ATM Instructions

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Saudi Central Bank

Circular No.: 46010824 Date: 1446/02/18 (AH) Attachments:

To Whom It May Concern, Peace be upon you, Subject: ATM Instructions

Based on the authorities vested in SAMA under its system issued by Royal Decree No. (M/36) dated 11-4-1442 AH, and the Banking Control System issued by Royal Decree No. (M/5) dated 22-2-1386 AH, and in light of SAMA's efforts to establish a regulatory and supervisory framework for ATM licenses.

Attached are the ATM Instructions, which aim to encourage geographical distribution of the ATM network to ensure coverage across all regions, in addition to establishing a supervisory framework for licensing and revoking ATM licenses.

For information and action as of the date hereof. Please note that these Instructions supersede previous SAMA circulars regarding the licensing and revocation of ATM licenses.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom

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ATM Instructions August 2024 CE

Saudi Central Bank

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Table of Contents

Subject	Page No.
Table of Contents	2
Introduction	3
Scope of Application	3
Definitions	3
ATM Licensing	4
ATM Revocation	5
ATM Replacement	5
Customer Communication	6
Reporting Requirements	6
Effectiveness of Instructions	6
Appendices	7

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1. Introduction SAMA issued these Instructions within the framework of its powers granted under the SAMA System (Royal Decree No. M/36, 11-4-1442 AH) and the Banking Control System (Royal Decree No. M/5, 22-2-1386 AH). These Instructions specify the procedures governing ATMs located outside bank/financial institution branches. They aim to: 1.1 Encourage geographical distribution of the ATM network and ensure coverage across all regions. 1.2 Establish a supervisory framework for licensing and revoking ATM licenses.

2. Scope of Application These Instructions apply to all local banks/financial institutions and branches of foreign banks licensed within the Kingdom, excluding ATMs affiliated with branch licenses.

3. Definitions The terms and phrases used in these Instructions have the meanings indicated opposite each, unless the context dictates otherwise:

Term	Definition
SAMA	Saudi Central Bank.
Instructions	ATM Instructions located outside bank/financial institution branches.
Bank/Financial Institution	Licensed bank/financial institution operating in the Kingdom under the Banking Control System.
Branches	Full-service branches providing a full range of banking services, as well as other branch models offering basic services including account opening, cash deposits, cash withdrawals, fund transfers, etc.
ATMs Affiliated with Branch Licenses	ATMs located inside bank/financial institution buildings, subject to their license, providing cash withdrawal and/or deposit services, plus other services like balance inquiry, mini statement, bill payment, fund transfers, etc.
ATMs	ATMs located outside bank/financial institution buildings, operating under independent licenses separate from branch licenses, providing cash withdrawal and other services like balance inquiry, mini statement, bill payment, fund transfers, etc.
Cash Acceptance Machines	Cash acceptance machines located outside bank/financial institution buildings, operating under independent licenses separate from branch licenses, providing cash deposit services only for certain corporate bank clients.
Drive-Thru ATMs	Drive-thru ATMs located outside bank/financial institution buildings, operating under independent licenses separate from branch licenses, offering customers cash withdrawal and other banking services via vehicle-compatible ATMs.
Shumul	A geographic information system managed by SAMA, allowing member banks/financial institutions to input their ATM locations with complete data.

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4. ATM Licensing The following conditions must be met to grant licenses for new ATMs: 4.1 Banks/financial institutions must submit all ATM license applications through SAMA Net. 4.2 The applying bank/financial institution must attach the following documents with its applications: 4.2.1 Site coordinates in decimal degrees format as follows: (Longitude 46.454109, Latitude 25.353898). 4.2.2 A copy of the contract signed between the bank and the property owner/lessee. 4.2.3 Clear photographs of the site from all directions (at least four photos), adhering to: 4.2.3.1 Image quality. 4.2.3.2 Necessity of capturing all site angles. 4.2.3.3 Providing a full-site view photo. 4.3 Any other documents requested by SAMA. 4.4 For drive-thru ATM licensing, the bank/financial institution must attach a copy of the building permit or approved architectural plans from the Municipality/City Council within which the ATM site is located. 4.5 The bank/financial institution's application is subject to SAMA review upon submission for approval. 4.6 The license validity period is nine months from the date of SAMA's approval, extendable by three additional months upon SAMA's approval and a request submitted via SAMA Net stating the reasons for extension. 4.7 Upon approval, the bank/financial institution must add the ATM site and all its data to the "Shumul" system. 4.8 The bank/financial institution must notify SAMA via SAMA Net of the ATM activation within five working days from activation. 4.9 The bank/financial institution must comply with the Financial Sector Safety and Security Guide issued in 1441 AH and its updates for all existing and new ATM sites. 4.10 The bank/financial institution must provide SAMA with annual plans for installing and revoking ATMs in October of each year, including planning for presence at the Holy Mosques during Hajj and Umrah, whether permanent or temporary sites.

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5. ATM Revocation 5.1 ATM Revocation Request 5.1.1 The bank/financial institution must submit ATM license revocation requests by completing the ATM Revocation Request Form (Appendix 1) and sending it to SAMA. 5.1.2 The applying bank/financial institution must provide: 5.1.2.1 Current site data, including a license copy showing its number and date. 5.1.2.2 Justification for the revocation request. 5.1.2.3 Photos of the site where the ATM will be removed. 5.1.2.4 Designation of the region where the ATM to be revoked is located (Appendix 1).

