Regulatory Alerts2016-12-05
Applying KYC Principles to Prepaid Service Product Customers
The Saudi Arabian Monetary Authority mandates that banks apply the Know Your Customer (KYC) principle to prepaid service product customers by shifting verification responsibilities from cardholders to the main account holders or contracting entities. Banks are required to validate submitted data against the National Center for Information, develop operational monitoring systems to ensure product integrity, and implement flexible delivery and activation procedures utilizing electronic channels, verified mobile numbers, or biometric matching. These measures support the expansion of prepaid products while maintaining robust supervisory and regulatory compliance.
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