Saudi Arabia

New Documents

The Saudi Arabian Monetary Authority highlighted the release of the fourth round of mutual evaluations regarding the country’s anti-money laundering and counterterrorist financing regime issued by the Financial Action Task Force and the Middle East and North Africa Financial Action Task Force.

The Saudi Arabian Monetary Authority announced the launch of a licensing program for non-bank financial institutions as part of its effort to open the financial services market to non-banking companies and support development of financial technologies.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. State Department identifies Saudi Arabia as a jurisdiction of concern. Saudi Arabia is a growing financial center in the Gulf Region. Although Saudi authorities have noted a rise in narcotics trafficking during the past few years, there is no indication of significant narcotics-related money laundering. Bulk cash smuggling from individual donors and Saudi-based charities has been a major source of financing to extremist and terrorist groups over the past 25 years. Funds are reportedly collected and illicitly transferred in cash because of tighter bank regulations. Despite serious and effective efforts to counter terrorist financing originating from within its borders, entities in Saudi Arabia are likely to continue serving as sources of cash flow to Sunni-based extremist groups. Saudi Arabia has publicly imposed sanctions on more than 20 Hizballah-affiliated individuals and companies since May 2015. Some Saudi officials acknowledge difficulty in following the money trail with regard to illicit finance because of the preference for cash transactions in the country and the regulatory challenges posed by hawalas.
  • KYC Covered Entities: Banks and licensed money remitters and exchangers; real estate agents; investment and insurance companies; dealers in rare commodities (e.g., antiques) and precious metals and stones; lawyers, auditors, and accountants
  • STR Covered Entities: Banks and licensed remittance and exchange companies; investment and insurance companies; dealers in rare commodities (e.g., antiques) and precious metals and stones; real estate agents, lawyers, auditors, and accountants
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: N/A
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 17 High : 0
Largely Compliant : 21 Substantial : 4
Partially Compliant : 2 Moderate : 4
Non-Compliant : 0 Low : 3

Saudi Arabia's technical compliance was re-rated in a Jan. 17, 2020 follow-up report

BASEL i

Rank : 63/125
Score : 5.26/10

TRANSPARENCY INTERNATIONAL i

Rank : 51/180
Score : 53/100

Tax Justice Network i

Rank : 45/133
Score : 67/100