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.
Saudi Central Bank
Circular
| Number: | 42068294 |
| Date: | 1442/09/24 |
| Attachments: | None |
To the Esteemed, Peace, mercy, and blessings of God be upon you.
Subject: Enabling Mothers to Open Sub-Bank Accounts Linked to Their Main Account for Their Minor Children.
In line with the Saudi Central Bank's commitment to ensuring that banks and financial institutions provide diverse banking services meeting all customer needs, and with the aim of empowering mothers to manage their children's affairs, the Saudi Central Bank confirms the availability of opening sub-accounts under the mother's main account, with such accounts named in and for the benefit of the minor.
For information and implementation effective from its date.
Yours sincerely,
Fahd bin Ibrahim Al-Shathry Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.