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An Account Agreement forms the legal foundation between a Saudi bank and its customer, spelling out how both parties will handle financial services and transactions. It covers everything from basic account operations and fees to digital banking access and Shariah-compliant features required under Kingdom regulations.

These agreements protect both sides by clearly stating rights, responsibilities, and dispute resolution procedures aligned with SAMA (Saudi Central Bank) guidelines. They're especially important for businesses, as they establish terms for commercial accounts, credit facilities, and electronic payment services while ensuring compliance with Saudi banking laws and Islamic finance principles.

A Saudi bank needs an Account Agreement in place before opening any new customer account, from basic savings to complex corporate services. This agreement becomes essential when launching new banking products, introducing digital banking features, or expanding services to include investment accounts or financing facilities.

The timing is particularly critical when onboarding commercial clients, offering Shariah-compliant products, or establishing international banking relationships. Banks must update these agreements when SAMA introduces new regulations, when adding features like mobile banking, or when modifying fee structures. Getting the agreement right from the start prevents disputes and ensures smooth banking operations.

• Deposit Account Agreement: Basic agreement for savings and current accounts, covering standard banking services and Shariah-compliant features
• Account Pledge Agreement: Used when accounts serve as collateral for financing arrangements or business guarantees
• Letter of Authorization To Debit Account: Enables automatic payments and recurring transactions
• Accounts Receivable Assignment Agreement: For businesses transferring receivables to banks for financing
• Bookkeeping Contract: Supplements main agreement with detailed record-keeping terms for business accounts

• Saudi Banks: Draft and maintain Account Agreements, ensure Shariah compliance, and handle customer onboarding and account management
• Corporate Clients: Review and sign agreements for business accounts, trade finance, and electronic banking services
• Individual Customers: Accept terms for personal accounts, digital banking access, and financial services
• SAMA Regulators: Oversee agreement compliance with banking regulations and Islamic finance principles
• Legal Departments: Review and update agreements to reflect new regulations and banking products
• Shariah Boards: Verify Islamic compliance of account features and banking practices outlined in agreements

• Account Details: Gather specific account types, features, and Shariah-compliant services to be included
• Client Information: Collect complete KYC documentation, tax ID numbers, and business registration details
• Service Scope: List all banking services, digital features, and transaction limits for the account
• Fee Structure: Document all applicable charges, maintenance fees, and transaction costs
• SAMA Requirements: Review current banking regulations and compliance requirements
• Islamic Banking: Ensure all terms align with Shariah principles and approved banking practices
• Digital Access: Define online banking features, security protocols, and access levels

• Account Identification: Full details of account type, holder information, and unique identifiers
• Shariah Compliance: Clear statements on Islamic banking principles and prohibited transactions
• Service Terms: Detailed description of banking services, limits, and operational procedures
• Fee Schedule: Comprehensive listing of all charges, commissions, and profit-sharing arrangements
• Digital Banking: Terms for electronic services, security protocols, and authentication requirements
• SAMA Regulations: References to relevant banking laws and regulatory compliance statements
• Dispute Resolution: Procedures aligned with Saudi banking regulations and Shariah principles
• Termination Rights: Conditions for account closure and relationship ending procedures

While Account Agreements and Agency Agreements may seem similar in banking contexts, they serve distinct purposes in Saudi Arabia's financial sector. Account Agreements establish the basic banking relationship and govern account operations, while Agency Agreements authorize third parties to conduct banking transactions on behalf of account holders.

• Scope of Authority: Account Agreements define the relationship between bank and customer directly, while Agency Agreements delegate specific powers to authorized representatives
• Party Structure: Account Agreements are two-party contracts between bank and account holder, whereas Agency Agreements involve three parties - the bank, account holder, and authorized agent
• Shariah Compliance: Account Agreements focus on Islamic banking products and services, while Agency Agreements emphasize Wakalah (agency) principles under Islamic law
• Duration: Account Agreements typically remain active until account closure, while Agency Agreements often have specific time limits or transaction scopes