Regulatory Alerts2019-01-17
Customer Signature on Bank Account Agreements
The Saudi Central Bank mandates that banks and financial institutions accept a single customer signature on the final page of bank account opening agreements, replacing the previous requirement to sign every page. This streamlined process remains valid provided each agreement displays a clear reference number on all pages, states the total page count on the signed page, is retained and published online by the institution, and includes a concluding statement confirming customer review and approval. Institutions must implement these controls within forty working days of the circular's issuance date.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Head Office
Banking Policy Department
Ref. No.: 29811/67 Date: 1440/05/11 Attachments: None
Circular
To the Esteemed, Peace, mercy and blessings of Allah be upon you,
Subject: Customer Signature on Bank Account Agreements.
In continuation of the Bank's instructions issued pursuant to Circular No. 39100002013 dated 1439/02/20 AH, which stipulate that the customer must sign all pages of contracts and agreements to which they are a party, to ensure their awareness of all agreement terms.
To facilitate bank account opening procedures, it has been decided to accept a single customer signature on the last page of the bank account opening agreement, instead of signing every page, subject to the following controls:
First: Each agreement must have a reference number (issue number) clearly and prominently written on every page, including the last page signed by the customer. Second: The total number of agreement pages must be clearly and prominently written on the page signed by the customer. Third: The bank/financial institution must retain all forms of bank account opening agreements across various editions and updates, and publish them via the bank's website to enable customers to view and read them. Fourth: The last page signed by the customer must include a statement confirming that the customer has reviewed all terms of the agreement and agrees to them.
For information and action within (40) working days from the date hereof.
Yours sincerely,
Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992, Riyadh 11169 | Telex: MARKAZI | Fax: 404400 | Tel: 4633000 | Fax: 4662414