Circular
To all financing companies licensed by SAMA

HE:
Company:
Greetings,

Subject: AML/CFT Instructions  for Financing Companies

 Based on the Ministerial Decision No. 1566/1 of 21/7/1420H which granted SAMA the power to set all instructions that help to conduct its supervisory and regulatory responsibilities on the activity of financial leasing companies in the Kingdom, and with reference to the AML Law issued by virtue of Royal Decree No. 39/M of 25/6/1424H and its implementing regulations, which stated in Article (4) that "Financial and Non- Financial Institutions may not carry out any financial, commercial or similar operations under anonymous or fictitious names and they must verify the identity of the client, on the basis of official documents", as well as Article (6) which provides that "Financial and Non-Financial Institutions must have in place internal precautionary and supervisory measures to detect and foil any of the offences stated herein, and comply with all instructions issued by the concerned supervisory authorities in this area",

 Further to SAMA's correspondence dated 23/5/1424H accompanied by rules for Combating Money Laundering and Terrorism Financing Transactions addressed to leasing companies,  and
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 To cope with local and international developments and requirements in the area of combating money laundering and terrorism financing, SAMA has issued AML/CFT instructions aimed at protecting financing companies and their customers against illegal transactions involving money laundering and terrorism financing or any criminal activities, so as to enhance the integrity and safety of the financing sector in the Kingdom and promote confidence in it.

 All financing companies licensed by SAMA are required to make instructions and provisions stated therein an integral part of their regulations and procedures aimed at controlling, detecting and preventing money laundering and terrorism financing transactions. Suspicious activities must be reported.

 In this regard, SAMA intends to ensure the implementation of these instructions by all financing companies licensed by SAMA through on-site inspection processes or through reports or compliance certificates prepared by external auditors.

 Attached is a copy of the AML/CFT Instructions. You are required to notify your concerned departments, branches and subsidiaries to implement these Instructions, comply therewith and include them in your internal policies and procedures as from the date of this circular. We hope you inform SAMA (Banking Inspection Department) of the procedures taken to implement these Instructions within three months from the date of this circular.

Best regards,

                                                                                  Dr. Muhammad Al-Jasser
                                                                                               Governor

Distribution Scope:
All financing companies licensed by SAMA