Wary expats withdraw bank funds ahead of iqama renewal

As the iqama renewal period approaches, the most common
practice for expatriate workers is to withdraw all their funds.
Many have said that the process is easy or difficult
depending on the company or the sponsor.
Previously, the National Society for Human Rights had to
step in to help expatriates who had their bank accounts frozen for various
reasons and were in dire need of financial aid due to their commitments in
their home countries.
“When your iqama expires, your bank accounts are
automatically frozen. If you’re lucky enough to have your papers complete, the
iqama renewal process can take a minimum of two days, but most are not. Once
your iqama is renewed, it can take up to two to three days to have your account
activated again. Even though they say it takes 24 hours, in reality it takes
longer,” said M. Ahmad, a 50-year-old Pakistani national currently working in
the construction industry.
“I don’t understand the purpose of freezing bank accounts.
The government has all of our official documents and we are working in the
Kingdom legally. Where and why would we run off?
“If our accounts are frozen and our salaries are still being
deposited, then why is the bank accepting any transactions? That money is
rightfully mine, yet I can’t access it!” he added.
Khaled, a 40-year-old Indian national working for a private
company in Jeddah, has ongoing issues with renewing his iqama.
“Prior to the expiration of my iqama, I talked to my company
about renewing it. They waved me away and said they would take care of it when
they renew all of the other employees’ iqamas,” he said.
“Just to be on the safe side, I withdrew all of my money
from the bank. It so happened that my company sent my iqama for renewal a month
after its expiration date. It’s been two months and I’m still waiting.”
An added complication in Khaled’s case was the change of
profession on his iqama.
On the other hand, Amir’s bank account was frozen a week
before his iqama was due to expire. Amir is a Tunisian national working for a
travel agency.
“I went and talked to the manager at the bank and he said
that he could do nothing about it. He asked me to bring the renewed copy of my
iqama,” he said.
“After that incident, I renewed my iqama a month before it
was due to expire and withdrew cash just in case.”
The different situations in all these cases can be
attributed to the different regulations that govern banks.
“Different banks have different regulations. At our bank, we
freeze the account as soon as the iqama expires. The customer has to bring the
renewed iqama and we activate it the same day, and no fee is charged,” Reham,
an employee at a local bank in Jeddah, told Arab News.
“Some banks freeze your account as soon as the iqama expires
and sometimes a grace period is given. It all depends on the bank and its
regulations.”
Asked why bank accounts are frozen, she said, “This is not
us, this is an order from the government, more specifically the Saudi Arabian
Monitory Agency.”
A source at another bank said: “When the iqama expires, we
provide our customers with a grace period of one month. Before that, we send
you a message on your phone and when you use your ATM.”