Exemption of Bank Accounts for Enforcement Courts Established to Collect Enforcement Amounts from Inoperative Account Classification Stages

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Saudi Central Bank
Circular
Reference No.: 46015210 | Date: 1446/03/06 (AH) | Attachments: None

To Whom It May Concern,
Greetings,

Subject: Exemption of Bank Accounts for Enforcement Courts Established to Collect Enforcement Amounts from Inoperative Account Classification Stages.

Reference is made to the Bank Accounts Rules communicated via Circular No. (65681/67) dated 1440/11/01 AH and subsequent amendments, which include Rule (Fifth) regarding Inoperative Banking Transactions and Item No. (8) concerning the opening of bank accounts without deposit under Rule No. (100). Furthermore, regarding the bank accounts of enforcement courts established for depositing funds, and given the special nature of this account type—whose purpose is to collect enforcement amounts, concluding upon completion and disbursement to the Ministry or beneficiary in accordance with the aforementioned rules—

Please be informed that the bank accounts of enforcement courts established to collect enforcement amounts are hereby exempted from Item No. (5-2) concerning the "Classification of Periods, Time Durations, and Processing Requirements for Inoperative Banking Transactions" under the aforementioned rules, as well as from the account closure requirement in case no amounts are deposited within a (90)-day period, as stipulated in Item No. (8) regarding the opening of accounts without deposit under Rule No. (100). Accordingly, the relevant Bank Accounts Rules are amended as follows:

First: Amendment of Rule (Fifth) regarding Inoperative Banking Transactions, to read as follows: "... Accounts of government entities are exempted from the provisions of this Rule, solely concerning the dormant account stage detailed in Paragraph (5-2-4). Bank accounts of enforcement courts established to collect enforcement amounts are also exempted from all three classification stages detailed in Item No. (5-2). Furthermore, accounts of the statutory reserve deposited by financial institutions under the supervision of the Saudi Central Bank are exempted from all provisions of this Rule, as their balances may not be disposed of without prior written approval from the Saudi Central Bank."

Second: Amendment of Item No. (8) regarding the opening of bank accounts without deposit under Rule No. (100), to read as follows:
"The Bank shall accept a request to open an account for any client who requests it, provided that all required documents and conditions for opening the account are complete. The Bank must also accept opening an account without requiring any deposit, and if no amounts are deposited within a (90)-day period, the Bank shall close the account. This requirement is exempted for accounts of government entities where the Ministry of Finance approves opening them without any deposit for a period determined by the Ministry, regardless of its duration, as well as bank accounts of enforcement courts established to collect enforcement amounts."

For information and action as of the date hereof. The Saudi Central Bank confirms that this does not relieve banks of their responsibility to monitor these bank accounts, emphasizing the importance of continued official correspondence and communication with the Ministry of Justice or its authorized representatives regarding whether to keep the account open or close it, in case no amounts are deposited within a (90)-day period from the account's establishment or if a (twenty-four) calendar month period has elapsed since the last financial transaction, in accordance with the Bank Accounts Rules and related instructions.

Yours sincerely,

Yazeed bin Ahmed Al-Sheikh
Deputy Governor for Supervision

On behalf of / Yazeed bin AbdulAeed Al-Nufjan
Deputy Governor for Financial Innovation

Distribution Scope:

• All banks and financial institutions operating in the Kingdom