Regulations for the Transactions of Non-Profit Organizations

Issuing Authority: Central Bank of Saudi Arabia (SAMA)

1. General Provisions

These regulations govern the financial transactions, operational activities, and regulatory compliance of non-profit organizations (NPOs) operating within the Kingdom. They apply to all entities registered as non-profit under Saudi law, covering their banking operations, fund management, and reporting obligations.

2. Definitions

• Non-Profit Organization: An entity established for social, charitable, educational, or cultural purposes, which does not distribute profits to its members.
• Financial Transactions: All deposits, withdrawals, transfers, payments, and remittances executed by NPOs through licensed financial institutions.
• Regulatory Reporting: The periodic submission of financial statements, audit reports, and transaction summaries to SAMA.
• Compliance: Adherence to anti-money laundering (AML), counter-financing of terrorism (CFT), and foreign exchange regulations.

3. Account and Fund Management

NPOs must maintain dedicated bank accounts for receiving donations, managing operational funds, and executing transactions. Separate accounting records shall be kept to ensure transparency, traceability, and proper allocation of funds according to the organization’s stated objectives.

4. Operational Guidelines

• NPOs are permitted to conduct domestic and cross-border transactions in compliance with SAMA’s foreign exchange regulations.
• All donations, grants, and contributions must be properly documented, with source verification maintained for amounts exceeding regulatory thresholds.
• NPOs must appoint a qualified financial officer or external auditor responsible for overseeing compliance with these regulations and maintaining accurate financial records.

5. Supervision and Enforcement

SAMA retains the authority to inspect NPO financial records, request additional documentation, and issue directives to ensure adherence to regulatory standards. Non-compliant entities may be subject to corrective measures, including account restrictions, fines, or suspension of specific transaction privileges.

6. Reporting Obligations

NPOs must submit annual audited financial statements and quarterly transaction reports to SAMA within the prescribed deadlines. Electronic reporting platforms are encouraged, and digital submissions shall carry the same legal weight as physical documents. All material changes in organizational structure or financial status must be reported within thirty (30) days of occurrence.

7. Amendments and Transition

These regulations may be amended by SAMA to reflect evolving financial practices, technological advancements, and regulatory requirements. All existing NPOs must align their operations with these provisions within the transition period specified by the Bank. Any conflicts between these regulations and prior directives shall be resolved in favor of the most recent regulatory guidance.