New regulation requires expatriates to hold Saudi bank accounts
New regulations, soon to be implemented in Saudi Arabia, require expatriate workers residing in the kingdom to open local bank accounts. The measure will enable close monitoring of foreign workers’ financial transactions, which the Saudi government deems necessary as part of its fight against money laundering and currency drainage, according to Jeddah Arab News.
The new requirement is also aimed at protecting the rights of both employers and employees, says economic analyst Fahd Bin Juma. The regular recording of salary deposits will help avoid false allegations regarding the payment of due wages.
There are currently seven million expatriate workers in Saudi Arabia, according to the ministry of labor and social affairs. It is predicted that the total yearly wages of these workers will reach approximately 70 billion Saudi riyals ($18.6 billion). These funds are generally transferred to family members back home.
To facilitate enforcement of the new law, the state passport department will provide a list of all workers who will be required to comply with the measures. — (MENA Report)
© 2001 Mena Report (www.menareport.com)
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