Instructions for Replacing the Commercial Registration Number and Licences for Non-Governmental Establishments with the Unified Number Starting with (7)

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters Banking Policy Department Ref. No.: 42017708 Date: 18/03/1442 AH Attachments: 6 pages

Important and Urgent Circular
To: Respected Sirs,
Peace, mercy of Allah and His blessings be upon you.
Subject: Instructions for Replacing the Commercial Registration Number and Licences for Non-Governmental Establishments with the Unified Number Starting with (7).

I refer to the Bank's instructions issued pursuant to Circular No. (42007290) dated 11/02/1442 AH, concerning the above subject. These are based on Council of Ministers Resolution No. (225) dated 06/05/1439 AH, the official letter of His Excellency the Minister of Commerce No. (29238) dated 09/11/1441 AH, the official letter of His Excellency the President of the Saudi Data and Artificial Intelligence Authority No. (702) dated 20/12/1441 AH, and the Bank's supplementary instructions regarding the replacement plan and requirements and timeframes (the latest being the instructions pursuant to the circular specifying the replacement deadline until 15 November 2020 AD), which are based on data from the Bank's coordination with the competent authority responsible for replacement.

Given the importance of maintaining financial stability and ensuring no disruption to operations, data, and information, and given the significance of this change by replacing commercial registration numbers and licences with unified numbers to serve as the digital identity for non-governmental establishments throughout their lifecycle, where inquiries, disclosures, transactions, execution, and other actions by all government entities will be legally authorized based on the unified number starting with (7). Based on challenges, difficulties, and expected impacts of the required change on legal, financial, credit, operational aspects, services, and products provided, which have been identified during the application of the aforementioned instructions, and following coordination with the competent authority for unified number replacement, and in accordance with the Bank's commitment to coordinate and monitor the sectors under its supervision regarding replacement according to an operational plan whose developments are continuously evaluated, I inform you as follows:

First: The replacement timeframe is extended until 16/05/1442 AH (corresponding to 31/12/2020 AD), and emerging fundamental challenges and difficulties will be evaluated during this period, based on effective and acceptable efforts according to periodic reports provided to the Bank.
Second: Compliance with the attached replacement instructions.
Third: These instructions supersede all previous circulars' instructions.

Yours sincerely,
Fahd bin Ibrahim Al-Shathri
Acting Governor for Supervision

Distribution Scope:

• All financial institutions subject to the Bank's supervision and oversight.
• All credit information companies.
• The Bank's departments and branches.
  P.O. Box 2992, Riyadh 11169, Telex: MARKAZI, Fax: 404400, Tel: 4633000, Fax: 4662414

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Instructions for Replacing the Unified Number Issued by the National Information Center Starting with (7) in Place of the Commercial Registration Number for Non-Governmental Establishments November 2020 AD

