Financial Crime World

Saudi Arabia’s Regulatory Bodies Crack Down on Money Laundering with AML Compliance Regulations

In the Kingdom of Saudi Arabia, several regulatory bodies have taken pivotal roles in combating Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations:

Regulatory Bodies in Saudi Arabia

Saudi Arabian Monetary Authority (SAMA)

SAMA, the central bank of Saudi Arabia, is a cornerstone institution in AML regulation. It:

  • Issues AML rules and instructions.
  • Sets regulatory standards.
  • Supervises financial institutions’ compliance with AML and CTF regulations.

Supreme Committee for Combating Money Laundering and Terrorist Financing (SCTF)

SCTF, a vital governmental entity, is tasked with implementing AML policies and supervising compliance in Saudi Arabia. Its responsibilities include:

  • Developing AML policies and guidelines.
  • Conducting risk assessments and audits.

Ministry of Justice (MOJ)

MOJ plays a crucial role in assisting entities subject to AML/CTF regulations by issuing manuals and guidelines for their implementation.

Grant Thornton Saudi Arabia

Grant Thornton offers guides and resources to businesses and CFOs in navigating the complexities of AML/CTF regulations in Saudi Arabia.

AML/CTF Regulations in Saudi Arabia: Background and Consequences

Money laundering is not explicitly defined in Saudi Arabia’s Anti-Money Laundering Law. However, the law lists offenses regarded as money laundering:

  • Concealing the source of illegally obtained funds.
  • Using money from criminal activities.
  • Masking the true nature or disposition of funds obtained illegally.

Attempting money laundering activities, including aiding, abetting, or counseling, is also considered a crime.

Saudi Arabia’s Anti-Money Laundering Law and its Implementing Regulations align with international standards and conventions. Consequences for money laundering under Saudi Arabian law are severe, with penalties including:

  • Extended jail terms.
  • Significant fines.

SAMA: A Pillar of AML Efforts in Saudi Arabia

SAMA plays a key role in ensuring financial stability and implementing AML regulations in Saudi Arabia. In addition to AML regulations, SAMA also:

  • Oversees banking rules and regulations.
  • Supervises financial institutions.
  • Protects consumer rights.

For more information, please check the references below.

References