1- What is the definition of money-laundering operations?
Money laundering operations are processes by which criminals legitimize the proceeds resulting from criminal activities.
2- What is the economic and social impact of money laundering operations?
Money laundering offenses pose a serious risk to the economic and social aspects of any State, especially those, which implement weak measures in fighting such crimes.
3- What are the potential economic impacts of money laundering operations on the national economy?
Money laundering operations in any country may lead to spreading the shadow economy or commercial concealment, resulting into a decline in the economic growth. In addition, Money Laundering contributes to create economic and social gaps between members of the society and increases poverty rates.
4- What are the main methods of money laundering? What should the individual do to avoid being used to passing money-laundering operations?
Remittances are one of the most prominent channels that are used to passing money laundering operations, so you must be careful when an individual requests a money transfer from your account to someone who is unknown for any reason; the authorities might suspect this person. Therefore, beware of transferring funds to unknown persons, as this may contribute to passing a process related to money laundering.
5- How do money-laundering operations take place?
Money Laundering is carried out through complex methods, including the exploitation of services/products of financial and non-financial institutions. An individual may be vulnerable to it because of excessive trust.
6- Are money-laundering operations restricted to cash operations?
The origin of funds to be concealed (laundered) is not restricted to cash, but include assets, property and economic resources, whatever their value, type or manner of ownership.
7- How does the crime of money laundering originate?
Money laundering crime originates due to the need of legitimizing the funds resulting from predicate crimes, including all criminal acts committed inside or outside the Kingdom
8- Is there any legal accountability in case of receiving and depositing funds of unknown origin in his bank account?
Any request to receive funds in your bank account for the purpose of splitting them and transferring them to multiple people, may be subject to a penalty for your possible involvement in money laundering.
9- What should I do about the other ways and methods through which I am exploited to passing money laundering operations?
Do not give others the opportunity to exploit your banking services; such recklessness might contribute to the concealment of the actual beneficiary, and helps enabling criminals to hide behind your name in conducting their illegal operations.
10- What is the penalty for money laundering offense?
A Saudi sentenced to imprisonment for money laundering shall be banned from traveling outside Saudi Arabia for a period equal to the term of imprisonment.
11- Is disclose a source of funding to financial institutions important?
Yes, it is necessary to disclose the source of funds and the actual purpose of the transaction when dealing with financial institutions, as incorrect information may expose the individual to accountability.
12- How does the Anti-Money Laundering and Terrorist Financing Department contribute to protecting the stability of the financial system in the Kingdom?
By setting and developing policies and standards related to AML-CTF and supervising enhancing the financial sector's commitment.
The role of management is as follows:
Responsibilities of AML-CTF Policies:
• Follow up and study international and regulatory practices and standards related to the compliance to AML-CTF.
• Making and developing policies and standards related to compliance (the ten principles issued by the Basel Committee) and circulating them to the financial institutions.
• Cooperating with other competent authorities in local discussions related to AML-CTF compliance policies.
• Follow-up on issues that require cooperating between all parties and organizations with regard to AML-CTF.
Responsibilities of Supervising Anti-Money Laundering and Terrorist Financing:
The Anti-Money Laundering and Terrorist Financing Department follows the best international and regulatory practices and standards to supervise the financial sector, such as:
• Use the risk-based assessment model (risk indicators related to combating money laundering and terrorist financing) to perform the risk assessment.
• Analysis of risk indicators.
• Updating the AML/CFT risk assessment.
• Carrying out inspection visits to financial institutions.
• Monitoring and enhancing the financial sector's compliance with the laws and regulations related to AML-CTF, and verifying the effectiveness and transparency of the implementation.
13- How does the AML-CTF Department verify the financial institutions comply with the AML-CTF requirements?
The compliance of financial institutions are verified through on-site/off-site and other available analytical tools, to ensure the effectiveness of the implementation of requirements. In addition, enhancing the compliance of the financial sector to laws, regulations and the guidance of compliance related the AML-CTF to verify the effectiveness and transparency of the implementation to ensure the following:
• Applying the regulating compliance and its risks.
• Preparing programs and manuals that effectively insure the implementation of laws regulations.
• Assessing and following up the risks of non-compliance with activities, products and services.
• Processing and following up a correction action plane of observations and violations arising.
• Assisting in evaluating the level of compliance of banks operating in the Kingdom to compliance policies, customer acceptance policy, KYC policy, and ALM-CTF.
• Analyzing the periodic and annual compliance reports, which requested by the institution in regard AML-CTF compliance and analyzing results.