Rules for Receiving Money Transfers for Transfer or Currency Exchange Purposes

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Saudi Central Bank
Circular No.: 43098769
Date: 29/11/1443 (June 2022)
Attachments: 4 pages

Respected Sirs,

Peace be upon you,

Subject: Rules for Receiving Money Transfers for Transfer or Currency Exchange Purposes.

Referring to the Saudi Central Bank instructions communicated to exchange centers via Circular No. (41056269) dated 12/9/1441H, which allows the receipt of money transfers through electronic payment means for currency exchange under specific conditions.

Attached are the Rules for Receiving Money Transfers for Transfer or Currency Exchange Purposes, which supersede the aforementioned instructions.

For reference and implementation effective from its date.

Yours sincerely,
Ziyad bin Ahmed Al-Sheikh
General Manager of Banking Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.
• Exchange centers operating in the Kingdom.

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Rules for Receiving Money Transfers for Transfer or Currency Exchange Purposes (Dhul-Qi'dah 1443H / June 2022M)

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Index
First: Introduction ................................................................................................................. 3
A. Objective ....................................................................................................................... 3
B. Scope ..................................................................................................................... 3
Second: Rules ................................................................................................................ 3

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First: Introduction
A. Objective
These instructions aim to establish the minimum procedures that exchange and transfer centers must comply with when receiving funds from customers via electronic payment means for transfer or currency exchange purposes.

B. Scope
These instructions apply to all exchange centers and bank-affiliated transfer centers operating in the Kingdom under the supervision of the Saudi Central Bank.

Second: Rules

1. Exchange centers and bank-affiliated transfer centers must designate an independent bank account to receive money transfers from customers for transfer or currency exchange, provided that it is processed through one of the available electronic payment means.
2. The receipt of money transfers is restricted to exchange center members only, and the membership must have a unified reference number linked to the customer's ID. The amounts of transfers credited to the bank account must be in Saudi Riyals.
3. Exchange centers are prohibited from receiving customer transfers originating from banks or transfer companies outside the Kingdom for currency exchange purposes.
4. Exchange centers and bank-affiliated transfer centers must verify the customer transferring funds to the bank account, record all information, and retain it. The transferred amount (currency/transfer) is delivered to the transferring customer or their authorized representative based on official documents explicitly authorizing them.
5. Exchange centers and bank-affiliated transfer centers are prohibited from transferring funds to customer accounts, except when canceling a transaction executed via the bank account transfer. The center must comply with the following in this case:
   a- No transferred amounts shall be reissued in cash. b- If the canceled transaction was processed through available electronic payment means, the amount is refunded to the used payment account. If the canceled transaction was processed via point-of-sale (POS) terminals, the amount is refunded to the card account. c- Amounts resulting from canceled transactions or unclaimed customer funds (currency/transfer) are returned to the customer's account within a period not exceeding three business days, with the exchange center maintaining a clear action plan for refunds in coordination with its bank.
6. Exchange centers and bank-affiliated transfer centers must obtain prior agreement from customers wishing to transfer to the center's account regarding transfer fees and exchange rates before completing the transaction, with such agreement documented.
7. Exchange centers and bank-affiliated transfer centers must educate customers wishing to transfer to the bank account on specifying the transaction amount and currency during the process, with education provided at minimum through informational boards and membership terms.

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8. Exchange centers and bank-affiliated transfer centers must apply due diligence measures in accordance with the regulatory requirements stipulated in the Anti-Money Laundering Law, the Counter-Terrorism Financing Law, and their executive regulations, as well as comply with all relevant systems, instructions, and circulars of the Saudi Central Bank.
9. Exchange centers and bank-affiliated transfer centers must continuously develop their internal procedures in this regard to align with the nature and volume of their operations, following relevant best practices.