Money Transfer Agreement Template for Saudi Arabia

A Money Transfer Agreement is a legally binding contract that establishes the terms and conditions for money transfer services between a licensed provider and its customers in Saudi Arabia. This document ensures compliance with stringent Saudi Arabian banking regulations while protecting both parties' interests in domestic and international money transfer transactions.

When do you need this document?

You need a Money Transfer Agreement whenever you're establishing or formalizing a money transfer service relationship in Saudi Arabia. Banks and licensed financial institutions require this agreement before processing any money transfers for new customers. Remittance companies use it to onboard individual customers sending money abroad to family members or for business purposes. Corporate clients need this agreement when setting up international payment channels for trade transactions or employee salary transfers. Money exchange businesses must have signed agreements with all customers to comply with SAMA licensing requirements. Digital payment platforms operating in the Kingdom also require these agreements for their electronic money transfer services.

Key legal considerations

Your Money Transfer Agreement must include comprehensive customer identification and verification procedures to meet anti-money laundering standards under Royal Decree No. M/20. The contract should clearly define transaction limits, processing timeframes, and fee structures to ensure transparency and consumer protection. You must include provisions for suspicious transaction reporting and record-keeping requirements mandated by SAMA regulations. The agreement should specify security protocols for protecting customer data and preventing fraud, particularly important for electronic transfers. Currency exchange rate disclosure clauses are essential for international transfers, along with clear dispute resolution mechanisms. Your contract must also address service availability, system maintenance schedules, and liability limitations while ensuring consumer rights are protected under Saudi law.

Legal requirements in Saudi Arabia

Under the Banking Control Law (Royal Decree No. M/5), only licensed entities can provide money transfer services in Saudi Arabia, and all customer agreements must comply with SAMA's regulatory framework. The Anti-Money Laundering Law requires your agreement to include customer due diligence procedures, transaction monitoring clauses, and reporting obligations for suspicious activities. SAMA's Rules Governing Money Changing Business mandate specific licensing disclosures and operational guidelines in your contract terms. The E-Commerce Law applies to digital money transfer services, requiring additional security measures and electronic signature provisions. Consumer Protection Law (Royal Decree No. M/75) mandates transparent fee disclosure, clear terms and conditions, and accessible complaint procedures in all customer agreements. Your contract must be available in Arabic and comply with Sharia-compliant banking principles where applicable.