Regulatory Alerts2018-03-20
SAMA Circular on Linking Sadad Account with the Main Account
Saudi Arabian Monetary Authority (SAMA) requires banks to treat "Sadad Accounts" in alignment with their linked main current accounts regarding update status, inactivity rules, anti-money laundering requirements, and relationship disclosures. This directive eliminates the practice of independently freezing Sadad Accounts despite an active main account, thereby reducing operational burdens for both customers and financial institutions. Banks must implement these changes according to SAMA's action plan and notify their relevant internal departments accordingly.
In the name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Head Office
Banking Policy Department Number: .................................... Attachments: ....................................
Circular
Number: 391000075459 Date: 1439/07/03 Attachments: ....................................
His Excellency, Dear Sir,
After greetings,
Subject: Linking Sadad Account with the Main Account.
Referring to the "Sadad Account," one of the services provided via the Sadad Payments System, which aims to develop and improve the e-commerce environment in the Kingdom as a safe and convenient payment method for processing electronic payments, and noting that some banks treat it as an independent account from current accounts when applying update requirements in the banking account opening rules and general operating rules, where it is frozen despite the current account being updated, resulting in burdens for customers and banks.
Therefore, SAMA confirms that the "Sadad Account" shall be treated according to the status of the main current account when applying update requirements in the banking account opening rules and general operating rules, as well as the "Inactive Accounts and Relationships" requirements updated by Circular No. 371000120064 dated 1437/11/20, and the Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) rules, and the instructions on disclosing banking relationships and attachments.
For information, implementation, notifying relevant departments of its content, and sharing SAMA with the action plan to complete these changes.
Accept my regards,
Ahmed bin Abdullah Al-Sheikh Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom
- Supervision Department administrations
- Banking Operations Agency
P.O. Box 2992, Riyadh 11169 | Telegram: MARKAZI | Telex: 404400 | Phone: 4633000 | Fax: 4662414