Update the Account Opening Rules by Adding Bank Account Opening Requirements for Non-Residents Covered by the Provisions of the Law of Real Estate Ownership by Non-Saudis

Circular

To: Respected Gentlemen,

Peace, mercy, and blessings of God be upon you,

Subject: Update the Account Opening Rules by Adding Remote Account Opening Requirements for the Category of Non-Resident Customers Covered by the Provisions of the Law of Real Estate Ownership by Non-Saudis.

With reference to the Law of Real Estate Ownership by Non-Saudis, issued by Royal Decree No. (M14) dated 19/1/1447H, and its Executive Regulations, issued by Cabinet Decision No. (43) dated 8/1/1448H, and with reference to the Remote Account Opening Rules issued by Circular No. (65681/67) dated 11/1/1440H and subsequent updates thereto, and to enable non-residents to access remote banking services in the Kingdom for the purpose of owning real estate; we inform you that it has been decided to update the remote account opening rules by adding remote account opening requirements for the category of non-residents covered by the provisions of the aforementioned Law, with the approved text as follows:

• Adding Clause No. (4-2-200) titled "Non-Saudi and Non-Resident Natural Persons Covered by the Law of Real Estate Ownership by Non-Saudis" under Clause No. (2-200) "Non-Resident Natural Persons in the Kingdom" from Chapter (Third).

• Adding Clause No. (10-2-300) titled "Non-Resident Legal Persons Covered by the Law of Real Estate Ownership by Non-Saudis" under Clause No. (2-300) "Non-Resident Legal Persons" from Chapter (Third).

For your information and action from the date of issuance.

Yours faithfully,

Distribution:

• Banks and banking institutions operating in the Kingdom.

Issued by:
Ahmad Al-Shawi
Deputy Governor for Supervision

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Update the Account Opening Rules by Adding Remote Account Opening Requirements for the Category of Non-Resident Customers Covered by the Provisions of the Law of Real Estate Ownership by Non-Saudis

• Adding Clause No. (4-2-200) titled "Non-Saudi and Non-Resident Natural Persons Covered by the Law of Real Estate Ownership by Non-Saudis" under Clause No. (2-200) "Non-Resident Natural Persons in the Kingdom" from Chapter (Third).

Remote bank accounts for natural persons covered by the provisions of the Law of Real Estate Ownership by Non-Saudis for the purpose of owning real estate or acquiring other real rights on real estate in the Kingdom are subject to the following requirements and controls:

• Account Opening Requirements

1. A copy of the digital identity issued by the Kingdom's authorities in accordance with applicable regulations for the purpose of identifying the person for real estate ownership transactions.
2. A copy of the passport - if available.
3. The residential address in the customer's country of residence, contact details, and a fixed-line telephone number linked to the customer's digital identity.
4. A copy of the customer's contract or agreement with a real estate agent or broker licensed in the Kingdom - if available.
5. The customer's remote account details and a bank statement certified by the bank with which the customer deals in their country of residence or headquarters.

• General Controls

1. Verify the customer through a trusted and independent source within the Kingdom, including using the biometric verification feature.
2. Do not allow the account to be joint or to have proxies from outside the Kingdom.
3. Specify the account's purpose as owning real estate or acquiring other real rights on real estate in the Kingdom, and do not open more than one remote account, and do not issue debit or credit cards. Related transactions regarding the real estate must be conducted through trusted and approved electronic channels in the Kingdom, for example, the Real Estate Registry platform, the Ijara platform, the Kadaya system, or through a licensed real estate agent in the Kingdom - if available.
4. The bank must periodically verify the validity of the digital identity and continuously update the customer's details and information.

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• Adding Clause No. (10-2-300) titled "Non-Resident Legal Persons Covered by the Law of Real Estate Ownership by Non-Saudis" under Clause No. (2-300) "Non-Resident Legal Persons" from Chapter (Third).

Remote bank accounts for legal persons covered by the provisions of the Law of Real Estate Ownership by Non-Saudis for the purpose of owning real estate or acquiring other real rights on real estate in the Kingdom are subject to the following requirements and controls:

• Account Opening Requirements

1. A copy of the registration certificate in the Kingdom issued by the Ministry of Investment or the Center for the Development of Non-Profit Entities or the entity determined by Cabinet Decision - as applicable - and the registration number - the Unified Number starting with the digit (7).
2. A copy of the identity of the representative of the legal person and authorized to open and manage the account, issued by the Kingdom's authorities.
3. The address of the authorized person, the address of the legal person's headquarters, contact details, and a fixed-line telephone number linked to the customer/authorized person's identity issued by the Kingdom's authorities.
4. A copy of the partnership agreement, the articles of association, or the bylaws and their appendices, which clearly specify the capital structure and activities, and copies and identity photos of the board of directors members or equivalent - as applicable.
5. A copy of the customer's contract or agreement with a real estate agent or broker licensed in the Kingdom - if available.

• General Controls

1. Verify the authorized person through a trusted and independent source within the Kingdom, including using the biometric verification feature.
2. Specify the account's purpose as owning real estate or acquiring other real rights on real estate in the Kingdom, and do not open more than one remote account, and do not issue debit or credit cards. Related transactions regarding the real estate must be conducted through trusted and approved electronic channels in the Kingdom, for example, the Real Estate Registry platform, the Ijara platform, the Kadaya system, or through a licensed real estate agent in the Kingdom - if available.
3. The bank must periodically verify the validity of the authorized person's identity and the registration of the legal person in the Kingdom, and continuously update the details and information.