Regulatory Alerts2009-03-24
Collecting Donations Through Mobile SMS Originating from Authorized Service Providers
The Saudi Arabian Monetary Authority (SAMA) issued this circular to regulate charitable donations collected via mobile SMS from non-service providers. It mandates that individuals or entities soliciting such funds without prior approval must comply with existing regulations, restricting collections to charitable institution offices or designated local bank accounts. Branches and staff are instructed to continuously monitor announced cases, verify account movements, and ensure ongoing compliance with the approved committee recommendations.
In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority (SAMA) Headquarters
Banking Control Department No.: 15674/MAT/279 Enclosures: "Circular"
Date: 27 Shawwal 1430 Corresponding to: 24/10/2009
To: The Esteemed, Greetings:
Subject / Collecting Donations via Mobile SMS (SMS) Originating from Non-Service Providers
The Authority has received the telegram from His Excellency the Minister of Finance No. 1/S/2055 dated 3/3/1430 AH, based on the telegram from His Royal Highness the Minister of Interior No. 13084/3/7/1 dated 27/2/1430 AH, which includes His Highness's approval of the recommendations of the committee formed to study the phenomenon of receiving text messages via mobile phones calling for collecting financial donations for charitable projects and requesting their deposit in bank accounts at local banks, as well as the spread of the phenomenon of some individuals announcing their account numbers for use in collecting donations without obtaining official approval from supervisory authorities, which includes His Highness's approval of the committee's recommendations.
We wish to clarify that Recommendation (First) concerning text messages not originating from service provider companies, but rather through certain individuals or entities using mobile or internet messaging technology, stipulates that what is stated in His Highness's telegram No. 157993/3/7/1 dated 25/10/1427 AH shall apply to those who do so, namely that calling for donations via mobile SMS and similar means without prior permission constitutes a violation of regulations and bylaws, and that collecting donations is restricted to the offices of charitable institutions and associations or through their bank accounts.
Therefore, we hope for due consideration and monitoring of any occurrences, working to identify announced cases through available publicized means or through account movements, and confirming with your branches and staff to pay continuous attention and observation.
Accept my regards, , ,
Director of the Banking Control Department Khaled bin Saleh Al-Subayel
Distribution Scope: • Banks operating in the Kingdom.
Duhman/Return 7382 P.O. Box 2992 Riyadh 1169, Central Telegram, Telex 404400, Telephone 4662440, Fax 4662865