• 1/1- Among the assets in paragraph (2) of this article are financial instruments that are negotiable to their bearer or endorsed without restrictions in favor of an unknown beneficiary, or for which ownership rights are acquired upon delivery, including documents that do not include the name of the beneficiary, such as tourist networks, checks, promissory notes, and payment orders.

• 2/1- The activities mentioned in paragraph (5) of this article include the following:

  • أ. Accepting deposits, borrowing, opening accounts.

  • ب. Insurance, leasing.

  • ج. Money transfer services.

  • د. Issuing and managing payment instruments (credit cards, travel checks, bank cards).

  • هـ. Issuing guarantees and appropriations.

  • و. Trading and dealing in securities or engaging in foreign currencies.

  • ز. Commercial and financial mediation.

  • ج. Real estate transactions and trust services.

  • ط. Dealing in precious metals or gemstones or rare goods such as antiques.

  • ي. Trading in high-value goods such as luxury cars and items offered at auction houses.

  • ك. Legal services and corporate services.

  • ل. Accounting and auditing services.

• 3/1 - The operations mentioned in paragraph (6) of this article include the following:

  • A- Mortgage.

  • B- Transfers between accounts.

  • C- Gift.

  • د - Currency exchange.

  • E- Trading in securities.

  • F- Authentication of contracts and powers of attorney by notary offices.

• 4/1 - The competent authority for provisional seizure mentioned in paragraph (8) of the first article is the Public Prosecution and Investigation Authority in accordance with what is stipulated in Article Twelve of the Anti-Money Laundering Law and its executive provisions.

• 1/2- It includes the financing of terrorism, terrorist acts, and terrorist organizations the funds generated from legitimate sources.

• 2/2- Knowledge is inferred from the objective and factual circumstances and conditions to be an element of the criminal intent constituting a crime as stipulated in this article.

• 3/2- Examples of criminal activity or unlawful or irregular sources, the engagement with the funds resulting from which is considered money laundering, include the following:

  • أ. Crimes stipulated in Article One of the Implementing Regulation of the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988 ratified by Council of Ministers Resolution No. (168) dated 11/8/1419 AH.

  • ب. Organized crimes mentioned in the United Nations Convention Against Transnational Organized Crime (Palermo Convention) issued in December 2000 and ratified by Royal Decree No. (M/20) dated 24/3/1425 AH.

  • ج. Crimes stipulated in paragraph (5) of Article Two of the United Nations Convention for the Suppression of the Financing of Terrorism ratified by Royal Decree No. (M/62) dated 18/7/1428 AH.

  • د. Smuggling, manufacturing, trading, or promoting intoxicants.

  • هـ. Crimes of counterfeiting and forgery of currency stipulated in Royal Decree No. (12) dated 12/7/1379 AH.

  • و. Forgery crimes stipulated in the Anti-Forgery Law issued by Royal Decree No. (114) dated 26/11/1380 AH and amended by Royal Decree No. (53) dated 6/11/1382 AH.

  • ز. Bribery crimes stipulated in the Anti-Bribery Law issued by Royal Decree No. (36) dated 29/12/1412 AH.

  • ح. Smuggling of weapons, ammunition, or explosives, or manufacturing or trading in them.

  • ط. Prostitution or preparing places for prostitution or habitual engagement in debauchery.

  • ي. Robbery or armed robbery.

  • ك. Thefts.

  • ل. Fraud and deception.

  • م. Embezzlement of public funds belonging to government entities or contributed by the state, as well as private entities such as companies and commercial institutions.

  • ن. Engaging in banking activities in an irregular manner as stipulated in Article Two of the Banking Control Law issued by Royal Decree No. (5) dated 22/2/1386 AH.

  • س. Practicing mediation in securities transactions without a license as stipulated in Article (31) and trading based on insider information as stipulated in Article (50) of the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424 AH.

  • ع. Practicing mediation in insurance transactions without a license as stipulated in Article (18) of the Cooperative Insurance Companies Control Law issued by Royal Decree No. (M/32) dated 2/6/1424 AH.

  • ف. Crimes related to commercial activities such as fraud in goods, weights, prices, counterfeiting goods, and commercial concealment as stipulated in Article One of the Anti-Commercial Concealment Law issued by Royal Decree No. (M/46) dated 16/10/1406 AH.

  • ص. Customs smuggling as mentioned in the Unified Customs Law for the GCC countries issued by Royal Decree No. (M/41) dated 3/11/1423 AH.

  • ق. Tax evasion crimes.

1/3- The provisions of this Law and its executive regulations shall apply to financial and non-financial institutions established in the existing free zones within the territory of the Kingdom.

