Regulatory Alerts2024-12-31
Amendment of the Two Rules Related to Private Associations and Foundations
The Saudi Central Bank has amended Rules 300-1-5-2 and 300-1-5-3 governing bank accounts for private associations and foundations to replace references to the Ministry of Human Resources and Social Development with the National Non-Profit Sector Development Center ("the Center"). The amendments remove the requirement for bank compliance director approval and supervisory authority consent for cross-border transactions, unify sub-account management to operate independently of the main account, and simplify authorized signatory requirements to joint signatures with Center oversight. Furthermore, the rules now mandate Center approval for accepting donations and zakat from non-founders, streamlining regulatory compliance while enhancing operational flexibility.