Saudi Arabia passed the Anti-Money Laundering Law and Supplementary Guidance, under Royal Decree referenced M/39 dated 25/6/1424H corresponding to (24 Aug 2003) ratifying the Council of Ministers
Decision #167 dated 20/6/1424H (corresponding to 19 Aug 2003). This Law provides a statutory basis for criminalising money laundering and terrorist financing activities.
Saudi Arabia Monetary Agency (SAMA):
Capital Market Authority (CMA):
Saudi Arabia Monetary Agency (SAMA); a) for all banks, money exchangersc) for insurance companies:b) for financing companies and branches of foreign banks operating in the Kingdom of Saudi Arabia:
Yes The AML Law was ratified in 2003. It requires subject entities to update their customers’ profiles at least once every five years
No, the latest FATF review was conducted in 2010:
Originals of either Personal Status Card; National Identity Card; Family Registration Book; Certified Family Record; Diplomatic passport; Special Passport; Hafithat Nofos; Certified Civil
Record for Women; Certificate of Birth
Residence Book (Iqama); Five Year Resident Book; GCC Passport or Diplomatic Card
Legal entities should verify the beneficiaries owner of all accounts and relationships and should conduct due diligence on all final beneficial owners. Legal persons should establish the identity of all shareholders or beneficial owner who own 5% and more of the company's shares.
Simplified due diligence procedures are allowed for customers that are not considered high risk.
No specific guidance is provided however all PEPs are to be considered high risk and subject to enhanced due diligence measures. Opening an account for a PEP requires an approval of a general manager,
managing director, or CEO.
a) banks should not open a correspondent account for or deal with a shell bank; b) correspondent bank accounts shall not be opened before the approval of the compliance officer in addition to that of the chief executive officer/director; c) banks should immediately inform SAMA of opening correspondent bank account in Saudi Riyal; d) third parties are prohibited from operating correspondent bank accounts; e) local cash deposits should not be allowed. This arrangement, known as "Payable-Through Accounts" should not be accepted; f) the correspondent bank should not be under sanctions by the UN or Saudi Arabia; g) banks should also determine from any available information (e.g., the internet) whether the correspondent bank has been subject to any money laundering, terrorist financing investigations or regulatory action; h) banks should obtain certification of AML/CTF compliance for all correspondent relationships, which should include the following information: a. the location, major business activities, and management; b. that they are under jurisdiction of their central bank or a similar monitory authority and are committed to the FATF recommendations; c. that they are governed by and committed to AML/CTF and KYC policies and procedures; d. that they have procedures in place for reporting suspicious transactions; e. that they are not dealing with any shell bank; f. any other pertinent information that can reassure the bank that sufficient focus is being directed to combating money laundering and terrorist financing; and g. the certification should be either renewed or confirmed by the correspondent bank every three years; and i) banks and money exchangers should apply satisfactory due diligence on a continuous basis regarding the banking correspondence relationships, document the responsibilities of AML/CTF, which are the correspondent and receiving banks responsibilities and apply due diligence regarding all banking correspondence relationships, including correspondence relationships that already exist.
It is forbidden to open accounts or establish relationships for other than face-to-face customers. All account holders are subject to interview and identity verification.
Financial Intelligence Unit – Ministry of Interior:
Yes. The Law mentions that the appropriateness and sophistication of the automated monitoring system will depend on the relevance of the parameters to the nature of business undertaken by each bank or money exchanger.
No specific guidance is mentioned in the Law.
External auditors do not report on AML systems and controls. However, SAMA performs regular reviews and solicits external assistance. Subject entities are not required to engage independent parties to report on their AML compliance.
Issued at 15 for males, compulsory at 17. Non-compulsory for females but issued at 18.
Yes, related guidance is provided in the AML law and supplementary guidance
Copies of Commercial registration; entity's license; Articles of Association and appendices ID of the owner of the licensed business; List of the owners of the business entity; List
of persons authorized by the owner to operate the accounts.