Article 2 of the Saudi Cash Transport Law
المادة 2 من نظام مزاولة نقل النقود والمعادن الثمينة والمستندات ذات القيمة
The article sets out the bodies subject to the Law and limits licensing of transporting cash, precious metals and valuable documents to them, requiring some of them to have a dedicated security department.
Official text (Arabic)
This article has not been amended since the law was issued.
1- تطبق أحكام هذا النظام على الجهات الآتية:
أ - المؤسسات والشركات المالية العاملة في المملكة التي تتطلب طبيعة عملها نقل النقود و المعادن الثمينة والمستندات ذات القيمة، مثل: البنوك أو محلات الصرافة أو شركات ومؤسسات الاستثمار أو التأمين.
ب - مصانع المعادن الثمينة في المملكة، ومعارضها، ومحلات بيعها، وذلك فيما يتعلق بنقل المعادن الثمينة .
ج - المؤسسات، والشركات السعودية الحاصلة على ترخيص بمزاولة نشاط الحراسة المدنية الخاصة، وذلك عند مزاولتها لنشاط نقل النقود و المعادن الثمينة و المستندات ذات القيمة .
2 - لا يجوز الترخيص بمزاولة نقل النقود و المعادن الثمينة والمستندات ذات القيمة إلا للجهات المشار إليها في البند (1) من هذه المادة، بشرط توافر إدارة خاصة بالأمن في الجهات المذكورة في الفقرتين (أ) و (ب) من البند الآنف ذكره.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 2 explained in plain English
This article sets out the scope of application of the Law and who may obtain a license to practice the activity of transporting cash, precious metals and valuable documents (in the senses given in Article 1).
Three kinds of bodies are subject to the Law:
- Financial institutions and companies operating in the Kingdom whose type of work requires such transport, such as banks, exchange shops, and investment or insurance companies and establishments.
- Precious metals factories in the Kingdom, and their showrooms and sales shops, in respect of the transport of precious metals only.
- Saudi establishments and companies holding a license to practice private civil guarding, when they practice this activity.
Limiting the license: a license to practice the activity may not be granted to any body other than these. In addition, it is required that a dedicated security department be available in the financial bodies and the precious metals factories, showrooms and shops (paragraphs (a) and (b)). As for private civil guarding companies, the article does not mention this requirement for them.
After verifying that the body falls within the categories mentioned, Article 3 comes to regulate submitting the license application or its renewal to the General Security Directorate, and its fee. Anyone who wishes to know whether the article applies to his establishment may consult a lawyer specializing in commercial and company cases.
Practical example
A jewelry shop in Jeddah wants to transport a quantity of gold to its other showroom itself. The shop falls within paragraph (b) in respect of the transport of precious metals, and it may not be licensed for this activity unless it has a dedicated security department.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 2 of the Saudi Cash Transport Law
May any company work in transporting cash?
No. The license is limited to the three kinds of bodies mentioned in item (1): financial bodies, precious metals factories, showrooms and shops, and licensed Saudi private civil guarding companies.
Does a bank need a dedicated security department to obtain the license?
Yes. The article requires a dedicated security department in the bodies mentioned in paragraphs (a) and (b), and banks are among them.
Does the Law apply to gold shops in the transport of cash as well?
The article mentions precious metals factories, showrooms and shops in respect of the transport of precious metals.
More articles on Licensing Cash Transport
- Article 1
Article 1 defines four key terms in the Law: cash, precious metals, valuable documents, and the regulated activity, which is the service of transporting them.
يقصد بالألفاظ والعبارات الآتية – أينما وردت في هذا النظام – المعاني الموضحة أمامها ما لم يقتض السياق خلاف ذلك: 1 - النقود : كل عملة متداولة رسميا في المملكة، سو
- Article 3
The article provides that license applications and renewals for cash transport are submitted to the General Security Directorate, and the applicant pays a fee of SAR 1,000 per year.
1- تقدم طلبات الحصول على تراخيص مزاولة هذا النشاط ، أو تجديده إلى مديرية الأمن العام، وتحدد اللائحة التنفيذية لهذا النظام الشروط والمستندات المطلوبة. 2 - يدفع ط
- Article 4
The Minister of Interior or his delegate approves the body's practice of the activity, and the Director General of Public Security then issues the license for three years, renewable, specifying the area or areas of activity.
يصدر وزير الداخلية – أو من يفوضه – قرارا بالموافقة على مزاولة الجهة طالبة الترخيص للنشاط، وبناء عليه يصدر مدير الأمن العام تراخيص مزاولة النشاط لمدة ثلاث سنوات
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.