Regulatory Alerts2024-04-22
Introduction of a New Paragraph within the Rule No. (300-1-5-3) of the Account Opening Rules
The Saudi Central Bank has issued a circular introducing a new sub-rule to Rule No. 300-1-5-3 that establishes specific documentation and authorization requirements for opening and managing bank accounts of non-profit institutions created by Royal Orders. The amendment permits cross-border transfers and check issuances aligned with the institution’s core purpose, subject to National Center for Non-Profit Sector Development approval for certain activities, while explicitly exempting King Faisal Foundation from the Ministry of Human Resources and Social Development’s prior approval. Institutions must submit royal establishment decrees, articles of association, board resolutions designating authorized signatories, and verified identification documents to comply with the updated framework.