1- System (Automation) Requirements for Replacement in Automated Systems: Preparing unified number replacement requirements in automated systems (automation) that require modification by adding/creating a field to identify the unified number of non-governmental establishments in all necessary internal and external automated systems, including a field for the commercial registration number and retaining the current commercial registration number field. Linking the newly created unified number field with the commercial registration number field (two interrelated fields), so that if searching and inquiring by the commercial registration number, the unified number starting with (7) appears to the inquirer simultaneously, and if searching and inquiring by the unified number, the commercial registration number appears. 2- Continuation of the Commercial Registration Number Field: The current commercial registration number field must not be deleted, and its use shall not be discontinued unless directed or permitted by the Bank in the future. 3- Service Providers: Urgently working on contracting with service providers if the necessary system requirements for unified number replacement are executed by service providers (complying with communicated delegation instructions), such that this requirement does not cause delay. 4- Implications of Replacement: Work must be done to identify potential risks and implications arising from the unified number replacement process, and develop plans to mitigate them, including business continuity plans and necessary support (technical, human, etc.). Consider relationships in automated systems related to high risks, including but not limited to, credit and commercial operations, attachments/garnishments, trading bans, dormant accounts, local and international lists (UN), Know Your Customer (KYC) requirements generally, and beneficial ownership verification. 5- Required Enumeration: Work must be done to enumerate all parties related to replacement, including but not limited to the following:
(1) Enumerate all current customers with existing accounts, memberships, and contractual relationships (all non-governmental establishments, whether companies or institutions affiliated with the financial institution via commercial registration or other entities besides commercial registration - licensed - such as lawyers and public benefit associations, etc.). (2) Enumerate all business partners (supervisory and regulatory authorities, financial institutions, credit information companies, SADAD, MAHDA, IFSAHL, MUFAWTA, SARIF, SAQR, government entities, etc.). (3) Enumerate all members and their customers for credit information companies. 6- Obtaining the Unified Number: The unified number corresponding to each commercial registration number must be obtained for each customer, business partner, and others required to obtain their unified number through the following:
(1) The Ministry of Commerce website for non-governmental establishments holding a commercial registration.
(2) Or through the Ministry of Human Resources and Social Development website for non-governmental establishments holding a licence from a licensing authority.
(3) Or from Thiqa Company / Wasith Service, where the company is provided with the enumerated commercial registration numbers to obtain the unified number for each commercial registration in a manner suitable for each financial institution.
(4) Or from any other reliable official electronic source from which the unified number can be obtained.
(5) Or from the financial institutions and credit information database, as available to them in matching document images.
7- Inability to Obtain the Unified Number per Paragraph (6): As an exception to the requirement in paragraph (6), in cases where obtaining the unified number corresponding to the commercial registration number from Thiqa Company is impossible, particularly due to limited customers and other reasons, it can be obtained through the Bank's coordinators whose details are mentioned in previous circulars per sector. They will be requested via official email using an encrypted Excel file consisting of a single column containing only the list of commercial registration numbers (and no other customer information), with the password to open the file sent in a subsequent email. The coordinator will provide the requesting entity with the unified numbers whose information is available, using the same incoming mechanism. 8- Replacing the Unified Number: After obtaining the unified number corresponding to each commercial registration for non-governmental establishments that hold commercial registrations (or those whose activity requires a commercial registration, regardless of the registration status: active / inactive / suspended / cancelled), it must be replaced in the newly created field in the automated system identifying customers and business partners, within the test environment. 9- Live and Test Environments: The unified number is not incorporated into automated systems in the live environment (direct operations) until necessary tests are conducted in a test work environment, all risks and security measures are reviewed, those risks are confirmed closed, and the relevant business unit obtains approval to transition to the live environment according to approved policies. Precise monitoring is required after implementation in the live environment, and necessary actions are taken if the financial institution is affected. Some financial institutions (other than banks, financing, and insurance) are exempted from the mandatory application in a test environment based on their activity nature, automated systems, customer count, and transaction methods. 10- National Payment Systems: Given that replacing the unified number has direct impacts on certain operational processes and services provided by government entities and financial institutions supervised by the Bank through national payment systems, particularly MAHDA and SADAD, it is necessary to confirm what the Saudi Payments Company has previously shared with banks regarding the following:
MAHDA (POS):
