Saudi Gazette report
JEDDAH — The Saudi Arabian Monetary Agency (SAMA) has banned the sale of CASHU prepaid cards, which is widely used for online purchases, fearing that the card could be misused for funding terror and money laundering.
According to Makkah Arabic daily, SAMA has already instructed the Ministry of Commerce and Investment to ban CASHU as the company is based abroad and it cards are distributed in the Kingdom through local agents. People can purchase CASHU cards from the company’s websites.
SAMA took action after it observed wider promotion of CASHU cards in the Kingdom with a large number of customers using them for transactions and that the Saudi banking system is unable to monitor misuse of the cards and the transactions done using them.
The Saudi central bank fears CASHU could be misused for money laundering and financing terrorist operations. The royal decree that was issued outlining the bank monitoring system prevents an unauthorized natural or legal person form practicing any banking activity.
In its circular issued to the Ministry of Commerce and Investment, SAMA said only the banks that operate in the Kingdom are allowed to issue such prepaid cards in accordance with the rules and regulations issued by the agency for prepaid services.
In a related development, the ministry has urged the Council of Saudi Chambers to inform all business firms and organizations about the ban on selling CASHU cards and that the ministry would take punitive action against those who violate the ban.
CASHU was established in 2002 by Maktoob (now Yahoo). “It’s a safe payment method designed for and customized to suit, serve & support online shoppers in all Arabic speaking and surrounding countries with secure, accessible and easy to use payment solutions,” its website said.
“Over years we have built a large network of credible and approachable top-up vendors creating the availability to our users and spread in thousands of spots across every country and city within MENA region. This huge network made easy to all online buyers to fund their CASHU accounts and spend these funds to buy online from those merchant who accepts CASHU as a payment option,” the company said.
CASHU helped thousands of merchants around the globe to grow businesses and to expand smoothly and securely in the MENA region offering their products and services to millions of buyers residing in this raw region.
“Our payment platform is built upon, encapsulates the most sophisticated, up to date fraud prevention and AML systems reducing the risks associated with online payments for both buyers and sellers which all allows for wider, safer and faster consumer participation in e-commerce,” the company said.