5.2 Revocation Request Review The request is reviewed based on specified revocation requirements, including: 5.2.1 ATM accessibility standard in the region stated in the request. 5.2.2 Ratio of existing ATMs to the bank/financial institution's customers. 5.2.3 Reason for revocation. 5.2.4 Distance from the ATM to be revoked and other ATMs of the bank/financial institution. 5.2.5 ATM utilization rate.

If the requested ATM meets the specified revocation requirements, SAMA will issue a no-objection letter to the bank/financial institution for revocation. Upon SAMA's no-objection, the bank/financial institution must remove all ATM data (license number and date, site coordinates) from the "Shumul" system within three working days, and must physically remove the revoked ATM from its site along with all associated equipment.

6. ATM Replacement To obtain SAMA's approval for revoking an ATM that does not meet standard revocation criteria, the bank/financial institution must provide a replacement ATM in the same region within a specified distance, adhering to the following requirements:

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[Page 7] 6.1 The bank/financial institution must install a replacement ATM in the same governorate and within a specified distance (Appendix 3), operating it within one hundred eighty days from the date of approval for the revocation request. 6.2 SAMA must be notified after installing and operating the replacement ATM within the specified timeframe. 6.3 If the bank/financial institution fails to comply with the stated timeframes, SAMA will not accept any other revocation request until the institution fulfills its obligation to install a replacement ATM.

7. Customer Communication The bank/financial institution must comply with the following: 7.1 Update ATM location details on their websites (internet and mobile apps). 7.2 Place an identification card on the ATM containing the ATM number and contact information in Arabic and English for customers. 7.3 Each ATM must clearly display all accepted card types.

8. Reporting Requirements The bank/financial institution must submit the following data to SAMA, according to required forms (Appendix 3): 8.1 Data must be displayed on the "Shumul" system, reflecting the actual status of ATMs at all times. 8.2 Monthly reports on new, revoked, and replaced ATMs (within five working days after month-end).

9. Effectiveness of Instructions These Instructions take effect from the date of issuance.

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[Page 8] 10. Appendices 10.1 Appendix No. (1): ATM Revocation Request Form

[ATM Revocation Request Form Table] Circulating Currency Supervision Dept. ATM Supervision Section

ATM Revocation Request Form Revocation Bank/Financial Institution Name: Request Date: Number of Bank Commitments: Existing Commitments | Revoked Commitments

[Data Table]

Request	Commitment Letter for Installing Replacement ATM	Comprehensive Photos of the ATM	License Copy	Owner's Letter	Other Documents
Attached	Attach File	Attach File	Attach File	Attach File	Attach File

[ATM Data Table] | TERMINAL ID | Site Name | Region | Governorate | City | District | Street Name | License No. | License Date | Shumul Coordinates | Operation Start Date | ATM Type | Reason for Revocation | Average Monthly Transactions (Last 12 Months) |

Reason for Revocation Explanation:

[Data Table for Replacement ATMs to be Revoked] | TERMINAL ID | Site Name | Street Name | District | City | Distance from ATM to be Revoked | License No. | Date | Shumul Coordinates | Operation Start Date | ATM Type |

10.2 Appendix No. (2): 10.2.1 Specified Distance Standard for ATM Replacement*

Region	Distance Standard
Region 1	Within 5 km
Region 2
Region 3	Within 10 km
Region 4
Region 5	Within 15 km

• Subject to SAMA's exceptional approval.

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[Page 9] 10.2.2 Region Classification

Region	Population Range
Region 1	Over 1 million
Region 2	Half a million to 1 million
Region 3	Over 100,000 to half a million
Region 4	20,000 to 100,000
Region 5	Under 20,000

10.3 Appendix No. (3): Reporting Requirements

Circulating Currency Supervision Dept. ATM Supervision Section Distribution of ATMs by Administrative Regions

[Data Table] | Bank/Financial Institution Name | Month | Year |

[Detailed Table of Administrative Regions]

Administrative Region	Riyadh Region	Makkah Region	Madinah Region	Eastern Province	Qassim Region	Hail Region	Tabuk Region	Northern Borders Region	Al Jawf Region	Jazan Region	Najran Region	Al Bahah Region	Total
ATM Location	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch
Number of ATMs	0	0	0	0	0	0	0	0	0	0	0	0	0
Number of Cash Deposit ATMs	0	0	0	0	0	0	0	0	0	0	0	0	0
Total	0	0	0	0	0	0	0	0	0	0	0	0	0

[Detailed Table of Administrative Regions]

Administrative Region	Riyadh Region	Makkah Region	Madinah Region	Eastern Province	Qassim Region	Hail Region	Tabuk Region	Northern Borders Region	Al Jawf Region	Jazan Region	Najran Region	Al Bahah Region	Total
ATM Location	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch	Outside Branch	Inside Branch
Number of Cash Deposit-Only ATMs	0	0	0	0	0	0	0	0	0	0	0	0	0
Number of Interactive Teller Machines (ITMs)	0	0	0	0	0	0	0	0	0	0	0	0	0
Number of ATMs Previous Month	0
Number of ATMs Current Month	0
Difference +/-	0

• There is a +/- difference from the previous month. Page 2 must be filled: "New/Temporary ATM Data".