Introduction of New Rule for Bank Accounts of Non-Resident Intermediary Offices for Visa Issuance

Translated Document

In Reference to the Rule No. (300-2), which sets out the rules for opening bank accounts for non-resident juristic persons , as stated in the Account Opening Rules issued by SAMA’s Circular No. (65681/67) dated 01/11/1440H. Please be informed of the following:
1. A new sub-rule under the aforementioned Rule numbered (300-2-9) titled: "Non-Resident Intermediary Offices for Visa Issuance" has been introduced, in accordance with the attached text.
2. A definition for "Non-Resident Intermediary Offices for Visa Issuance" has been added to
Chapter One – Definitions
– as follows:
An entity located outside the Kingdom and authorized by the Ministry of Foreign Affairs to provide visa issuance services on behalf of Saudi embassies or consulates for the benefit of foreign nationals wishing to enter the Kingdom. The newly introduced Rule No. (300-2-9) under Rule No. (300-2) , which sets out the rules for opening and managing bank accounts for non-resident juristic persons. 300-2-9 / Non-Resident Intermediary Offices for Visa Issuance:
Bank accounts may be opened for non-resident intermediary offices for visa issuance in accordance with the following requirements and documents:

• Requirements for opening a bank account:
  1. Bank accounts shall be opened in Saudi Riyal only.
  2. A letter from the Saudi Arabia Ministry of Foreign Affairs authorizing the opening of a bank account for the intermediary office shall be obtained, and shall include the following office information:

-The official name of the visa issuance intermediary office.

-A list of authorized signatories on the account (joint signature), who must be either members of the intermediary office or officials of the embassy of the office’s respective country.

-The position of each account signatory and his/her information as per his/her passport.

-The account purpose shall be limited to the collection of visa issuance fees only.

-The office’s bank account number in its home country or in the country designated by the Saudi Arabia Ministry of Foreign Affairs ,and the name of the bank transferring the money, which the office deals with in its home country or in the country designated by the Saudi Arabia Ministry of Foreign Affairs, shall also be stated.

3. Identification and verification of the intermediary office shall be conducted in accordance with its legal form.
4. License/commercial register issued by the official authority in the country of residence, duly attested by the Saudi Embassy or authenticated by Apostille.
5. An authorization issued by the legally authorized person granting authority to manage the bank account—unless such authority is clearly stated in the memorandum of association in the case of companies, in which case it shall suffice.
6. A list of the names, photographs, identification documents, and nationalities of the members of the board of directors and authorized managers, where applicable for each customer.
7. The account signatories shall determine, in Saudi riyal, the approximate total amount that their respective office will transfer for visa issuance purposes.
8. The bank shall conclude an account opening agreement with the authorized signatories specified in the letter of the Saudi Arabia Ministry of Foreign Affairs, addressed to the bank.
9. Identification of the real beneficiary and verification of the sources of funds.
10. The bank shall provide the intermediary office and the Saudi Arabia Ministry of Foreign Affairs with the IBAN number of the office’s bank account.

• Requirements for account operation:
  1. The approval of the bank’s compliance department is required for the operation of the office’s account.
  2. Deposits shall be made in the office’s accounts via remittances from a bank in the office’s home country or from countries designated by the Saudi Arabia Ministry of Foreign Affairs. The purpose of such remittance shall be limited to the office’s expenses related to visa issuance fees only.
  3. Deposits may be made in the account via checks under collection, drawn by the office itself on a bank in the office’s home country only.
  4. Remittances, checks or cash deposits from entities inside Saudi Arabia shall not be accepted.
  5. The account shall not provide any kind of services (checks, ATM cards, etc.)
  6. The office shall not use its account balances for investments.
  7. The account shall be subject to dual supervision within the bank.
  8. The bank must conduct annual updates and perform a risk assessment of the banking relationship.
  9. Refunds of amounts deposited into the bank account shall be permitted only to the designated bank account in the office’s home country, and solely upon a formal request from the authorized persons in the office, provided that this requirement is specified in the office’s bank account opening agreement.

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