SAMA to stop opening online accounts on new security measures

The Saudi Central Bank (SAMA) issued new security measures which give banks the option to stop opening online accounts for individuals or institutions.

The new measures will take effect starting April 10^th, 2022. SAMA said that accounts are to be opened through branches only.

The Saudi Central Bank also sets limits on daily electronic transfers (not to be more than SR60K) and holding the international transfers for 24 hours.

SAMA directed banks to stop allowing non-Saudi customers to add beneficiaries online and instead do it in person.

The new measures include applying more than one criterion in banks to verify identity on the request to establish electronic services, change the password, issue and activate cards, and confirm the request through another channel such as a phone call. Also, SAMA said that applying more multi-factor authentication standards for each money transfer transaction for pre-added customers, and customers must manually enter the temporary password or OTP.

These measures came as a result of fraud increase that has been observed, especially, through impersonation of platforms that sell goods or provide services, with names of official entities, to obtain access data on electronic banking services.

Impersonation, fictitious recruitment, phantom investment, fake web pages or platforms, and internal fraud are among the most prominent bank fraud operations.

Also, there are no procedures to verify that the IBAN and the name of the beneficiary match, SAMA observed, calling banks to present a plan for other measures within five days to be implemented within two months.