The following terms and phrases, wherever mentioned herein, shall have the meanings assigned thereto unless the context otherwise requires:

• SAMA: Saudi Central Bank

• Rules: Rules Regulating Money Changing Business.

• Money Changing Business: One or more of the activities set forth in Article 11 of the Rules.

• Money Changer: An establishment licensed by SAMA to conduct Money Changing Business in accordance with the provisions of the Rules.

• Customer: Any natural or legal person who benefits from the services of the Money Changer or to whom these services are offered.

• Invested Capital: The capital allocated by the foreign money changer for the use of its licensed branches in the Kingdom.

• License: License issued by SAMA to conduct Money Changing Business.

• Financial Year: The calendar year starting from 1 January and ending on 31 December.

• Third Party: A service provider to whom some work and functions are outsourced. This includes the owners of the service provider, his/her employees and contract employees, as well as the entity affiliated with the Money Changer.

The objective of these Rules is to:

• a. set a regulatory and supervisory framework for conducting Money Changing Business;

• b. determine the permissible activities for Money Changers;

• c. expand the spread of Money Changing Business, facilitate its provision, and enhance financial inclusion;

• d. stimulate innovation, competition and the use of technology in money changing services; and

• e. protect the rights of Customers.

These Rules are applicable to Money Changers licensed in accordance with their provisions.

A- It is prohibited for any natural or legal person to do the following:

• 1- Engage in currency exchange activities in the Kingdom of Saudi Arabia unless they have a valid license issued by the bank in accordance with the provisions of these rules.

• 2- Use the word "currency exchange" or "currency exchange client" or "currency dealer" or any similar expression in any language, whether in their name, commercial title, documents, or advertisements, or any phrase that is synonymous, or use it in any way that suggests they are engaging in currency exchange activities without a license.

B- Notwithstanding the provisions of paragraph (A/1) of this article, hotels, furnished apartments, and licensed tourism offices in the Kingdom are allowed to exchange currencies for their clients only, provided that these currencies are sold to a licensed bank or currency exchange center in the Kingdom and that the provisions of the Anti-Money Laundering Law and its executive regulations are adhered to, and that these transactions are documented and preserved.

First: A claim for a license to conduct currency exchange activities is submitted to the bank, and the following conditions must be met for the issuance of the license:

• A- The currency exchange center must take one of the following forms:

  • 1- Joint Stock Company.

  • 2- Limited Liability Company.

  • 3- Partnership Company.

  • 4- Sole Proprietorship.

  • 5- Branch of a foreign company licensed to conduct currency exchange activities.

• B- Each founding member of the currency exchange center must meet the capacity requirements set by the institution and any specific conditions related to the proposed legal form of the currency exchange center.

• C- Submission of comprehensive detailed information and data, along with any documents specified by the bank regarding the proposed currency exchange center, with the following attached when submitting the claim:

  • 1- A feasibility study including a business plan, organizational structure, and future plan for currency exchange activities.

  • 2- A bank guarantee in favor of the institution that is irrevocable and equivalent to the capital, which will be released upon the bank's decision regarding the claim.

  • 3- The articles of incorporation, the bylaws, and the proposed ownership structure; this applies to company license claims.

Second: The bank may inquire about the claimants by all means it deems appropriate to verify the information provided, and the claimants must provide the bank with the necessary approvals for that.

Third: Upon completion of the procedures and fulfillment of all requirements for the headquarters, the bank shall communicate with the Ministry of Commerce to complete the procedures in accordance with the law.

Upon issuance of the commercial register, the bank shall issue a license to the claimant to conduct currency exchange activities.

The exchange center – at all times – shall be obligated to the following:

A- The capital shall not be less than the following:

• 1- (2,000,000) two million Riyals for the paid-up capital.

• 2- (7,000,000) seven million Riyals for the paid-up capital for centers licensed to engage in the activity of importing and exporting currency.

• 3- (10,000,000) ten million Riyals for the paid-up capital for centers licensed to transfer funds within and outside the Kingdom.

• 4- The invested capital for branches of foreign exchange centers as determined by the bank.

• The institution may amend the capital requirements whenever it deems appropriate.

B- To maintain a cash reserve of no less than (5%) of the capital, and no less than (10%) for centers licensed to engage in the transfer activity. The institution may amend this percentage whenever it deems appropriate, provided that the reserve amount is deposited in one of the licensed banks in the Kingdom to be at the bank's disposal. The center or any other entity is not allowed to act on this reserve in any way except with prior written permission from the bank, and this reserve is subject to the restrictions and instructions issued by the bank.

C- Not to exceed the total value of existing assets by ten times the capital, and the bank may amend this limit whenever it deems necessary.

D- To obtain the prior non-objection of the bank according to the conditions it specifies before offering its shares for public subscription.

A- The duration of the License shall be a maximum of five years, renewable for a similar period, or for another duration specified by the bank.

B- The exchange center must apply for the renewal of the License at least six months before its expiration, in accordance with the requirements set by the bank for the renewal of the License.

C- The exchange center is prohibited from conducting exchange activities if the License has expired without renewal, and if one month has passed since the expiration of the License without the exchange center submitting a renewal application, or if this period passes without fulfilling the renewal requirements; the bank may cancel the License.