Account Opening Rules

Non-Resident Commercial Banks (Including GCC Banks) Correspondent accounts may be opened for non-resident commercial banks (including GCC banks), including correspondent accounts for central banks, in accordance with the following conditions: 1. Approval of the CEO/general director and the manager of compliance department to open the account. 2. SAMA must be informed when the account is opened. 3. Obtaining license documents (except for situations where the correspondent is the central bank itself) issued by the competent foreign licensing authority of the foreign correspondent bank, such as the central bank or the banking control commission in the country of origin. 4. Banks should refuse to enter into or continue a banking relationship with a correspondent bank in a country where it has no physical presence and which is not affiliated with a regulated financial group (e.g. shell banks). 5. Banks should select or approve correspondent banks whose countries apply strong measures to identify customers and cooperate in combating money laundering. These correspondent banks should be under the control of competent authorities. Moreover, it is possible to have an easy access to information related to such banks’ management, main line of business, locations, reputation and the level of control applied by their regulators. 6. Banks shall obtain a completed AML/CFT form from each correspondent bank, stating that such bank is committed to the AML/CFT policies and procedures regarding relations with new banks as well as existing relations. Banks shall also access the correspondent bank’s internal controls to combat these crimes and ensure their adequacy and effectiveness and that the correspondent bank does not allow shell banks to use its accounts. 7. Banks should ensure, through publicly available information and research (such as media), that the correspondent banks, which a bank plans to deal with or continue to deal with, are not subject to any investigation on money laundering or terrorist financing, involved in cases brought against them in this regard, or subject to any legal action. 8. Banks are not allowed to start new relations with any correspondent bank or open a correspondent account without the approval of their senior management. 9. Banks should ensure that operating these accounts is restricted to dealings among correspondent banks only. Such accounts shall not be used or treated as current accounts and no check books should be issued for them. Additionally, they may not be used for cash depositing or by a third party to conduct activities for its own account. 300.2.6 International Investment Companies and Mutual Funds and Other Nonresident Financial Institutions (Including GCC Institutions) Banks may not open any bank account for foreign investment companies, mutual funds or financial institutions, including GCC investment companies and brokers who illegally sell their products in Saudi Arabia and raise funds in Saudi riyals and other foreign currencies. Saudi banks may not facilitate the business of such entities in any way. An exception to this is the cases and categories permitted by the CMA, in which investment in the shares of Saudi joint-stock companies is allowed.