Saudi Arabia’s Battle Against Financial Crimes: Combating Money Laundering and Terrorist Financing in the Kingdom

Saudi Arabia’s Vulnerable Economy

• A $1 trillion GDP in 2023
• Largest economy in the Middle East
• Driven by oil and gas industry
• Around $10 billion is laundered annually
• Heightened risks in real estate and precious metals trading
• Luxury goods market expansion fuels concerns

The Need for Stricter Regulations

• Adhering to international standards, e.g., FATF
• Key regulations: (1) Anti-Money Laundering Law of 2003, (2) Implementing Regulations to the Anti-Money Laundering Law of 2017, (3) Anti-Money Laundering and Counter-Terrorist Financing Rules, and (4) Saudi FATF’s Recommendations

Saudi Arabia’s Institutional Framework

• Ministry of Anti-Money Laundering
• Saudi Arabian Monetary Agency (SAMA)
• Capital Markets Authority (CMA)
• Communications and Information Technology Commission (CITC)
• Saudi Central Bank (SAMA)
• Multiple other authorities

Fighting Financial Crimes with Technology

• Fintech companies adding complexity
• Utilizing advanced technologies: AI, ML

Adhering to Identification Requirements

• Natural persons: full name, address, date and place of birth, nationality
• Detailed identity verifications using ID cards, residence permits, or passports

Robust Reporting and Penalties

• Retaining client due diligence data for at least ten years
• Mandatory reporting of suspicious transactions to SAFIU
• Failure to comply: fines up to 7 million riyals ($1.8 million) and up to 15 years in imprisonment

In Conclusion

• Unwavering commitment to combating money laundering and terrorist financing
• Comprehensive regulatory framework and ongoing reforms
• Contribution to international efforts in combating financial crime