Over the past decade, the concerned authorities have taken several initiatives and measures to combat money-laundering operations. Saudi Arabia has become one of the leading countries actively involved in fighting such operations and related activities. Saudi Arabia’s position towards combating money laundering stems from its commitment to Sharia, national laws and international standards. In this regard, FATF report confirmed that Saudi Arabia has an understanding of the money laundering risks pursuant to its national risk assessment. At the beginning of 1439 AH (2017), Saudi Arabia issued laws complementing previous efforts. The laws are in line with the recommendations of the Financial Action Group (FATF). They reflect a solid framework for the fight against money laundering and terrorism financing. As such, FATF noted that Saudi Arabia AML/CFT preventive measures are strong and well-established to combat money laundering and terrorism financing. In 2019, FATF granted full membership to Saudi Arabia, as the first Arab State, in appreciation of the Kingdom’s efforts exerted in the area of combating money laundering, financing of terrorism and proliferation, besides meeting international standards and requirements in this regard and its compliance with international and bilateral conventions in this area.

The Anti-Money Laundering Law sets out acts which if committed by a person, he/she shall be deemed as committing an offense of money laundering, such as transfers, converting the nature of funds, moving them or conducting any activity in therewith, knowing that the funds are the proceeds of a crime for the purpose of concealing or disguising the illicit source of such funds or to assist a person involved in the perpetration of a predicate crime from which such funds were obtained in order to evade the consequences of its perpetration. The acts include acquisition, possession or use of funds, knowing that they are the proceeds of a crime or an illegitimate source, and depositing, incorporation or coverage of the nature, source, movement, ownership, place, disposition manner, or related rights associated with funds, knowing that they are proceeds of crime. This also includes initiating or participating in the commission of any of the foregoing acts by agreement, or to provide assistance, incitement, counseling, guidance, advice, facilitation, collusion, cover-up or conspiracy.

The Anti-Money Laundering Permanent Committee emphasizes caution against the involvement in methods of money laundering and encourages everyone to raise awareness and knowledge so as not to be exploited in the passage of these activities and the subsequent legal accountability. In this regard, individuals are warned against any requests to receive cash for depositing in bank accounts belonging to them for fragmentation thereof and transferring funds later on to several people. As a result, the individual may be subject to punishment for his possible participation in the process of money laundering. AMLPC also cautions against transferring money to unknown persons, as this may be a contribution to the passage of a process related to money laundering. The Committee therefore emphasizes the importance of a legitimate relationship between the client and the beneficiary, and encourages making remittances or financial transactions through official channels.

The Committee also notes the risk of leniency in allowing any third party to use banking channels and products provided to a customer, such as allowing the use of the bank account for deposits and cash withdrawals by a non-customer, or the issuance of a loan or credit card in favor of another person, as this will be considered a leniency contributing to concealment of the real beneficiary of the services and products, or the receipt of cash from a known person to be deposited in the account of an unknown person. The cash to be deposited may be from an illegal source, which may expose the individual to accountability. The true source of funds and the actual purpose of the transaction should be disclosed when dealing with financial institutions, since invalid data may expose a person to accountability.

Saudi Arabia has imposed severe penalties for money launderers, as conviction for this crime will expose the doer to a fine of up to seven million riyals or imprisonment for up to fifteen years or both. A Saudi convicted of money laundering shall be prohibited from traveling outside the Kingdom for a period similar to that of the prison sentence. A non-Saudi convicted of money laundering shall be deported from the Kingdom after the execution of the sentence. The penalty may be reduced for the perpetrator of the crime of money laundering if the perpetrator informs the competent authorities of the crime before the authorities are aware of it, or has informed about other perpetrators and his report leads to their arrest or seizure of funds, instrumentalities or proceeds of the crime.