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.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Head Office
Banking Policies Department
Reference No.: Date: 1437/08/01 AH Attachments:
Reference No.: 371000084720 Date: 1437/08/01 AH Attachments:
Circular
Your Excellency, .................................................................................................
Greetings,
Subject: Accelerating the procedures for opening bank accounts for legal entities.
Reference is made to the esteemed Royal Order No. (42563) dated 15/10/1435 AH regarding the continued coordination among government entities with the General Authority for Investment and the agreement on appropriate mechanisms to achieve the objective of raising the competitiveness of the investment environment in the Kingdom to the ranks of the best countries globally according to international competitiveness standards and indicators, as well as the proposed recommendations to enhance the Kingdom's investment competitiveness, including working on accelerating the procedures for opening bank accounts for licensed legal entities.
The Saudi Central Bank confirms the necessity for all banks and financial institutions operating in the Kingdom to take the necessary steps to accelerate the procedures for opening bank accounts for legal entities, without prejudice to the requirements of bank account opening rules and general operating rules and other related systems and regulations, and to complete the procedures for opening a bank account for a legal entity and notify them of the account number and its details within one business day from the completion of account opening requirements, and to put in place necessary procedures and controls to ensure compliance with the foregoing, including providing the account applicant with the requirements needed to open an account and notifying them of any deficiencies or additional requirements immediately upon submitting the account opening application, and documenting this in writing.
For information and to notify all concerned departments and branches to act accordingly.
Yours sincerely,
Tariq bin Abdulrahman Al-Sedhan Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom.
P.O. Box 2992 Riyadh 11169, Telegram Address: Markazi, Telex 404400, Phone 4633000, Fax 4662414