Introduction of commercial deposit account and related banking services

According to the news of monetary finance, the situation is different regarding “real persons”; in such a way that all deposits of “real persons” are considered “non-commercial”; Unless the “Tax Affairs Organization of the country” declares one or more bank deposits of an individual as “business account” to Central Bank of J.A. Since all business owners must have a “tax file” and “economic number” with the “National Tax Affairs Organization” according to the law, these persons must declare their business account information to the aforementioned organization in the ways explained by the Central Bank.

The most important points and requirements of the “Instructions governing commercial deposit accounts and related banking services” are as follows:
* All bank deposits of “legal entities” are considered “business accounts”;
* The bank deposit of “natural persons” is a “non-commercial account” and only if the deposit is introduced to the “National Tax Affairs Organization” or the “bank” by the customer stating that the deposit is commercial and confirmed by the aforementioned organization, it is considered a “commercial account” ” Becomes. Non-commercialization of commercial deposits of “real persons” is also possible only in the form of the mentioned mechanism;
Banks are only allowed to accept the request for the commercialization of a foreign customer’s deposit account that has one of the valid activity licenses including “employment permit issued by the Ministry of Cooperatives, Labor and Social Welfare” or “foreign investment permit subject to Article 6” of the Foreign Investment Promotion and Support Law. provide In this regard, according to the aforementioned instructions, the current foreign customers of the bank who are introducing their “commercial deposit” have a maximum of one year to obtain the necessary permits and submit them to the bank, and after the aforementioned deadline, the acceptance tools will be allocated. to them, it becomes inactive;
* The bank is not allowed to accept the request of a new partner to join the “joint business account”; Therefore, if the applicants need to extend the partners, they must submit a request to open a new joint deposit to the bank and go through the necessary formalities.

The process of converting the deposits of “natural persons” into “commercial deposits” and vice versa, based on the provisions of the directive on the subject of this report, the mechanism of converting the deposits of “natural persons” into “commercial deposits” and the conversion of “commercial deposits” into “non-commercial” is as follows:
1. Notification of the customer’s request to the “Tax Affairs Organization of the country” or the “bank” regarding whether his deposit is “commercial” or “non-commercial”.
2. Confirmation of the situation by the “Tax Affairs Organization of the country” and “Reflection of the confirmation to the banks through the “Traveler System” by the Central Bank of J.A.
3. Changing the status of the deposit in the relevant systems by the banks after inquiring from the “Tourist System”

Restrictions applied in the instructions of the Central Bank of J.A. regarding banking services related to the business of individuals
In order to complete the process of separating “commercial” from “non-commercial” accounts, Central Bank of J.A. has made arrangements that banking services related to the business of individuals are allocated only to the owners of “commercial accounts” and if individuals intend to use have commercial banking services, they should use their “commercial accounts”; In this connection, the most important restrictions applied are as follows:
• Any provision of banking services to provide foreign exchange related to the import of goods and services depends on the existence of a “business account” in the name of the import applicant, and the transfer of rial funds related to the demand for foreign exchange for the purpose of importing goods and services is also possible only from the business account. ;
• Any granting of Riyal and foreign currency facilities depends on the existence of a “commercial account” in the name of the applicant for the facility and the use of its funds in the commercial deposit. For example, the granting of facilities in the form of “Mudarabah”, “Salaf”, “Debt purchase”, “Civil participation” and the like, as well as “Opening of letters of credit” which are only used in commercial matters, belong only to the owners of “commercial accounts”. Takes. The amount of this facility should only be deposited into the “business account” of individuals or sellers of goods and services; Also, other types of facilities and obligations that are used in both “commercial affairs” and “non-commercial affairs”, if they are offered to individuals for “commercial affairs”, must be subject to the existence of a “commercial account” in the name of the applicant; Unless, at the discretion of the bank’s credit department, granting Riyal facilities in the form of “Qarz Al-Hasna”, “Installment sale”, “Rent with the condition of possession”, “Jaala” and “Murabaha” to the customer, is used for “non-commercial” matters. The above restrictions also apply to “issuance of any guarantee” and “opening of any credit documents”;
• “Acceptance tools” such as point of sale (POS) terminals and payment gateways are allocated solely to “trade deposit” holders.

Incentives provided for commercial deposit holders
In order to facilitate the transactions and commercial exchanges of the “commercial deposit” owners, incentives such as “increasing the limit for the transfer of funds in absentia” (up to 5 billion Rials per day and up to 30 billion Rials per month), “discounts” in the fees of some banking services (up to ceiling of 40%), “reducing the quorum of returning the last checkbook for issuing a new checkbook” (from 80% to 60%), “prioritizing the guarantee of persons with a “business account” as one of the acceptable collaterals for granting micro-facilities” and “Not applying restrictions on the permitted number of opening and maintaining commercial deposits for natural persons” is foreseen; also, banks should demand documents from the mentioned persons only for transfers above the amount of 10 billion Rials.