Saudi Arabia’s Crackdown on Money Laundering: An Effective Response to Global Obligations?

In a global effort to combat financial crime, the Kingdom of Saudi Arabia has intensified its campaign against money laundering. In a recent study published in the Journal of Money Laundering Control, Dr. Samah Al Agha of Dar Al-Hekma University explored the effectiveness of Saudi Arabia’s anti-money laundering (AML) measures in the context of international commitments.

Research Objectives

The study aimed to scrutinize the Saudi AML regime in line with its obligations under the Financial Action Task Force (FATF) and various treaties. Dr. Al Agha employed a qualitative approach, combining primary and secondary sources, to evaluate the effectiveness of these measures.

Data Collection and Analysis

The data for this study were gathered through analyzing the Saudi Arabian AML law and the processes of money laundering detection in the country. Dr. Al Agha also investigated outcomes of seminal cases tried in Saudi courts, supported by journal articles, academic books, and credible websites.

Key Findings

Dr. Al Agha’s findings underscored the success of the Saudi Arabian campaign against money laundering. The collaboration and coordination between financial institutions, banks, and government bodies in Saudi Arabia is a significant contributing factor to this achievement. These entities are not only working together to prevent money laundering but are also adhering to the AML law in harmony with other criminal laws, such as the:

Anti-Bribery Law
Anti-Trafficking in Persons Law
Anti-Drug Trafficking Law

Limitations

Despite the substantial discoveries, the study encountered limitations due to the sensitive nature of money laundering cases in the Saudi justice system. Publicly available information on money laundering detections and confiscations of proceeds was limited. To mitigate this issue, the study relied on reputable sources to report on some cases.

Conclusion

Dr. Al Agha’s research illustrates the efficiency and importance of the Saudi Arabian AML regime. The fruitful collaboration between regulatory agencies, financial institutions, and the legal sector has contributed to a significant decrease in money laundering activities within the Kingdom of Saudi Arabia. It also underscores the vital role of uniting resources and expertise to uphold the rule of law and ensure justice.

Keywords

Money laundering
Crime
Financial regulation
Saudi Arabia
FATF

Citation

Al Agha, S. (2023). Combatting Money Laundering in Saudi Arabia: An Effective Response to Global Obligations? Journal of Money Laundering Control, 26(4), 684-695. https://doi.org/10.1108/JMLC-02-2023-0046