Amendment of Rule 300.1.5.3 of the Account Opening Rules

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[Logo: Saudi Central Bank]

Number: 43074912
Date: 1443/08/26
Attachments: 1 page

Circular

Dear Sirs,

Peace, mercy, and blessings of God be upon you,

Subject: Amendment of Rule No. (300-1-5-3) of the Bank Account Rules.

I refer to Rule No. (300-1-5-3) concerning Family Offices, included in the Bank Account Rules, communicated via Saudi Central Bank Circular No. (65681/67) dated 1440/11/01 AH.

I hereby inform you of the amendment to the requirements of the aforementioned rule by excluding the requirement to obtain copies of the founder's or founders' identities when opening bank accounts for Family Offices, according to the attached format.

For your information and action as of its date.

Accept my regards,

[Signature]

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

• Banks and commercial banks operating in the Kingdom.

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia, Phone: +966 11 463 2000

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[Logo: Saudi Central Bank]

Amendment of the requirements of Rule No. (300-1-5-3) concerning Family Offices

• Family Offices:
  Bank accounts for these institutions (Family Offices) are opened in Saudi Riyals only as follows:

1. A letter from the Chairman of the Board of Trustees or his delegate to the bank where the account is to be opened, clearly specifying the purpose of opening the account.
2. A copy of the license issued by the Ministry of Human Resources and Social Development.
3. A copy of the Family Office's bylaws.
4. A copy of the decision forming the Board of Trustees, and copies of the identities of its members.
5. The account is managed by joint signatures of at least two persons, one of whom must be the Chairman of the Board of Trustees or the Vice Chairman, and the Financial Supervisor (mandatory signature). A decision by the Board of Trustees is permitted to delegate two of its members or two Saudi executive management leaders to manage the account, subject to the approval of the Minister or his delegate.
6. Disbursements from the Family Office are made according to the mechanisms and conditions stipulated in the Family Office's bylaws.
7. Acceptance of funds, donations, bequests, zakat, and subscriptions (if any) is permitted only from the founders and family members, provided the bank obtains a declaration from the Chairman of the Board of Trustees committing to this requirement.
8. The Family Office is permitted to invest its funds in accordance with the provisions of its bylaws.
9. These Family Offices are strictly prohibited from transferring funds or issuing bank or personal checks outside the Kingdom.
10. Approval from the Director of the Compliance Department is required to open the account.

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia, Phone: +966 11 463 2000