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Account Authorization Letter for Saudi Arabia

Account Authorization Letter Template for Saudi Arabia

An Account Authorization Letter is a formal banking document used in Saudi Arabia that grants specific individuals the authority to conduct banking transactions on behalf of an account holder. The document must comply with Saudi Arabian Monetary Authority (SAMA) regulations and local banking laws, including Islamic banking principles. It details the scope of authority granted, transaction limits, and duration of the authorization, while incorporating necessary security features and compliance requirements specific to Saudi Arabian banking regulations. The document serves as a legal instrument recognized by Saudi Arabian banks and financial institutions for delegating banking authority.

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What is a Account Authorization Letter?

The Account Authorization Letter is a critical document in Saudi Arabian banking operations, used when an account holder needs to delegate banking authority to another individual or representative. This delegation might be necessary for various reasons, such as corporate account management, personal absence, or business efficiency. The document must strictly adhere to Saudi Arabian Monetary Authority (SAMA) guidelines and incorporate Islamic banking principles where applicable. It includes detailed identification of both the account holder and authorized person, specific permissions granted, transaction limits, and duration of authority. The letter serves as a legal instrument that protects both the bank and account holder while facilitating necessary banking operations through authorized representatives. It's particularly important in the Saudi Arabian context where formal documentation and strict compliance with banking regulations are essential for any delegation of financial authority.

What sections should be included in a Account Authorization Letter?

1. Header Information: Bank's name and address, date, reference number, and formal letterhead elements

2. Account Holder Details: Full legal name, account number(s), identification details (National ID/Iqama for individuals or CR for companies), and contact information of the account holder

3. Authorized Person Details: Full legal name, identification details (National ID/Iqama), and contact information of the person being authorized

4. Scope of Authorization: Clear and specific description of the banking activities and transactions the authorized person can perform

5. Duration of Authority: Specific timeframe for which the authorization is valid, including start date and expiry date if applicable

6. Declaration and Confirmation: Statement confirming the account holder's conscious decision to grant this authority and accepting responsibility for authorized actions

7. Signatures and Authentication: Space for account holder's signature, authorized person's signature, and any required witness signatures or notarizations

What sections are optional to include in a Account Authorization Letter?

1. Transaction Limits: Specific monetary limits on transactions the authorized person can perform, used when the account holder wants to set boundaries

2. Special Instructions: Any specific conditions or restrictions on the authorization, included when there are particular limitations or requirements

3. Multiple Account Details: List of all accounts covered by the authorization, used when authority extends to multiple accounts

4. Corporate Resolution Reference: Reference to corporate resolutions authorizing the delegation, required for corporate account holders

5. Revocation Clause: Specific conditions under which the authorization can be revoked, included for additional security

What schedules should be included in a Account Authorization Letter?

1. Identification Documents: Copies of required identification documents for both account holder and authorized person

2. Specimen Signature Card: Official bank form containing specimen signatures of the authorized person

3. List of Authorized Transactions: Detailed breakdown of specific transactions and activities covered by the authorization

4. Corporate Documents: For corporate accounts, relevant company documents proving authority to delegate (e.g., board resolutions)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Sector

Banking

Cost

Free to use
Relevant legal definitions






















Clauses




















Relevant Industries

Banking and Financial Services

Corporate Services

Legal Services

Professional Services

Retail

Manufacturing

Healthcare

Education

Real Estate

Construction

Technology

Telecommunications

Import/Export

General Commerce

Relevant Teams

Finance

Legal

Compliance

Corporate Services

Administration

Treasury

Operations

Executive Office

Risk Management

Customer Service

Relevant Roles

Chief Financial Officer

Finance Manager

Account Manager

Treasury Manager

Company Secretary

Legal Counsel

Compliance Officer

Banking Relationship Manager

Corporate Services Manager

Financial Controller

Managing Director

Business Owner

Operations Manager

Administrative Manager

Executive Assistant

Power of Attorney Holder

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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