(1) Immediate update of the registered commercial registration number in the Point of Sale Management System (TMS) for merchants who received financial financing secured by POS device cash flows, based on the Bank's Circular No. 645310000391 dated 05/06/1439 AH regarding financing for small, medium, and micro-enterprises secured by POS device cash flows. (2) A step to update the registered commercial registration number in the Point of Sale Management System (TMS) for other customers will be gradually incorporated into the above steps, and new customer registration will use the new unified number starting with (7). SADAD:
(1) When updating the commercial registration number to the new unified number for any private sector establishment, the bank creates a new customer file in the SADAD system and then automatically re-links invoice accounts associated with the establishment's account to the previous registration number, which must be completed before 15/11/2020 AD.
11- Tatmeen and SAMA Net Systems: The modification in automated systems through which financial institutions (banks) interact with the Bank must include both Tatmeen and SAMA Net systems.
12- Communicated Instructions by the Bank Regarding Execution of Judicial, Security, and Civil Procedures: When executing communicated instructions regarding attachment, data request, document retrieval, or transfer execution, compliance with the following is required:
(1) If receiving an attachment, trading ban, or transfer ban request against any non-governmental establishment, whether via technical systems (Tatmeen / SAMA Net) or others, and the request contains the unified number and commercial registration/licence number (or one of them), execution in financial institution and credit information systems must be based on both numbers. (2) If receiving a request to lift attachment, trading ban, or transfer ban containing the unified number, and it relates to a prior request for an entity executed against by commercial registration/licence number, the unified number of the establishment must be matched with the commercial registration/licence number, and verification that both numbers belong to the same establishment is required to ensure correct and sound execution. (3) If a financial institution receives a transaction related to an information or document retrieval request, and the transaction contains the unified number or commercial registration/licence number (or both), searching in automated systems must be conducted using the number provided in the transaction and also by its corresponding number to ensure comprehensive search of financial relationships and accurate provision of required information. (4) It is necessary to confirm ensuring that attachments and their lifting, trading bans and their lifting on financial relationships are not affected. 13- Opening New Accounts, Relationships, and Contracts: When a customer applies to open an account / trading membership / establish a contractual relationship, the specified requirements are applied in the following cases:
(1) If the unified number field is prepared and ready in automated systems and linked to the commercial registration number, the account / membership / contractual relationship is opened based on the commercial registration number and unified number in the two interrelated fields.
(2) If the unified number field is not yet ready in automated systems and the customer submits a document containing both commercial registration and unified numbers, accounts / memberships / contractual relationships are opened based on the commercial registration number only, with the unified number entered immediately after completing replacement requirements in automated systems. (3) If automated systems are ready with the unified number and the customer applies to open an account / membership / contractual relationship and submits establishment identity proof containing only commercial registration number / licence (and not the unified number), accounts / memberships / contractual relationships are opened only after providing proof of the unified number from a reliable source, whether holding a commercial registration or entity licence. (4) Accounts / memberships / contractual relationships established by financial institutions during the period from 17/02/1442 AH (corresponding to 04/10/2020 AD) until present must be reviewed, and verified to comply with the three paragraphs (3, 2, 1) above. 14- Training: Training and conducting necessary workshops for relevant parties regarding application and execution are important and urgent requirements. 15- Project Management and Requirement Execution: A working team and a replacement manager must be formed to take necessary actions for managing and monitoring the operational and time plans. 16- Submitting Periodic Reports to the Bank on Achievements: The bank must be provided (to coordinators whose details are communicated to you per sector) with a weekly report on weekly achievements according to the table in the attached file and any subsequent modifications.

Other Matters:
17- Source for Obtaining Unified Numbers for Establishments Without / Not Requiring a Commercial Registration: According to current information at the Bank, this is done through the Ministry of Human Resources and Social Development website. However, for obtaining them in bulk lists (BULK PACK) from an official electronic channel, the Bank is currently researching how to obtain them for both financial institution customers and credit information companies. A circular will be issued to all upon achieving this, but efforts should be made to obtain them to avoid channel unavailability and save time. 18- Active, Cancelled, Suspended, and Inactive Commercial Registrations Without Unified Number: The Bank is currently coordinating with relevant entities regarding commercial registrations that have not been issued a unified number for any reason, whether cancelled, or having a unified number but suspended for any reason with active data, and active commercial registrations without a unified number. A circular will be issued to all upon completion of arrangements. 19- Modification of Contract and Agreement Content: Forms and contracts related to this should be reviewed as deemed appropriate until requirements are completed and the registration field is cancelled in the future per paragraph (2). 20- Variation of Some Requirements by Sector: It should be considered that some requirements may differ in application from sector to sector. 21- Other Instructions: Other measures may be taken as deemed appropriate by the financial and credit institution, provided they do not impair or conflict with the above instructions. End