Saudi: Banks banned from opening accounts for illegal entities
The Saudi Central Bank (SAMA) has banned Saudi local banks from allowing the opening of accounts by entities that are involved in illegal operations. The Central Bank also instructed that banks shall notify customers about freezing of their accounts at least 30 days before the date of freezing.
The rules prohibit banks from opening bank accounts for investment companies, investment funds, foreign financial institutions, including investment companies in the Gulf countries or their intermediaries that sell their products illegally in the Kingdom and collect money in Saudi riyals and foreign currencies.
These rules are contained in the updated Bank Account Rules that are mandatory and to be enforced by the Saudi banks effective from February 2.
