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2001-03-02

Follow-up Circular on Instructions for Opening, Relocating, or Closing Bank Branches, Instant Remittance Centers, and ATMs

The Saudi Arabian Monetary Authority issues this follow-up circular to mandate strict compliance with security and licensing protocols for opening, relocating, or closing bank branches, instant remittance centers, and ATMs. Banks must obtain prior official approval for all new locations, apply security standards from the designated guide, and secure written consent before relocating any operational or non-operational facility. The directive further stipulates a nine-month license validity with six-month extensions for non-operational sites, requires submission of feasibility studies and site maps with applications, and mandates regular six-month progress reports and actual operational date notifications.

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2001/1

Saudi Arabian Monetary Authority Headquarters, Riyadh

General Directorate of Bank Supervision Date: 10 Dhu al-Qi'dah 1421 AH Corresponding Date: .................................... Attachments: .................................... Reference No.: 1792/MA/166

Follow-up Circular to All Banks Operating in the Kingdom

To Whom It May Concern, Greetings,

Subject: Instructions to Be Followed When Opening, Relocating, or Closing Bank Branches, Instant Remittance Centers, and ATMs, Whether Operational or Non-Operational.

In follow-up to the Authority's Circular No. MA/214 dated 25/4/1416 AH regarding the Authority's observations on many banks, as well as Circular No. 485/MA/36 dated 7/1/1416 AH attached with the Security Safety Guide, the Authority reiterates the mandatory compliance with all aforementioned instructions, which are as follows:

  1. Banks must apply the security safety requirements included in the aforementioned Guide to new branches, offices, or ATMs, and provide the Authority with a certificate from the security consultant confirming this.

  2. No bank is permitted to open new branches, other offices, or ATMs in any region of the Kingdom without first obtaining an official license from the Authority.

Saudi Arabian Monetary Authority Headquarters, Riyadh

General Directorate of Bank Supervision Date: .................................... Corresponding Date: .................................... Attachments: .................................... Reference No.: ....................................

  1. Upon obtaining the Authority's license to open a branch or install an ATM, relocation from one location to another is not permitted without obtaining written approval from the Authority, whether the branch is operational or non-operational, or whether the ATM is operational or non-operational.

  2. When the Authority approves opening a branch at any site, the installation of an ATM at that branch falls under the branch's license, and there is no need to obtain a separate license for the ATM, provided the bank notifies the Authority thereof.

  3. The license for a standalone ATM (outside branch premises) may not be merged with any branch, whether operational or non-operational.

  4. The license validity period is nine months from the date of approval issuance. The bank must follow up to complete the opening within this period; otherwise, the bank must inform the Authority of the reasons for the delay before the license expires.

  5. Licenses for non-operational branches are extended every six months to allow the bank time to prepare the site.

  6. The bank must provide the Authority at the end of every six months with a report detailing its status regarding branch openings or ATM installations.

Saudi Arabian Monetary Authority Headquarters, Riyadh

General Directorate of Bank Supervision Date: .................................... Corresponding Date: .................................... Attachments: .................................... Reference No.: ....................................

  1. When requesting approval to open a branch or install an ATM, each bank must attach the following data:
  • A feasibility study for opening a branch or installing an ATM.
  • A sketch map clearly indicating the location of the requested branch or the exact location of the ATM.
  1. The Authority must be notified of the actual opening date of the branch and its commencement of operations, or the date the ATM becomes operational.

Sincerely,

Assistant General Manager of Bank Supervision Mahmoud bin Abdulwahab Nantar

To the esteemed Mr. Abdul Karim Abu Al-Nasser, Head of Individuals Sector, For your information and necessary action according to your jurisdiction. With regards and appreciation, Directives Follow-up Department

  • Individuals Department - Saudi Khaled Bank
  • Banks Department - Khaled Bin Bank
  • Follow-up Department - Feisal Kurdi

Copy to the Bank - To the esteemed Mr. Taha Al-Qunaybi, Mr. Abdulaziz bin Saleh

Postal Address: Riyadh 11169, Kingdom of Saudi Arabia, Telex Central, Fax Central 204400, Telephone 4633000

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