The Saudi Arabian Monetary Authority (SAMA) - the Central Bank of Saudi Arabia – has imposed capital and technical restrictions on money exchange offices in the kingdom.
SAMA announced a draft of updated regulations for exercising exchange operations in the kingdom in which it insisted that the paid-in capital must not be less than SAR2 million (USD533k) except for centers licensed to export and import cash.
The capital shouldn’t be less than SAR7 million (USD1.8 million) while the centers licensed to transfer cash inside Saudi Arabia and abroad should have a capital that exceeds SAR10 million (USD2.6 million).
SAMA stressed that a monetary reserve is essential, no less than 5 percent of the capital and 10 percent of the centers licensed to transfer cash. SAMA will further cash in 0.25 percent fees out of the headquarters and branches' capital.
Technical requirements included covering all infrastructure units of the exchange offices in a way that guarantees direct connection among branches. Also, additional measures should be taken to reduce technical risks in addition to showcasing lists of currency rates and consumer protection info.
SAMA noted that this step originates from its keenness to go in tandem with the latest updates in the financial services sector, and in its quest for achieving its goals in developing the exchange sector. It also stems from the institution’s supervisory role to ensure that the sector copes with the economic development witnessed by Saudi Arabia.
