Document background
The Bank Gift Letter is a crucial document in Saudi Arabian banking practice, designed to facilitate gift transfers while ensuring compliance with both regulatory requirements and Islamic principles. This document is typically used when an individual wishes to make a substantial monetary gift or transfer assets through banking channels in Saudi Arabia. The Bank Gift Letter includes essential information such as the identities of both donor and recipient, specific details of the gift, source of funds declaration, and transfer instructions. It serves multiple purposes: documenting the gift-giving intention, ensuring Shariah compliance, meeting anti-money laundering requirements, and providing the bank with proper authorization to execute the transfer. The document must adhere to Saudi Arabian Monetary Authority (SAMA) regulations and incorporate Islamic banking principles, particularly those related to 'Hiba' (gift-giving under Islamic law).
