Circular

To Whom It May Concern,
Greetings and blessings of Allah.

Subject: Introduction of a New Paragraph within Rule No. (300-1-5-3) of the Account Opening Rules.

Reference is made to Rule No. (300-1-5-3) included in the Account Opening Rules communicated via Central Bank Circular No. (6561/67) dated 11/01/1440 AH, which outlines the requirements for opening and managing bank accounts for non-profit institutions.

Please be informed of the amendment to the aforementioned rule by introducing a sub-rule governing the opening and management of bank accounts for non-profit institutions established by Royal Orders, according to the attached format.

For your information and action effective as of its date, the Central Bank also emphasizes the importance of adhering to the instructions communicated via Circular No. (45.34.76) dated 26/5/1440 AH, regarding the exemption of King Faisal Foundation from the requirement to obtain approval from the Ministry of Human Resources and Social Development for opening bank accounts, transferring funds, or issuing checks abroad.

Mohammed bin Sulaiman

Yours sincerely,
Governor

Yazed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Bair bin Abdulhamid Al-Nufjan
Deputy Governor for Financial Innovation

Distribution Scope:

• Banks and institutions operating within the Kingdom.

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The Newly Introduced Paragraph within Rule No. (300-1-5-3) Regarding the Requirements for Opening and Managing Bank Accounts for Non-Profit Institutions.

Non-Profit Institutions / 300-1-5-3

Non-Profit Institutions Established by Royal Orders:

Bank accounts for non-profit institutions established by Royal Orders shall be opened as follows:

1. A copy of the High Authority's approval decree establishing the non-profit institution.
2. A copy of the institution's articles of association.
3. A copy of the board of trustees formation resolution, along with identification and verification of members' identities.
4. A copy of the IDs of persons authorized to manage the bank account, with verification of their authorization through designation by a board resolution; signatures shall be jointly held by two officials unless the articles of association stipulate otherwise.
5. Any transactions (transfers or issuance of collection checks, etc.) to outside the Kingdom are permitted after verifying that such transactions align with the main activity or purpose for which the institution was established under its articles of association.
6. Transactions (transfers or issuance of collection checks, etc.) outside the Kingdom that do not align with the institution's main activity or purpose under its articles of association are not permitted, except for transfers for institutional business management. For example: consulting service fees or participation in external seminars and conferences, subject to obtaining approval from the National Center for Non-Profit Sector Development.

End

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Important Note:

To keep track of updates and amendments to the rules, the Central Bank emphasizes always relying on the version of the rules published on its official website:
www.sama.gov.sa

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P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000
P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000