Regulatory Alerts2017-05-18
Non-Resident FOREX Companies Conducting Banking Activities in the Kingdom without a License
The Saudi Central Bank (SAMA) issued this circular to prohibit non-resident FOREX companies and unlicensed individuals from conducting banking activities or marketing FOREX services in the Kingdom without proper licensing or contracts with local financial institutions. The directive mandates banks and money changers to strictly monitor account usage, halt and report suspicious remittances linked to unauthorized FOREX trading, and continuously update internal compliance lists and employee training. Financial institutions are further required to share countermeasure information through monthly joint committees and proactively warn customers about the risks and cancellation policies associated with unlicensed foreign exchange transactions.
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