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• For the purpose of establishing a unified automated database for bank accounts, banks are required to establish an electronic (automated) system in accordance with the classification outlined in Appurtenance (C) and its updates based on the information contained in the approved identities. It should also include the requirements mentioned in the paragraphs below and the detailed requirements in Chapters Three and Four of these regulations, as a basis for opening, operating, and monitoring bank accounts.

  • 1- 1. Natural Persons who are Saudi Citizens:

    • - The bank shall create an electronic record specifically for Saudi citizens that includes, at a minimum, the following data:

      • A. The full name according to the identity document.

      • B. The civil registration number.

      • C. The expiration date of the identity document.

      • D. The national address and contact information.

      • E. The workplace (if applicable).

    • - The information shall be obtained based on the information contained in the national identity document or the family register for minors or the birth certificate for individuals with special circumstances residing in the care facilities affiliated with the Ministry of Human Resources and Social Development, and from reliable sources.

  • 1- 2. Natural Persons who are Citizens of the GCC Countries:

    • - The bank shall create an electronic record specifically for citizens of the GCC countries that includes, at a minimum, the following data:

      • A. The full name as recorded in the national identity document.

      • B. The national identity document number.

      • C. The expiration date of the national identity document.

      • D. The nationality.

      • E. The address and contact information.

      • F. The workplace (if applicable).

    • - The information shall be obtained based on the information contained in the national identity document, and from reliable sources.

  • 1- 3. Natural Persons who are Non-Saudis:

    • - The bank shall create an electronic record specifically for non-Saudi resident natural persons that includes, at a minimum, the following data:

      • A. The full name as recorded in the passport or residence document, in the same language as written in the passport or residence document according to the priority of language (Arabic - English - Latin letters). If it is in a language or script other than mentioned, the name shall be recorded as stated in the visa granted by the Saudi embassies and consulates issuing the entry visa.

      • B. The nationality.

      • C. The residence ID number and its validity date.

      • D. The national address and contact information.

      • E. The workplace (if applicable).

    • - For those holding five-year residence cards issued to certain members of tribes, the name as stated on the card shall be recorded in full along with its number and validity date.

    • - Expatriates holding Saudi passports are not allowed to open bank accounts under those passports except with the approval of the Ministry of Interior through the Central Bank.

  • 1- 4. Legal Persons:

    • - The bank shall create an electronic record specifically for legal persons that includes, at a minimum, the following data:

      • A. The full official name of the legal person according to official documents.

      • B. The commercial registration number, or the license if the activity does not require a commercial registration (if the account is for the main commercial registration, the main commercial registration shall be recorded; if the purpose is for a branch of the commercial registration, the branch commercial registration number shall be recorded, ensuring that the electronic record for the branch commercial registration is linked to the main commercial registration).

      • C. The ID numbers of the owners - whose names are mentioned in the articles of incorporation according to the latest amendments - authorized to manage the accounts (owners in listed joint-stock companies are exempt from recording their ID numbers).

      • D. The signature model for the authorized person managing the account.

      • E. The national address of the legal person.

      • F. The tax number (if applicable).

      • G. The legal entity identifier number (if applicable).

    • - For accounts opened based on approvals or official requests, the reference number, date, and name of the issuing authority of that approval or request must be recorded.

• Banks are required to provide an automated search system to conduct routine searches within the banks according to the information required in the electronic record for each category, ensuring that the search process covers all transactions, relationships, and all products and services offered to clients, in addition to urgent transfers and investment deposits.

• These are the accounts, relationships, and transactions that have completed two Gregorian years from the date of the last financial transaction executed by the client themselves, their authorized agent, or their heirs. They are divided into three stages as detailed in this Rule. This Rule aims to monitor the work to keep the transactions active and preserve the assets (funds) of clients on which no financial transaction (withdrawal or deposit according to the nature of the relationship) has been executed by the clients themselves, recorded or through documented correspondence within the time periods specified in item (5-2). It also aims to communicate with clients and to return rights to their owners upon their request immediately after fulfilling the necessary documents, papers, and procedures, and to reclassify them to abandoned accounts when it is impossible to ascertain the existence of their owners and all means of communication with them have been exhausted. Accounts of government entities are excluded from the provisions of this Rule concerning the stage of abandoned accounts only as specified in paragraph (5-2-4). Additionally, accounts of statutory reserves deposited by financial institutions under the supervision and control of the central bank, which cannot be accessed without prior written permission from the central bank, are fully exempt from the provisions of this Rule.

