JEDDAH, 22 March 2004 — More than 90 percent of bank account holders have so far updated their personal information with their banks. Unless the rest do so within the next 10 days, their accounts will be frozen under Saudi Arabian Monetary Agency (SAMA) regulations.
Visits to banks yesterday showed that there was a last-minute rush of people to update their information, signature and other details.
“In our case, almost 92 percent of our account holders have submitted their ID details,” said Adil Iqbal Sanai, a management executive at the National Commercial Bank.
Under new SAMA regulations introduced last year, which have been widely advertised for several months, each account holder, whether Saudi, expat or registered company, is required to submit copies of their ID (bataqa, iqama or company registration document).
The initial deadline of Dec. 31, 2003 was extended because few customers had complied.
The procedure is simple, an official at Banque Saudi Fransi explained at its Al-Rawdah branch, and making and signing a photocopy of the ID takes less than five minutes — provided the queues are short.
Inquiries at Saudi American Bank, Al-Rajhi Banking for Investment, Riyad Bank, Saudi British Bank, Saudi Hollandi Bank and Saudi Investment Bank reveal that 100 percent compliance is unlikely. Some expats have left the Kingdom without bothering to close their accounts. Others have only a few halalas left in their accounts they are unlikely to close. Companies may have gone belly-up but left their accounts open.
Banks have been sending reminders to their account holders to comply with the SAMA requirement and avoid the freezing of accounts.
“According to our records, your ID or registration validity has expired or is due to expire. In line with SAMA regulations and to avoid freezing of account, you are requested to provide updated documentation to your branch of account at the earliest,” says the typical bank reminder. Such reminders are also flashed on ATM screens.
Rashid Latif, a Pakistani food company executive, said he was not asked to fill out a form. “I went in with a copy of my iqama and passport, but the bank official who I contacted took only my iqama copy and said there was no need for a passport.”
Khalil Ibrahim, a programmer at a computer company, said: “My bank took copies of both my iqama and passport.”
An account holder at the Tahliya branch of SABB said he had to fill out a form and also submit copies of his iqama and passport.
There are apprehensions in the minds of some people who keep getting reminders from their banks. “I don’t know why I still get a reminder each time I receive a statement of account from my bank,” said Jalal Zacarias, an Egyptian executive in a travel agency. “I only hope the information I submitted has been recorded.”
