Saudi Banks Ban WhatsApp for Customer Communication

A Ministry of Commerce employee communicates with customers via the “Live Chat” service (SPA)
A Ministry of Commerce employee communicates with customers via the “Live Chat” service (SPA)
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Saudi Banks Ban WhatsApp for Customer Communication

A Ministry of Commerce employee communicates with customers via the “Live Chat” service (SPA)
A Ministry of Commerce employee communicates with customers via the “Live Chat” service (SPA)

The Saudi Central Bank (SAMA) has prohibited the use of instant messaging apps like WhatsApp for customer communication, citing security concerns and deeming them unreliable channels.

This decision is based on SAMA’s regulatory authority and related laws, aiming to enhance best practices among financial institutions under its supervision while mitigating risks.

According to information made available to Asharq Al-Awsat, SAMA has directed financial institutions to explore secure alternative communication channels, such as integrating live chat or chatbot services within their official mobile apps or websites. These measures must also comply with personal data protection regulations.

Recently, the Banking Media and Awareness Committee of Saudi Banks warned against individuals fraudulently impersonating charitable organizations or public figures on social media, falsely offering financial aid. These deceptive actors use counterfeit documents and seals to mislead victims into paying fees in exchange for alleged assistance.

The committee highlighted various fraudulent tactics, including individuals posing as representatives of reputable charities or influential figures offering financial support. Victims are often pressured to make payments via bank transfers or fake payment links under the pretense of processing fees.

Reema Al-Qahtani, Head of Fraud Prevention at Arab National Bank, stressed that no legitimate entity requires fees, beneficiary additions, or bill payments to receive donations.

Similarly, Secretary-General of the Banking Media and Awareness Committee Rabiah Al-Shumaisi advised against engaging with any party requesting payments for donations or services, noting an increase in such fraudulent schemes.

For official bill payments and service fees, customers are encouraged to use SADAD, a secure payment system available across all Saudi banking apps.

In case of financial fraud, victims should immediately report incidents to their bank to initiate recovery procedures.



Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Dollar Rises ahead of Fed; Turkish Lira Drop Reins in G10 Currencies

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo
Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

The dollar rallied on Wednesday ahead of the Federal Reserve's decision on interest rates, but retreated from the day's highs after markets stabilized from an early shock caused by the detention

of Turkish President Tayyip Erdogan's main rival.

Traders are also digesting the Bank of Japan's earlier decision to hold interest rates steady, while the Fed's policy decision later will be crucial for investors eager to know what the central bank makes of Trump's policies and their impact on the US economy, and how that affects the rate outlook.

Fed policymakers are widely expected to keep rates on hold, and will also release new economic projections at the conclusion of the meeting later in the day, Reuters reported.

Feeding into an earlier rally in the dollar was news out of Turkey which saw the lira briefly tumble by the most in a day on record, rippling through major currencies as investors shifted into safe-haven assets.

By 1226 GMT, the euro was down 0.3% versus the dollar to $1.091, having fallen as much as 0.6% earlier. Even so, it remains near a five-month high of $1.0955 scaled in the previous session.

"The news from Turkey is having an impact on G10 currency markets and risk appetite in general," said Jane Foley, head of FX strategy at Rabobank.

"But I would think some of the initial impact of what's happened will begin to filter out from some of the euro trade once the market has become a bit more accustomed to it."

The yen weakened against the dollar, which rose 0.3% to 149.805 in volatile trade as investors mulled the BOJ decision to hold rates steady and comments from Governor Kazuo Ueda .

The widely expected BOJ decision underscored policymakers' preference to spend more time gauging how mounting global economic risks from higher US tariffs could affect Japan's fragile recovery.

"The decision to leave monetary policy unchanged itself is not a surprise, so its impact on exchange rates is limited. However, the earlier-than-usual timing of the announcement seems to have led financial markets to initially interpret that the BOJ (did not consider) bringing forward a rate hike," said Hirofumi Suzuki, chief FX strategist at SMBC.

Adding to nervousness among investors, Israeli airstrikes pounded Gaza overnight, while US President Donald Trump and Russian President Vladimir Putin failed to reach an agreement on a Ukraine ceasefire.

The more risk-sensitive currencies edged lower, with sterling down 0.2% at $1.29795, not far from the previous session's four-month high of $1.3010, while the Australian and New Zealand dollars fell 0.4% and 0.5%, respectively.

Against a basket of currencies, the dollar ticked up 0.2% to 103.55, coming off a five-month low of 103.19 on Tuesday.

The dollar has fallen nearly 4% for the month, pressured by Trump's erratic approach to tariffs and as fears mount of a recession in the world's largest economy.

Traders are currently pricing in nearly 60 basis points of Fed rate cuts by the year end.

"The March FOMC meeting will likely be all about policy uncertainty. The Fed will almost certainly stay on hold, emphasising patience over panic," said analysts at Bank of America Securities.

"The (Summary of Economic Projections) forecasts and distribution of risks are both likely to reflect stagflation: weaker growth and higher inflation."