SAMA Approval to Provide Remittance Services

In the Name of Allah, the Most Gracious, the Most Merciful Saudi Arabian Monetary Authority Head Office

Banking Supervision Department
No.: 464/5/M 24696
Attachments:
Urgent Circular
Date: 15/7/1430 AH
Corresponding Date: 10/7/2009 AD

Dear Bank,
Greetings:

With reference to the Authority's Circular No. M At/107 dated 14/2/1428 AH and Circular No. 44102/M At/830 dated 9/11/1428 AH regarding the enhancement of financial transfer services provided by licensed banks and exchange houses, and clarifying the legal status of companies and financial transfer agencies dealing with local licensed banks and exchange houses.

And in light of the potential increase in risks and systemic responsibilities associated with transfer operations for licensed banks and exchange houses specifically, and the soundness and reputation of the banking sector in the Kingdom generally, which may result from licensed banks and exchange houses contracting with specialized international companies to provide money transfer services without obtaining prior approval from SAMA.

Therefore, we wish to confirm that all licensed banks and exchange houses authorized for money transfer operations must obtain prior approval from SAMA before contracting with any specialized transfer companies.

Furthermore, licensed banks and exchange houses with existing contracts must review these contracts to ensure compliance with all applicable regulatory requirements in the Kingdom, as well as related instructions and controls issued by SAMA, including circulars on transfer operations, rules for opening and operating bank accounts, anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations, and outsourcing controls. They must then submit to SAMA for approval the continuation of dealings with these companies, and report on actions taken in this regard within one month from the date hereof.

Yours sincerely,

Deputy Governor for Technical Affairs
Dr. Abdulrahman bin Abdullah Al-Humaidan

Distribution Scope:

• All banks operating in the Kingdom
• Licensed exchange houses (Category A)

P.O. Box 2992, Riyadh 11169, Central Telegraph, Telex 404400, Tel. 4662440, Fax 4662865