LogoRegulatory Alerts
2017-06-14

Cash Deposit for Class A Exchange Companies at SAMA Branches Directly

The Saudi Arabian Monetary Authority (SAMA) requires banks operating in the Kingdom to execute agreements with Class A exchange companies that authorize these firms to deposit cash directly at SAMA branches on the banks' behalf. These agreements must specify authorized representatives, mandate compliance with SAMA's cash deposit policy and money transport regulations, and establish clear liability for overages, shortages, or counterfeit currency. Furthermore, the directive mandates the issuance of bank-stamped identification cards for exchange companies and enforces precautionary import procedures to ensure fund integrity and valid foreign licenses.

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In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Arabian Monetary Authority
Head Office

Banking Policy Department

Ref. No.: 381000098932
Date: 1438/09/20
Attachments:

Circular

To: The Respected / Excellency,

Greetings,

Subject: Cash Deposit for Class A Exchange Companies at SAMA Branches Directly.

With reference to the Authority's approval of the cash deposit procedures for Class A Exchange Companies directly at SAMA branches,

it is required for banks operating in the Kingdom to sign an agreement with Class A Exchange Companies outlining the procedures for these companies to deposit cash amounts directly at SAMA branches. The agreement's content, along with the conditions and procedures to be complied with by banks and Class A Exchange Companies, shall primarily include the following:

  1. The agreement must include authorization empowering the exchange company to perform the deposit process on behalf of the bank.

  2. The bank's authorization of exchange company representatives to perform deposits on its behalf, specifying their names and details; and that exchange companies comply with regulatory procedures to fulfill deposit requirements in accordance with the cash deposit policy applied by the Authority, and adhere to the Law Governing Money and Precious Metals Transport and its approved Executive Regulations.

  3. Exchange companies' compliance with precautionary procedures for Riyal imports regarding the integrity of funds, reliability of foreign exchange companies dealt with, and verification of their valid licenses.

  4. Exchange companies' compliance with the Authority's cash counting and sorting deductions, along with resulting responsibilities for overages/shortages or counterfeit currency; the bank shall be liable to the Authority for such cases and will subsequently deduct amounts from the exchange company.

  5. Adoption of the procedure for issuing identification cards specific to exchange companies on the branch's supplied connections, stamped with the bank's name, as supporting documentation to verify overages/shortages or counterfeit currency.

Yours sincerely,

Ahmed bin Abdullah Al-Sheikh
Deputy Governor for Supervision

Distribution List:

  • Banks operating in the Kingdom.
  • Class A Exchange Companies.
  • SAMA Branches.

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Tel: 404400, Phone: 463300, Fax: 4667414

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