Section 14: Wire Transfer

The financial institution and the intermediary financial institution receiving a wire transfer from outside Saudi Arabia should prepare and implement policies, procedures and controls for the following purpose: a) To identify wire transfers that lack the required information regarding the originator or beneficiary. b) To determine cases of executing, rejecting or suspending a wire transfer due to lack of required information related to the originator or beneficiary based on risks. c) To conduct adequate monitoring based on risks that may include restricting or terminating the business relationship. 14.6 The financial institution receiving a wire transfer from outside Saudi Arabia shall take reasonable measures to identify transfers that lack the required information relating to the originator or beneficiary. These measures may include follow-up procedures after implementation or during implementation, as applicable. In the event of not having the identity of the beneficiary previously verified, the financial institution receiving a wire transfer shall verify the beneficiary’s identity and keep this information as stated under the Record Keeping Section . 14.7 The confidentiality requirements stated under domestic laws do not preclude the financial institution from exchanging information with another local or foreign financial institution that is processing any part of the transaction as required under the Wire Transfer Section. 14.8 The scope of the Wire Transfer Section requirements does not include the following: a) Transfers that result from a transaction carried out using a credit card, debit card, prepaid card, mobile phone, or any other similar digital prepaid or postpaid device only for the purchase of goods or services, provided that the credit or debit or prepaid card number accompanies the transfer resulting from the transaction. b) Transfers that constitute a transfer or settlement between two financial institutions when the originator and the beneficiary are financial institutions acting on their own behalf. 14.9 In the event that the financial institution is unable to comply with the requirements of Paragraph (14.1) , it should not perform the wire transfer. 14.10 The financial institution and the intermediary financial institution should not accept executing a cross-border wire transfer in any currency for charitable purposes 6 regardless of the source of funds or the beneficiary, taking into account what is stated in Paragraph (14.7) . 14.11 The financial institution and the intermediary financial institution receiving wire transfers from outside Saudi Arabia shall not accept these transfers in any currency for charitable purposes, regardless of the source of funds or the beneficiary, taking into account what is mentioned in Paragraph (14.7) . 14.12 Business of the intermediary financial institution providing wire transfer services related to transactions executed through the financial institution, with which it has a contract, should be subject to supervision and control. 14.13 The information exchanged with a correspondent financial institution or an intermediary financial institution providing wire transfer services must only be used for authorized purposes subject to the terms and conditions of confidentiality and should never be used for any other purposes. 14.14 The financial institution and the intermediary financial institution shall not receive a wire transfer from outside Saudi Arabia to a beneficiary in a financial institution abroad if the wire transfer is in a currency other than the Saudi riyal. 14.15 The financial institution may receive a wire transfer from outside Saudi Arabia to a beneficiary in a financial institution abroad only when the wire transfer is in the Saudi riyal currency, taking into consideration what is stated in Paragraphs (14.1) , (14.5) and (14.8) .