• 5-1. Transactions Subject to the Rule:

• This Rule applies to all assets, bank accounts, relationships, operations, and similar cash and in-kind transactions of natural and legal persons deposited in banks operating in the Kingdom, including the following:

  • First: Current credit accounts and savings accounts on which no financial transaction (withdrawal or deposit) has been executed by the client themselves, their authorized agent, or their heirs.

  • Second: Investment deposits that have not been reviewed by their owners after the agreed-upon period, which are automatically renewed, and the bank has not reached their owners.

  • Third: Bank remittances (Fast, Swift, and remittance memberships and similar) that have not been settled, deducted, or received since their creation.

  • Fourth: Shares, bonds, and real estate certificates mortgaged to banks in exchange for banking facilities, for which their owners have settled their debts and have not reviewed the banks thereafter to reclaim ownership.

  • Fifth: Safe deposit boxes rented by the bank to clients for which contracts have not been renewed since the last visit by the client, and the bank has not been able to ascertain the existence of their owners either through direct contact or through correspondence or through the existence of other accounts and information they have with the bank, provided that the central bank's instructions regarding safe deposit boxes are observed.

  • Sixth: Amounts and profits due to clients from their investments in various types of investment vehicles managed (or previously managed) or held by the bank on behalf of clients, which have reached the end of their investment period and have not been paid to their owners due to their failure to review the bank to collect them or the absence of active accounts to add them to, and the inability to ascertain their existence or any information about them after corresponding and notifying them.

  • Seventh: Prepaid service accounts, provided they do not conflict with prepaid service rules.

  • Eighth: Credit amounts in credit cards deposited by clients in excess of the utilized amount and not claimed by them.

  • Ninth: Accounts for settling leasing transactions.

  • Tenth: Amounts reserved for guarantees and documentary credits from the date of their expiration.

  • Eleventh: Other amounts for clients at the bank or receivables other than those mentioned above that have not been paid to their owners due to the inability to ascertain their existence.

• 5-2. Classification of Periods, Time Frames, and Processing Requirements for Dormant Banking Transactions:

  • 5-2-1. Active Accounts:

    • Transactions are considered active if no more than twenty-four months have passed since the last financial transaction (withdrawal or deposit according to the nature of the relationship) executed by the client themselves, their authorized agent, or their heirs, recorded or through reliable and documented correspondence.

  • 5-2-2. Dormant Accounts:

    • Transactions are considered dormant if twenty-four months have elapsed from the date of the last financial transaction (withdrawal or deposit according to the nature of the relationship) executed by the client themselves, their authorized agent, or their heirs, recorded or through reliable and documented correspondence.

  • Processing Requirements for Dormant Accounts:

    • - Reactivation of dormant accounts is subject to dual control with higher authority, one of which must include the branch manager or the branch operations manager.

    • - No withdrawal or transfer transactions on the dormant account are allowed except in the presence of the client (natural person) in person or the legal agent specified in their agency to deal with the client's bank accounts or the agent of their heirs or the authorized person for the account if it is a corporate account. An exception allows the acceptance of a fax or documented and approved email in the bank's records or the execution of financial transactions on the account using one of the electronic channels such as the internet and phone banking as an alternative to the client's presence, while confirming the client's awareness of the account's status and the nature of the executed transaction.

    • - During the dormant account period, deposits of all types, local and international transfers, dividends, and others made by a person other than the account owner are allowed, but these transactions do not change the account's status to active.

