Financial Crime World

Saudi Arabia Cracks Down on Money Laundering with Severe Penalties

Saudi Arabian authorities are taking a firm stand against money laundering and its associated crimes. The Anti-Money Laundering Permanent Committee (AMLPC), chaired by the Saudi Arabian Monetary Authority (SAMA), is leading the charge.

The Serious Risks of Money Laundering

Money laundering is a grave concern for Saudi Arabia. The AMLPC, made up of representatives from various ministries and institutions, stresses the significant risks it poses to a country’s economy and society. These risks stem from individuals attempting to legitimize ill-gotten funds derived from predicate offenses, which include:

  1. Crimes punishable under Sharia and statutory laws of Saudi Arabia
  2. Criminal activity considered a crime under the laws of the state where it occurred

The AMLPC is tasked with implementing anti-money laundering regulations and enforcing the Financial Action Task Force’s (FATF) recommendations.

Societal Risks

Money laundering can lead to increased crime rates and erode the values of education and culture. It contributes to the emergence of a shadow economy, resulting in:

  • Economic decline
  • High inflation
  • Negative impact on various business sectors

The Law and Penalties

Saudi Arabia’s Anti-Money Laundering Law, issued in 2018, deems money laundering a major offense punishable by:

  1. A fine of up to seven million riyals
  2. Imprisonment for up to fifteen years
  3. Both a fine and imprisonment
  4. Travel ban for a duration equal to the imprisonment term for Saudis
  5. Deportation upon completion of sentences for non-Saudis

Convicteds may have their penalties reduced if they:

  • Proactively report the crime
  • Assist in arresting or seizing related funds, instrumentalities, or proceeds

Money Laundering and Its Assets

Money laundering involves more than just cash. It includes:

  • Assets
  • Property
  • Economic resources

Any funds linked to predicate offenses are targeted. A person convicted of money laundering is unrelated to their commission of a predicate offense, and penalties apply equally to Saudis and non-Saudis.

Saudi Arabia’s Unyielding Stance

Saudi Arabia’s uncompromising stance against money laundering underscores its commitment to maintaining a robust and transparent economy and ensuring a strong, secure future for its citizens.

FATF and Saudi Arabia’s Commitment

The FATF is an international organization that:

  1. Sets standards for anti-money laundering and counter-terrorism financing efforts
  2. Monitors members’ adherence to these standards

By focusing on money laundering and its associated risks and penalties, Saudi Arabia demonstrates its dedication to the FATF’s recommendations and combating financial crime for the benefit of its citizens and the global economy.