With reference to the Law of the General Authority for Awqaf issued by Royal Decree No. (M/11) dated 26/2/1437 AH, which stipulated in Article Three that "The Authority aims to regulate endowments, preserve them, develop them, and grow them; in a manner that fulfills the conditions of their founders and enhances their role in economic, social development, and social solidarity, in accordance with the objectives of Islamic Sharia and the regulations," and what was stipulated in Article Four that "The Authority supervises all public, private (capacity), and joint endowments." And with reference to the Council of Ministers Decision No. (42) dated 15/1/1440 AH, which includes approval of the national strategic objectives for combating money laundering and terrorism financing and the national action plan to achieve those objectives.

Which help in reducing the risks of money laundering and terrorism financing in the Kingdom of Saudi Arabia, including the seventh strategic objective "Enhancing the knowledge of the ultimate beneficiary" by taking measures to enhance transparency in the endowment sector.

With reference tothe Regulation of the Trusteeship Workissued by the Authority's Board of Directors Decision No. (43/18/1/31) dated 30/5/1443 AH.

And according to international guidelines including the recommendations of the Financial Action Task Force (FATF), especially Recommendation No. (25) concerning "Transparency and Beneficial Owners of Legal Arrangements." In addition to the "Transparency and Beneficial Owners of Legal Arrangements" guide issued by the Financial Action Task Force (FATF) in March 2024.

Accordingly; the Authority has issued the Beneficial Owner Standards for Endowments.

A. The terms and phrases mentioned in these standards refer to the definitions established in Article (One) of the Law of the General Authority for Awqaf, issued by Royal Decree No. (M/11) dated 26/2/1437 AH, and the definitions set forth in Article (One) of the Anti-Money Laundering Law issued by Royal Decree No. (M/20) dated 5/2/1439 AH, and the definitions contained in Article (One) of the Regulation Organizing the Trustee’s Work issued by Board of Directors Decision No. (43/18/1/31) dated 30/5/1443 AH, unless the context requires otherwise.

B. The terms and phrases specifically defined in these standards refer to the definitions stated before each of them, unless the context requires otherwise:

• Authority: The General Authority for Awqaf.

• Regulation: Regulation Organizing the Trustee’s Work.

• Standards: Standards for Identifying the Ultimate Beneficiary of Awqaf.

• Beneficiary: The natural or legal person - or persons - who is entitled or may be entitled to benefit directly or indirectly from the endowment, according to the condition of the endower.

• Ultimate Beneficiary: The natural person who owns or exercises actual and ultimate control over the endowment.

• Control: The effective and actual ability to make decisions, impose them, or exercise influence.

The standards aim to achieve the following:

• 1. Raising the level of transparency in endowments in the Kingdom.

• 2. Guiding supervisors on practices to identify the beneficial owner of the endowment.

• 3. Ensuring compliance with international and local requirements.

• 4. Preventing the exploitation of endowments in money laundering or terrorism financing crimes.

• 5. Providing sufficient and accurate information in a timely manner about the beneficial owner and beneficiary of endowments in the Kingdom.

These standards apply to endowments subject to the supervision of the Authority, and to foreign endowment trustees whose management is undertaken by a resident trustee within the Kingdom.

1. Every natural person is considered a beneficial owner of the endowment if they are any of the following:

• A. The endower who exercises actual and ultimate control over the endowment.

• B. The supervisor.

• C. Any other natural person who exercises actual and ultimate control over the endowment.

• D. Every beneficiary who can be identified or falls within a specific category according to the endower's condition.

2. If the endower or supervisor is a legal person, the owner of the legal person, its director, or members of its board of directors - as applicable - are considered the beneficial owners.

1. The trustees must obtain sufficient, accurate, and updated information about the endowment and every ultimate beneficiary and retain it, provided that it includes at least the following data:

• A- The full name of the ultimate beneficiary, nationality, date and place of birth, residential address, contact information, and the identity document number and type.

• B- The date of acquiring the status of the ultimate beneficiary.

• C- The banking details of the ultimate beneficiary through which the endowment's proceeds are received.

• D- The nature of the relationship between the ultimate beneficiary and the endowment.

• E- The amount the ultimate beneficiary is entitled to from the endowment.

2. If the ultimate beneficiary in the endowment is a legal entity, the trustee is obligated to obtain the information stipulated in paragraph (1) of this article and retain it for every natural person considered an ultimate beneficiary as stipulated in paragraph (2) of Article (4), and to record the following data of the legal entity:

• A- The name of the legal entity and its legal form.

• B- The national address.

• C- The list of directors with their full names, dates and places of birth, and nationalities.

• D- The powers granted to the legal entity.

3. The trustee is obligated to obtain accurate information and retain it for every professional service provider to the endowment, provided that this information includes the following:

• A- The name of the legal entity and its legal form.

• B- The national address.

• C- The list of directors with their full names, dates and places of birth, and nationalities.

• D- The powers granted to the legal entity.

4. The trustee must keep accurate records, reference numbers, and a historical classification of payments disbursed to the beneficiary.

5. The trustee is obligated— in cases where the endowment has no known beneficiaries at its establishment— to obtain accurate and reliable information about the category of beneficiaries, their characteristics, and the objectives of the authority, retain it, and verify it before any disbursement from the endowment's proceeds to the beneficiary, in accordance with paragraph (1) of this article.

1. The supervisor shall verify the accuracy of the information referred to in Article (Five) annually, by referring to the endowment deed, the registration certificate, and all official documents related to the endowment, and update the records within a period not exceeding (15) days upon any change occurring thereto.

2. The supervisor is obligated to provide the Authority with all data and information stipulated in Article (Five), in addition to any details concerning the nature of the endowment assets, their location, and size, provided that this is done annually, or upon the Authority's request, and after any change that may occur thereto.

3. When verifying the data of the beneficial owner, the level of risks and the material significance represented by the owner shall be taken into account, in order to determine the scope and rigor of the verification procedures that the supervisor must apply.

4. The beneficiary shall provide the supervisor, upon his request or voluntarily, with any relevant information to ensure the accuracy and updating of the beneficiary's information.

1. The supervisor must do the following:

• A. Declare the beneficial owner's information of financial institutions or specified non-financial businesses and professions upon request.

• B. Declare his status - as a supervisor - to financial institutions or specified non-financial businesses and professions when dealing with them on behalf of the endowment.

• C. Provide financial institutions and specified non-financial businesses and professions with the necessary information regarding any assets belonging to the endowment that are managed or held by those institutions or businesses and professions within the scope of the working relationship.

• D. Provide the Authority and competent authorities with the information stipulated in Article (5) related to endowments or their concerned parties.

2. The Authority is obligated to provide all beneficial owner information to the competent authorities upon request.

3. The supervisor must keep a copy of the information specified in Article (5) of these standards for no less than ten years.

4. The supervisor must, after the end of his supervision, immediately hand over the original documents to the new supervisor.

5. The endowment deed and the endowment registration certificate are the primary sources of information related to the parties of the endowment, and some information may be included in other documents such as the supervision deed or judicial rulings issued concerning the parties of the endowment.

1. The management of the endowment is not permitted through non-Saudi individuals permanently residing outside the Kingdom, and the supervision of the endowment shall be conducted only by supervisors residing in the Kingdom.

2. Endowments may apply additional standards according to the nature of the endowment, its size, the type and nature of its disbursements, and the type of beneficiaries, categories of beneficiaries, or the actual beneficiaries thereof.

The penalties stipulated in the Schedule of Penalties and Violations of the regulations issued by the Authority's Board of Directors under No. (46/34/1/100) dated 5/6/1446 AH shall apply.