Regulatory Alerts2019-02-05
Exclusion of Expatriates Holding Prepaid Salary Cards from the Freezing of Funds for Employees of Distressed Companies
The Saudi Arabian Monetary Authority extends its existing fund-freezing exemption to expatriate workers holding prepaid salary cards employed by distressed companies, permitting banks to deposit salaries and activate these accounts. The six-month exemption period applies from the circular's date, covering both workers with expired residency permits and those operating under temporary passport-based residency. Banks are instructed to coordinate directly with the Banking Licensing Division specialist for implementation and inquiries regarding this directive.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Head Office
Banking Policies Department
No.: 34005 / 67 Date: 1440/05/30 Attachments: None
URGENT CIRCULAR
To: ................................................................................................. Respected,
With regards,
Subject: Exclusion of Expatriates Holding Prepaid Salary Cards from the Freezing of Funds for Employees of Distressed Companies.
In continuation of the Authority's Circular No. 25265/67 dated 1440/04/20 regarding the exclusion of expatriate employees' accounts from freezing for those working in certain distressed companies, and allowing banks to activate existing accounts and relationships for employees of such distressed companies whose residency permits have expired, as well as to open and activate accounts and relationships for those who have not yet been issued residency permits but work under temporary residency in their passports.
We wish to inform you that it has been decided to extend the exclusion mentioned in the aforementioned Authority Circular to include expatriates holding prepaid salary cards, such that their salaries and dues can be deposited, and exceptionally to allow the activation of these cards for employees of distressed companies. We also wish to emphasize that the exemption period previously decided for expatriates from freezing for employees of certain distressed companies is limited to six months only, effective as of the date hereof. For coordination or inquiries regarding this matter, please contact the specialist in the Banking Licensing Division, Mr. Waleed bin Ibrahim Al-Shajri (WShaajeri@sama.gov.sa).
For your information and necessary action. Yours sincerely,
Fahd bin Ibrahim Al-Shathri Acting Governor for Supervision
Distribution Scope:
- Banks operating in the Kingdom
P.O. Box 2992, Riyadh 11169, Telegram: Markazi, Telex: 404400, Tel: 4663000, Fax: 4662414