Financial Crime World

Saudi Arabia’s Crackdown on Money Laundering: A Proactive Approach and Global Commitment

Saudi Arabia, a key player in the global financial scene, is taking a proactive stance against money laundering (ML) by aligning itself with international standards and safeguarding its financial system.

Saudi Arabia and FATF

  • membership in the Financial Action Task Force (FATF)
  • global leader in combating ML and terrorism financing
  • comprehensive regulations for country’s ability to counter financial crime

Importance of ML Compliance

  • economic implications extend beyond national borders
  • bolsters Saudi Arabia’s economy and financial transparency
  • trust, security, and transparency in broader financial system

Adherence to Global ML Regulations

  • mutual evaluation reports by FATF
  • upholding international standards
  • collaboration with international partners

Proactive Response to ML Risks

  • high-value real estate transactions
  • cash-intensive economy
  • Hawala and informal money transfer systems
  • cross-border trade
  • complex corporate structures
  • economic diversification
  • technological advancements
  • increased financial activity

Saudi Arabian Anti-Money Laundering Law

  • approved by Cabinet Decision No. 80/1439
  • designed to combat ML and terrorism financing
  • international conventions, UN Security Council resolutions, and money laundering laws in developed nations

Regulatory Bodies

  • Saudi Central Bank (SAMA)
  • Financial Sector Development Program (FSDP)
  • responsible for overseeing anti-ML and terrorism financing efforts

Penalties for ML in Saudi Arabia

  • imprisonment for up to 15 years
  • fines of up to 7 million Riyals
  • both imprisonment and fines
  • confiscation of laundered proceeds
  • fines for non-compliant businesses

Saudi Arabia’s Membership in FATF

  • joined in 2019
  • commitment to maintaining financial integrity
  • role in global arena against financial crime

FAQ

  1. What is the Saudi Arabian Anti-Money Laundering Law?

    • Approved by Cabinet Decision No. 80/1439
    • Designed to combat money laundering and terrorism financing
    • Complies with international conventions, UN Security Council resolutions, and money laundering laws in developed nations

  2. Is there a specific regulator responsible for Money Laundering in Saudi Arabia?

    • Saudi Central Bank (SAMA) and Financial Sector Development Program (FSDP)

  3. What industries or professions are subject to particular obligations for AML regulations in Saudi Arabia?

    • Financial services
    • Real estate agents
    • Lawyers and legal advisors
    • Accountants
    • Dealers in precious metals and stones

  4. What kinds of penalties exist for money laundering in Saudi Arabia?

    • Imprisonment for up to 15 years
    • Fines of up to 7 million Riyals
    • Both imprisonment and fines
    • Confiscation of laundered proceeds
    • Finances for non-compliant businesses

  5. When did Saudi Arabia join FATF?

    • 2019