Financial Crime World

Saudi Arabia’s War on Financial Crime: The Anti-Money Laundering Permanent Committee (AMLPC)

The Saudi Arabian authorities are waging a battle against money laundering and economic crimes, ensuring those who facilitate or hide the illicit origin of funds derived from predicate offenses are brought to justice. The AMLPC, chaired by the Saudi Arabian Monetary Authority (SAMA), was established in 1999 to execute the Financial Action Task Force (FATF) 40 recommendations for combating money laundering and related financial crimes.

Threats of Money Laundering and Economic Crimes

Money laundering poses a significant threat to both the economic and social fabric of any nation, particularly those with weak anti-money laundering measures in place. Money laundering emerges from the legitimization of criminal proceeds derived from acts considered predicate offenses under Sharia and secular law. These crimes encompass all offenses committed within Saudi Arabia’s borders and abroad when they would constitute a crime under the jurisdiction of the Kingdom or the Sharia law.

Consequences of Money Laundering

The proliferation of money laundering activities within a society can lead to:

  • Increasing crime rates
  • A decline in the values of education and culture
  • The widespread emergence of shadow economies

These developments can ultimately stifle economic growth, fuel inflation, compromise fair competition, and negatively impact other business sectors.

Money Laundering and Anti-Money Laundering Law

Money laundering is not confined to cash transactions but includes the concealment of the true origin of assets, property, or economic resources of any value, type, or ownership. The Anti-Money Laundering Law, enacted by Royal Decree No. (M/20) in 2018, specifically outlaws the commission of such crimes, carrying penalties including:

  • Hefty fines
  • Extended prison sentences
  • Travel bans or deportations for those convicted

Reporting Criminal Activities

Saudi Arabia remains steadfast in its commitment to combating financial crimes and protecting its economic and social well-being in accordance with both Sharia and international law. Offenders who report their criminal activities to the authorities prior to discovery, or whose reporting leads to the arrest of other individuals and the seizure of related funds, instrumentalities, or proceeds, may receive reduced penalties.

FATF Recommendations and AMLPC’s Role

The AMLPC’s mission is to implement FATF recommendations, oversee their execution, and explore all topics related to anti-money laundering efforts in the Kingdom. The consequences for committing a money laundering offense are severe, reflecting the Kingdom’s unwavering stance against financial crimes and their destructive consequences.