Compliance with Employing Citizens and the Requirements for Contracting with Recruitment Service Companies

Saudi Arabian Monetary Authority
Headquarters
Banking Supervision Department
Ref: / B.S. /
Attachments:
"Circular"
Ref: 341000068320
Date: 1434/06/03
Attachments:
To: / Bank / Company / General Administration / Respected Greetings:
Subject: Compliance with Employing Citizens and the Requirements for Contracting with Recruitment Service Companies Referring to the Authority's Circular No. 1712/B.S./88 dated 1416/2/6 AH, Circular No. 3851/B.S./124 dated 1410/4/2 AH, and other circulars regarding efforts to localize jobs in banks, and continuing the efforts made by the Authority and banks in localizing positions and qualifying Saudis to fill them, and given the importance of doubling efforts to achieve the desired objectives in line with general directions, the Authority emphasizes the necessity of complying with the following:

First) Employing Citizens

1. Work towards localizing all positions across all types and levels, including senior leadership and supervisory roles, and do not restrict localization to specific jobs. Contracts with non-Saudi employees shall only be concluded when a qualified Saudi is unavailable at the time, in accordance with the provisions of the Labor System issued by Royal Decree No. M/51 dated 1426/08/23 AH.
2. Appointment and work in all branch, transfer center, and cash center positions shall be restricted to Saudis only, without specifying job types, and efforts shall be made to complete the replacement of employees with Saudis by no later than 2013/12/31. Appointment of one non-Saudi employee in transfer centers may be permitted if the bank or exchange house deems it necessary, provided that their role is limited to providing assistance and customer service, without authorization to access the bank's data and automated systems, execute banking transactions, or open customer membership accounts.
3. Appointments for all cash-related positions, money transfer and remittance positions, information security-related positions, and positions related to combating money laundering and terrorist financing shall be restricted to Saudis only across all bank departments, exchange houses, branches, and affiliated transfer centers.
4. Develop specific programs and plans for localizing all positions and provide them to the Authority within three months of this circular's date, and work on attracting, training, and qualifying national cadres to replace non-Saudi employees within a specified period.
5. Prohibit direct and indirect dealings with any entities or individuals acting as marketing agents for banking services within the Kingdom on behalf of external banks or financial institutions, and do not allow representatives of such entities to be present inside the bank, exchange house, or any of its branches or centers.
6. Develop time-bound plans and programs for training and qualifying Saudis in implementation of the aforementioned instructions and provide them to the Authority within two months of this circular's date.

Second) Compliance with Requirements for Contracting with Recruitment Service Companies.

1. Select companies specialized in providing recruitment and outsourcing services, and verify the integrity of contracts concluded with them, as well as their compliance with and fulfillment of the Authority's and relevant authorities' requirements.
2. Ensure the regularity of work for all employees, their suitability for assigned duties, and compliance with what is recorded in work and residence permits.

Saudi Arabian Monetary Authority
Headquarters
Banking Supervision Department
Ref: / B.S. /
Date:
Attachments:
Corresponding Date:

Third) The Human Resources Department is tasked with developing an action plan for job localization, training, and qualifying incumbents, and commencing its implementation. The Compliance Department is tasked with monitoring and supervising its implementation according to the aforementioned requirements, and preparing reports at the end of each quarter regarding progress in job localization and training until the end of the period.

Yours sincerely,,,
Deputy Governor for Technical Affairs
[Signature]
Abdulrahman bin Abdulmohsin Al-Khalaf Al-Obeidi / Circular

• Banks operating in the Kingdom
• Category (A) Exchange Houses operating in the Kingdom

P.O. Box 2992, Riyadh 11169, Central Telegram, Telex 404400, Tel 4662440, Fax 4662865