    • - This stage applies to all clients and transactions, including clients with other active accounts, where the bank is required to inform the client of the action that will be taken on their account before it reaches five years if they have other active accounts, and request them to perform a transaction to ensure the account is activated. If the account is not activated within the specified period, the requirements for unclaimed accounts will apply.

  •  5-2-3. Unclaimed Accounts:

    • Transactions are considered unclaimed if five years (sixty months) have elapsed, including the dormant account stage, from the date of the last financial transaction (withdrawal or deposit according to the nature of the relationship) executed by the client themselves, their authorized agent, or their heirs, recorded or through reliable and documented correspondence, and the bank has been unable to ascertain the client and has exhausted all means of communication with them.

    • Processing Requirements for Unclaimed Accounts:

      • - The bank must transfer the balance within the month following the five-year period to a suspense account at the bank specifically for these transactions called "unclaimed accounts."

      • - These accounts must be classified in a suspense account, making it easier to manage each entity according to different communication policies and procedures and oversight aspects.

      • - During the unclaimed account period, the acceptance of deposits, local and international transfers, and dividends made by someone other than the account owner is allowed.

      • - The bank must block the client's signature and balance from branch screens permanently during this stage, and limit oversight of these accounts to the general management (head office).

      • - If the client reviews the bank to reactivate the account or withdraw the balance, they are given the option to open a new account and transfer the existing balance in the bank's records to it, or to receive the balance via a bank check or bank transfer after verifying the identity of the client or their legal agent or the agent of their heirs or the authorized person for managing and operating the account (as applicable).

      • - The bank must establish policies and procedures that ensure dual oversight on the files of these accounts at a higher oversight level than that applied to other files, and they must be stored separately from other files, and necessary security measures must be provided to protect them from preservation risks.

      • Balances of these accounts are kept as a liability in the financial position, and any action by the bank on the account balances is prohibited regardless of the minimum balance and subsequent period and account type.

      • - It must be verified that there are no outstanding liabilities owed to the bank by the account owners, in which case existing liabilities are deducted before transferring to the suspense account.

      • - The bank may close customer accounts with balances of 1,000 Riyals or less, provided that the client is notified one month before the closure date and notified upon closure, documenting the notifications and keeping them in their file, and the bank must retain all data of these clients and the amounts of their balances in the suspense account to deliver them upon their review of the bank.

  • 5-2-4. Abandoned Accounts with Missing Owners at the Bank:

    • Transactions are considered abandoned and their owner missing from the bank if the time periods and stages specified in this paragraph have been completed from the date they were classified as unclaimed accounts, and banks have definitively been unable to ascertain the existence of the account owner through their account movements or other transactions with the bank, and all means of communication with them have been exhausted according to the specified communication policies and procedures in the rules. The following clarifies the time periods and stages for these accounts:

      • - A period of ten Gregorian years unclaimed (i.e., a total of fifteen Gregorian years from the date of the last transaction) for current credit accounts, savings accounts, investment deposits, balances of deceased persons, and credit amounts in credit cards.

      • - A period of five years unclaimed (i.e., a total of ten Gregorian years from the date of the last transaction) concerning bank remittances, safe deposit boxes, retained shareholder profits, and unpaid amounts and profits due to clients from their investments, shares, bonds, and real estate certificates mortgaged to the bank in exchange for banking facilities for which their owners have settled their debts and have not reviewed the banks thereafter to reclaim ownership, amounts reserved for guarantees and documentary credits from the date of their expiration, leasing transaction settlement accounts, prepaid service accounts, and other amounts for clients at the bank or receivables.

    • Processing Requirements for Abandoned Accounts with Missing Owners at the Bank:

      • - Banks must reclassify the accounts within the month following the specified periods for these accounts to abandoned accounts with missing owners at the bank.

      • - These accounts must be under the direct supervision of an authorized official in the bank's senior management.

• 5-3. General Requirements:

• Regarding dormant banking transactions, the following must be adhered to:

  • A. Continue to calculate commissions and account profits as agreed or according to prevailing market rates.

  • B. Review and classify accounts and take the actions stipulated in the rules regarding them according to the specified time periods for each.

