. The circular requires immediate implementation by financial institutions, ensuring that sub-accounts are structured to facilitate maternal management of minors' affairs while maintaining clear ownership and benefit designation. Banks must align their operational procedures with these requirements effective from the circular's issuance date, as outlined in distribution to all domestic financial entities.
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