Financial Crime World

Saudi Arabia Takes Major Steps Against Financial Crime with Advanced Risk Assessment Tools

Saudi Arabia’s Fight Against Money Laundering and Terrorism Financing Gains Momentum

Riyadh, Saudi Arabia - The Kingdom of Saudi Arabia has made significant progress in its efforts to combat money laundering and terrorism financing by conducting comprehensive national risk assessments. These National Risk Assessments (NRAs) on Money Laundering and Terrorism Financing have been instrumental in identifying vulnerabilities and prioritizing mitigation strategies.

Collaborative Efforts Lead to Robust Methodology

The Anti-Money Laundering Permanent Committee (AMLPC) and the Permanent Committee for Counter Terrorism (PCCT) collaborated to develop a robust methodology for assessing ML/TF risks. This approach is based on three key components:

  • Threat: Identifying potential sources of money laundering and terrorism financing
  • Vulnerability: Assessing areas where the financial system may be susceptible to exploitation
  • Consequence: Evaluating the potential impact of ML/TF activities

Comprehensive Assessments Yields Valuable Insights

The NRAs relied on a wide range of qualitative and quantitative data, including:

  • Statistics from competent authorities
  • Surveys
  • Expert opinions
  • Technical teams constituted from various authorities, including law enforcement agencies, supervision bodies, investigation entities, prosecution offices, and private sector representatives

These assessments have helped the Saudi government to prioritize its risk mitigation activities and make informed decisions about limiting AML/CFT coverage for low-risk sectors and products.

Private Sector Plays Crucial Role in Risk Assessment Process

The private sector has been actively involved in the NRA process, providing valuable insights and data that have helped better understand ML/TF risks. Officials from PCCT emphasized the importance of close collaboration with the private sector to ensure effective and aligned efforts.

National Strategic Objectives Plan to Combat Money Laundering and Terrorism Financing

The NRAs have led to the development of a national strategic objectives plan to combat money laundering and terrorism financing, which includes measures to:

  • Enhance customer due diligence
  • Improve reporting requirements
  • Strengthen international cooperation