  • C. Retain copies of documents and records for all amounts and receivables for the legally required retention period.

  • D. Maintain detailed records of accounts containing at least the following data:

    • - The client's full name as recorded in the identity document.

    • - The client's ID number as available in the bank's records.

    • - The amount of due assets and the time periods to which they belong.

    • - The nature of the due assets for clients (current accounts, investment deposits, remittances, etc.).

    • - The client's national address and place of residence and contact phone numbers (if available).

    • - The bank account number or relationship number or serial number in the safe deposit records (if available).

    • - Ownership certificate numbers if available or relevant.

    • - Any other data related to the client when found or deemed necessary.

  • E. Retain personal and financial data in electronic records according to the technical specifications determined by the central bank to facilitate future access. A copy of this data must be provided to the central bank.

  • F. Include texts in contracts, agreements, and account opening forms signed by clients, and account statements sent to clients mentioning the periods and procedures for freezing accounts and other amounts mentioned in these rules.

  • G. The role of the compliance department in all the mentioned stages and periods is supervisory to ensure compliance with the requirements of those accounts, and rights are restored through the bank's operations management.

• 5-4. Policy and Procedures for Communicating with Clients of Dormant Banking Transactions:

  • 5-4-1. Implementing Communication Policy Procedures with Clients through Client Classification Based on Legal Nature - at a Minimum - as Follows:

    • - Transactions of resident natural persons, including Saudis and citizens of GCC countries residing in the Kingdom and expatriates residing and politically identified.

    • - Transactions of non-resident natural persons, including Saudis and citizens of GCC countries not residing in the Kingdom and foreigners not residing in the Kingdom, including those who left the Kingdom and left balances in accounts.

    • - Transactions of resident legal persons.

    • - Transactions of non-resident legal persons.

    • - Commercial banks, including international accounts.

    • - Correspondent banks.

    • - Accounts of government entities.

  • 5-4-2 Means of Communication and Identification:

  • Banks must communicate with clients and attempt to identify them (without disclosing financial data) during all the mentioned time periods using all possible legal means, including but not limited to the following:

    • - SMS messages.

    • - Email messages.

    • - Phone calls to available contact numbers.

    • - Official letters from the bank by mail to clients inside and outside the Kingdom.

    • - Field visits to clients by relationship officials in banks.

    • - Messages in bank statements indicating the account status and what is required from the client.

    • - Public search tools and available official information centers that enable reaching the client to verify new contact numbers not available to banks or indicating the existence of clients alive or their departure abroad or the end of commercial and financial activity.

    • - Publishing awareness advertisements in media explaining related regulations and what is required from clients with dormant accounts and clarifying procedures for searching for balances.

    • - Writing to the relevant official authorities for inquiries.

    • - The bank's communication with clients and use of the aforementioned means during the different stages of dormant banking transactions clarifies procedures for searching for balances. The bank's communication with clients and use of the aforementioned means during the different stages of dormant banking transactions should occur at intermittent time intervals, with a minimum of two communications in each stage. If there is no response from clients or if they cannot be identified or contacted, the bank may cease communication with clients after one year from each stage, ensuring that communication methods with clients are documented.

  • 5-4-3. Work Unit in Banks for Communicating with Clients:

    • The bank must provide a work unit (established or officially designated) responsible for implementing the communication policy in a manner that achieves maximum effectiveness. Its work must include communication procedures, responsibilities, documentation, periodic communication reports, and results of efforts made.

  • 5-4-4. Stages and Steps for Implementing the Policy and Procedures for Communicating with Clients of Dormant Banking Transactions:

  •   Banks must adhere to the following when communicating with clients according to each stage:

    • A. Dormant Accounts:

    • - Clients are to be contacted through appropriate communication means to inform them of the status of their accounts and what is required of them, and the action the bank will take if clients do not comply, including converting the account to unclaimed.

    • - Officially writing to government entities and NGOs one year before converting the classification from dormant to unclaimed (without prejudice to what is stated in paragraph (4-2)) to inform the entity of what will result if no transactions are made on the account.

