Financial Crime World

Saudi Arabia’s Anti-Money Laundering Law: Definitions and Criminal Acts (Part 1)

Saudi Arabia’s Anti-Money Laundering (AML) Law aims to combate financial crimes and prevent the Kingdom from being a haven for illicit proceeds. In this article, we explore the key definitions and criminal acts stipulated in the Saudi AML law.

Definitions

  • The Law: Saudi Arabian Anti-Money Laundering Law
  • The Regulation: Implementing rules of the AML law
  1. Funds: Assets of any kind, movable or immovable, tangible or intangible, including digital systems and bank credits, showing ownership or interest, commercial papers, securities, or income derived from such funds.
  2. Predicate Offense: Any criminal act punishable under Sharia or statutory law in Saudi Arabia or a crime under the laws of the country where it was committed that would have constituted a criminal offense under Saudi law.
  3. Proceeds of Crime: funds directly or indirectly obtained from or through a predicate offense, regardless of location.
  4. Instrumentalities: Anything prepared, used, or intended to be used in committing a crime, including digital systems and bank credits.

Entities and institutions

  1. Financial Institutions (FI): Any entity conducting one or more financial activities or operations in compliance with the implementing regulations.
  2. Designated Non-Financial Businesses or Professions (DNFBP): Commercial or professional activities, such as real estate, legal, or accounting, as specified in the implementing regulation.
  3. Non-Profit Organizations (NPO): Any entity legally authorized to collect, receive, or disburse funds for charitable, religious, cultural, educational, social, or cooperative purposes.
  1. Provisional Seizure: A temporary ban on the transport, transfer, exchange, conversion, disposal, or movement of funds and their temporary possession by a competent court or authority.
  2. Confiscation: Permanent expropriation of funds, proceeds of crime, or instrumentalities by a competent court or authority.
  3. Supervisory Authority: The body responsible for monitoring compliance by FIs, DNFBPs, and NPOs with requirements under the law, its regulations, or any relevant decisions or instructions.

(To be continued in the next article: Article 13-20, Competent Authorities, Bearer Negotiable Instruments, Beneficial Owner, Customer, Business Relationship, Shell Bank, and Wire Transfer)

Stay tuned as we continue to uncover important concepts and terminology in the Saudi Arabian Anti-Money Laundering Law!