Country Manual Private Banking
Saudi Arabia – Update 2024
BRP has updated its Country Manual Private Banking for Saudi Arabia out of Bank’s Country of Establishment (DEF, RS, BT & RT)
| Source of changes | Answers |
|---|---|
| Law / Regulation | Yes |
| New Position of the Authorities | No |
| Evolution of Expert’s Interpretation | No |
Regulatory Template, Regulatory Summary and Behaviour Template
Material changes
The Country Manual has been reviewed to ensure that the content of all documents remains accurate and up to date. There have not been any major changes to banking or securities law, but other areas have been subject to change and the answers in the Regulatory Template have been refined and adapted.
The authorities have introduced new Implementing Regulations for the Law of Payments and Payment Services. In relation to template sections covering:
Negotiation of banking services;
Debit cards;
Credit cards.
There is now wording to the effect that a Bank should not hold itself out as providing payment services in Saudi Arabia and that a Bank should only open bank accounts which offer payment facilities following reverse solicitation by a prospect via remote means of communication from Saudi Arabia.
Following implementation of new Implementing Regulations and Data Transfer Regulations under the Personal Data Protection Law (PDPL), there is additional wording explaining the restrictions on data transfer in the template section on Collecting Relevant Supporting Documents and Information. Data transfers out of the KSA are prohibited except in the following circumstances:
If the transfer is in implementation of an obligation under which the KSA is a party;
To serve the interests of the KSA; or
For the performance of an obligation to which the data subject is a party;
If conducting processing operations enables the controller to carry out its activities, including central management operations;
If transfer results in providing a service or benefit to the personal data subject.
However, the above is predicated upon complying with the following conditions:
The transfer or disclosure does not prejudice national security or the vital interests of the KSA;
There is an adequate level of protection for personal data outside the KSA (such level of protection shall be at least equivalent to the level of protection guaranteed by the PDPL and the Implementing Regulations, according to the results of an assessment conducted by the regulatory authority.
The E-banking Rules previously issued by SAMA are no longer in effect and references to these rules throughout the template have been deleted. There is now a SAMA Cyber Security framework that applies to locally regulated banks and sets out the standards expected.
In relation to Consumer Protection in Saudi Arabia the answers have been revised to clarify that local consumer protection rules may apply.
Non-material changes
The wording on what is a permanent establishment for tax purposes has been revised and expanded.
Implications for business relations with third parties
The answers in relation to third parties are presented using a revised format.
There is more detail in the sections covering provisions of securities related services to an EAM itself to explain the conditions that apply in relation to tolerated practice under reverse solicitation by a Capital Market Institution.
Regulatory Summary
This document has now a more user-friendly layout and reflects the changes contained in the RT.
BT Short Comparison
BRP has created a comparison document allowing users to quickly identify the modifications made compared to the previous version of the PB Manual (BT Short Comparison). The BT Short Comparison can be found on BRP’s platform (mybrponline) in the Search tab by entering in the Document Field “CM PB BT SHORT COMP” and “SAUDI ARABIA” in the Target Country Field.
The BT Short Comparison should be read as follows:
The first column contains a short description of the activity in question. The second column contains the answers of the previous version of the Country Manual (online until the day of the alert). The third column contains the new answers of the most recent version of the Country Manual. Only the modified answers are displayed (in colour). If the answers in the new version are unchanged compared to the previous version, they are shaded in grey.
For more information, please contact us: info@brpsa.com
Geneva, September 3rd, 2024