    • - Officially writing to embassies, consulates, and their affiliated educational institutions and resident diplomats one year before converting the classification from dormant to unclaimed to inform the entity of what will result if no transactions are made on the account.

  • B. Unclaimed Accounts:

    • - A bank check is issued for the balance of unclaimed government accounts payable to the Ministry of Finance's account at the central bank, and the check is sent to the central bank by official letter, with a copy sent to the government entity and a second copy to the Ministry of Finance's Financial Affairs and Accounts Agency.

    • - Communication with clients continues through appropriate means according to the results of communication in the previous stage to inform them of the status of unclaimed accounts and clarify to clients that they are required to contact the bank to collect the amounts and open new alternative accounts.

    • - A bank check is issued for the balance of embassy and consulate accounts and their affiliated educational institutions and delivered to them with documentation.

  • C. Abandoned Accounts with Missing Owners at the Bank:

    • - Continue to communicate with clients through appropriate means according to the results of communication in previous stages to inform them of the status of abandoned accounts with missing owners.

• 5-5. Oversight and Internal Audit Reports:

  • Accounts in the unclaimed accounts stage and the abandoned accounts with missing owners stage are subject to internal audit every two years at most, and the report is submitted to the audit committee, ensuring that the annual audit program is not linked to any other periodic programs related to the accounts.

• 5-6. Annual Statistical Reports Required by the Central Bank:

  • A statement must be submitted at the end of March each year to the central bank according to the schedule provided to the bank by the central bank, including an exclusive listing of unclaimed accounts and abandoned accounts with missing owners at the bank, according to the nature and category of the accounts and account numbers, without mentioning personal information, as they are at the end of December of the previous year.

• - Banks must fully comply with the principle of "Know Your Customer" (KYC), with the primary objective being that the bank, before establishing a business relationship or opening an account, or during such relationship, or before executing a transaction for a client with whom it does not have a business relationship, has a complete understanding and full perception of the nature of the client, the nature of their activities, and their transactions, through assessing the extent to which the client may pose risks to the bank or the initiation of the relationship.

• - Banks shall establish and define the necessary procedures regarding the application of the "Know Your Customer" principle in accordance with the relative importance and degree of risk assessment by the bank, as well as reviewing and updating them.

• - The bank should not overlook the personal aspects of the employee, which are refined by experience and training, as these can assist in determining and assessing the level of risk for the client.

• - These rules should be read in conjunction with the requirements set forth in the Anti-Money Laundering Law and its Executive Regulations, the Anti-Terrorism and Financing of Terrorism Law, and the guidelines issued under them.

• - The Compliance Department must have the authority and right to timely access customer identification data and other due diligence information regarding clients, transaction records, and other relevant data.

• Banks must verify the nature of the relationship of guardians, agents, trustees, and authorized persons (natural persons) when opening accounts, and ensure the validity of the submitted documents.

• - Without prejudice to what is stated in the Anti-Money Laundering Law and its Executive Regulations, and the Anti-Terrorism Crimes and Financing Law and its Executive Regulations, the guidelines issued under them should ensure that the bank has appropriate systems that enable it to monitor the client's operations and activities and identify any suspicious behavior or behavior that does not align with the expected or usual approach of the client, and that manual monitoring of operations is not sufficient. The bank should invest in electronic systems - according to the best standards in monitoring, information security, and protection - to continuously monitor client operations.

• - The bank must continuously assess the existing internal controls on a risk-based approach, in order to benefit from the unusual activities that have been discovered.

• - The electronic systems used should be commensurate with the nature of the bank's risk profile, and the monitoring system should be integrated with the bank's core systems. In the event of a mismatch between the two systems due to the merger, the bank must be prepared and have the necessary precautions and manual procedures to address and develop the mismatch.

• - If the bank suspects that bank accounts are being used in an irregular manner or it becomes clear that the sources of the deposited funds are derived from illegal activities, it must notify the General Directorate of Financial Investigations.