Regulatory Alerts2017-09-20
Accelerating Bank Account Opening Procedures for Legal Entities
The Saudi Central Bank mandates all banks and financial institutions operating in the Kingdom to accelerate bank account opening procedures for legal entities, requiring them to complete and notify applicants of account details within one business day of fulfilling all requirements. This directive, issued pursuant to Royal Order No. 42563 and aligned with the General Authority for Investment’s competitiveness goals, ensures compliance with existing account opening rules while introducing standardized documentation and deficiency notification protocols. Financial institutions must implement internal controls to track applications, promptly inform applicants of any missing requirements upon submission, and formally document all account opening processes.