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2018-05-01

Updating Some Work Procedures of Money Changers

The Saudi Central Bank issued a circular mandating immediate compliance with updated operational procedures for all money exchange institutions and companies within four months. The directive requires firms to retain CCTV footage for at least one year, maintain customer transaction records electronically for ten years, register residential or national addresses upon onboarding, and permanently preserve transaction and membership data in automated systems. Additionally, institutions must establish and periodically test business continuity and disaster recovery plans to ensure uninterrupted, efficient operations.

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Saudi Central Bank

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

Saudi Central Bank Headquarters

Office of the Deputy Governor for Supervision

Reference No.: .................................... Attachments: ....................................

Reference No.: 391000088263 Date: 1439/08/15 Attachments: ....................................

Circular

To: [Institution/Company Name] .................................... Peace, mercy, and blessings of God be upon you,

Subject: Updating Some Work Procedures of Money Changers

Pursuant to Clause (c) of Article Fifteen of the Regulations Governing the Practice of Money Exchange Business, issued by Ministerial Decision No. 1357 dated 1432/05/01 AH, which grants the Saudi Central Bank the authority to issue any instructions it deems necessary to implement supervisory and regulatory requirements for money exchange activities.

In the context of the Bank's continuous efforts to develop the money exchange sector in the Kingdom and update certain procedures related to the operations of money exchange institutions and companies, the Bank wishes to emphasize full compliance with the provisions of the Regulations Governing the Practice of Money Exchange Business and related systems and instructions, in addition to adhering to the following:

  1. Retain CCTV surveillance recordings for a minimum period of one year (12 months).
  2. Enable customers (members) to obtain a statement detailing executed transactions upon request, after verifying the availability of the necessary regulatory documents and records.
  3. Retain all documents and records related to customer transactions (whether original or copies) in a secure location for a minimum of ten years from the date of transaction execution, with electronic archiving to facilitate easy retrieval when needed.
  4. Register the residential address or national address at the establishment of the business relationship.
  5. Deleting any transaction or membership is prohibited, ensuring that all details remain accessible through the automated system.

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

Saudi Central Bank Headquarters

Office of the Deputy Governor for Supervision

Reference No.: .................................... Date: .................................... Attachments: .................................... Corresponding Date: ....................................

  1. Develop business continuity plans and ensure the readiness of backup sites (Disaster Recovery), with periodic effectiveness assessments and verification of the plan's executability without encountering difficulties, to enable the money exchange institution/company to continue operations efficiently and effectively.

The Bank emphasizes that money exchange companies and institutions must immediately take necessary measures to ensure full compliance with this Circular within four months. The Bank will take all regulatory actions against non-compliant money exchange companies and institutions that fail to meet the requirements outlined herein.

Yours sincerely,,,

Ahmed bin Abdullah Al Sheikh Deputy Governor for Supervision

Distribution Scope:

  • All money exchange institutions and companies
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