Regulatory Alerts2012-09-02
Combating the practice of banking and investment business in the Kingdom without a licence
The Saudi Arabian Monetary Authority (SAMA) has directed all domestic banks and Category (A) money changers to immediately block all financial transfers to and from three foreign entities: FX SOLUTION LLC, IFX MARKETS INC., and FOREX CAPITAL MARKETS LTD. This directive formally adds these companies to the regulator’s prohibited list, mandating that financial institutions refuse any account openings, incoming remittances, or outgoing fund transfers involving them. Additionally, institutions are required to halt any suspicious transactions resembling these activities and report them directly to SAMA without delay.
In the name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office
Banking Inspection Administration Ref. No.: .................... / M.A. / 24281 Attachments: ....................
Saudi Arabian Monetary Authority Ref. No. 49264 / M.A. / 24281 Date 16/10/1433H Attachments: ||||||||||||||||||||||||||||||||||||||||
"Circular"
To: .................................................................................... With best regards:
Subject: Combating the practice of banking and investment business in the Kingdom without a licence
Further to the Authority's Circulars No. 12184/M.A./5831 dated 06/03/1431H and No. 4382/M.A./1976 dated 23/01/1431H, and previous circulars concerning compliance with the prohibition on opening any accounts, receiving remittances, or conducting any transfer operations for certain foreign companies and offices practicing banking and investment activities in the Kingdom without a permit, whether via local offices or otherwise.
We wish to inform you that it has come to the Authority's attention that several customers have attempted to execute external financial (transfer) operations in favor of the following companies:
- FX SOLUTION LLC.
- IFX MARKETS INC.
- FOREX CAPITAL MARKETS LTD.
As the aforementioned companies are not included in the list of prohibited companies in the Authority's previous circulars, we request adding them to the list of companies previously named in those circulars, and applying instructions prohibiting dealings with them, including not allowing any fund transfers in their favor or receiving any remittances from them. Additionally, we request that in the event of suspicion regarding similar operations, the transfer be blocked and the Authority be notified immediately.
Yours sincerely,,,
Deputy Governor for Technical Affairs (Signature) Abdulrahman bin Abdulmohsin Al-Khalaf
Distribution Scope: • Banks operating in the Kingdom. • Category (A) Money Changers. Compliance Control - Return
P.O. Box 2992, Riyadh 11169, Central Telegram, Telex 404400, Tel 4662440, Fax 4662865