Title: Saudi Arabia’s Anti-Money Laundering Law: Definitions, Criminal Acts, Preventive Measures, and Enforcement
Saudi Arabian Anti-Money Laundering (AML) Law, enacted to combat financial crimes and shield the economy from illicit funds, consists of several articles that outline:
- Definitions
- Criminal Acts
- Preventive Measures
- Enforcement Agencies
I. Definitions
Article 1: This article provides definitions for essential terms, including:
- AML Law
- Implementing regulation
- Funds
- Predicate offense
- Proceeds of crime
- Instrumentalities
- Financial institutions (FIs)
- Designated non-financial businesses and professions (DNFBPs)
- Non-profit organizations (NPOs)
- Provisional seizure
- Confiscation
- Supervisory authority
- Competent authority
- Bearer negotiable instruments
- Beneficial owner
- Customer
- Business relationship
- Shell bank
- Wire transfer
- Due diligence measures
- Internal policies, procedures, and controls
II. Criminal Acts
Article 2: This article outlines criminal acts that involve funds known to be proceeds of crime, including:
- Converting, transferring, or conducting transactions on such funds
- Acquiring, possessing, or using funds that are known proceeds or from an illegal source
- Concealing or disguising the true origin of funds
Additionally, this article covers attempts, agreements, facilitation, abetting, counseling, or advice related to committing any of these acts.
III. Preventive Measures
Article 5: This article requires FIs, DNFBPs, and NPOs to:
- Identify, assess, and document money laundering risks
- Update risk assessments regularly
- Evaluate new products, business practices, and technologies prior to their use
IV. General Directorate of Financial Intelligence
Article 17: Establishes the General Directorate of Financial Intelligence as a national central agency to:
- Receive suspicious transaction reports or other related information
- Analyze such reports and
- Disclose the results to competent authorities
V. Supervision
Competent authorities (Article 24): Have the power to:
- Collect information
- Apply supervisory measures, such as on-site inspections, offsite measures, and anti-money laundering risk assessment
- Issue guidance, decisions, and instructions
- Cooperate and coordinate with foreign counterparts
VI. Sanctions
Consequences for individuals and legal entities convicted of money laundering crimes include:
- Imprisonment
- Fines, as outlined in Articles 26, 27, and 31
Sanctions’ severity varies based on:
- Nature of the crime
- Presence of aggravating factors
- Involvement in a criminal organization
- Prior convictions
VII. International Cooperation
Article 38 and 39: Competent authorities can:
- Exchange information and make inquiries on behalf of foreign counterparts
- Collaborate in relation to money laundering and predicate offense investigations and prosecutions
VIII. Confiscation
Article 33: Orders for confiscation of laundered funds, proceeds of crime, and instrumentalities upon conviction for a money laundering or predicate offense. Confiscation orders may also include other funds owned by the convict to recover an equivalent value.