2/3- The provisions of this Law and its executive regulations shall apply to financial and non-financial institutions in the Kingdom and their branches and affiliated institutions both inside and outside the Kingdom.

3/3- The crime must have been committed in the name of or for the account of financial and non-financial institutions with the aim of achieving a direct or indirect material or moral benefit.

• 1/4- Financial and non-financial institutions and practitioners of specified non-financial professions must fully comply with the instructions issued by regulatory authorities such as the Ministry of Justice, the Ministry of Commerce and Industry, the Saudi Arabian Monetary Authority, and the Capital Market Authority regarding the Know Your Customer principle and due diligence, which must include at a minimum the following:

  • 1/1/4 a Verification of the identity of all permanent or occasional clients with financial and non-financial institutions by reviewing original, valid documents legally recognized for identity verification as follows:

  • A- Saudi citizens:-

    • - National ID card or family register.

    • - The person's address, place of residence, and workplace.

  • B- Individual expatriates:-

    • - Residence permit or five-year residence card, or passport, or national ID for citizens of the Gulf Cooperation Council countries, or diplomatic card for diplomats.

    • - The person's address, place of residence, and workplace.

• C- Legal entities:

  • - Licensed companies, institutions, and shops: -

  • - Commercial register issued by the Ministry of Commerce and Industry.

  • - License issued by the Ministry of Municipal and Rural Affairs for service institutions and private shops.

  • - Articles of incorporation, if available.

  • - National ID card of the Saudi citizen owner of the commercial establishment or the licensed service company to ensure that the merchant's name in the commercial register or licenses matches their name and other details in the national ID card and that it is valid.

  • - A list of the individuals who own the establishment as mentioned in the articles of incorporation and any amendments, if available, along with a copy of each person's ID.

  • - A list of individuals authorized by the owner to operate the accounts as stated in the commercial register document or by a power of attorney issued by a public notary or a bank-issued authorization, along with a copy of each person's ID.

  • Resident companies:

    • - A copy of the commercial register issued by the Ministry of Commerce and Industry.

    • - A copy of the articles of incorporation and its appendices.

    • - A copy of the activity license.

    • - A copy of the ID of the responsible manager.

    • - A power of attorney issued by a public notary or a special authorization from the person or persons who have the authority to delegate individuals to sign according to the articles of incorporation.

    • - A copy of the IDs of the owners of the establishment mentioned in the articles of incorporation and any amendments.

• 2/4- Identification of clients and beneficial owners and verification of their legal status for all natural persons who hold ownership or ultimate control or who conduct transactions on their behalf, prior to opening an account or commencing dealings with any financial or non-financial institutions.

• 3/4- Updating client data and verifying it periodically or when doubts arise regarding the accuracy or sufficiency of the data previously obtained at any stage of dealings with the client or beneficial owner, or when there is suspicion of money laundering or terrorist financing, regardless of the transaction amount.

• 4/4- Verifying whether the client is acting on behalf of another person and taking necessary measures to identify and verify that person's identity, with special attention to accounts and business relationships managed under a power of attorney.

• 5/4- Enhancing measures and procedures for intensive due diligence towards clients, business relationships, and high-risk transactions.

• 6/4- Simplified due diligence measures are not accepted in cases of suspicion of money laundering or terrorist financing or in the presence of certain circumstances that contain high risks.

• 7/4- Attorneys, accountants, brokers, and others in similar positions cannot invoke client confidentiality when fulfilling identity verification data as mentioned above.

• 1/5- Financial and non-financial institutions shall retain a copy of the identification of their clients, along with all documents related to the transactions they conduct.

• 2/5- Financial and non-financial institutions shall maintain a record that includes all details of the transactions they carry out until it is confirmed that:-

  • A- The requirements of the Anti-Money Laundering Law are met.

  • B- The Financial Intelligence Unit or investigative authorities or judicial authorities can trace each transaction and reconstruct it.

  • C- They respond within the specified time frame to any inquiries requested by the Financial Intelligence Unit or investigative authorities or judicial authorities.

• 3/5- When financial and non-financial institutions are required by the provisions of this law to retain records or documents for a period exceeding the statutory duration, they must retain them until the end of the period specified in the claim.

• 1/6- The relevant regulatory authorities shall establish the instructions and rules that must be applied regarding the combating of the crimes specified in this law and take the necessary measures to ensure that financial and non-financial institutions comply with the laws, rules, and regulations established by law to combat money laundering and the financing of terrorism.

• 2/6- The precautionary measures and internal controls that financial and non-financial institutions implement to detect the crimes specified in this article include the following:

  • A- Establishing written and effective controls that prevent these institutions from being exploited in money laundering and financing terrorism operations, assist in detecting suspicious transactions, and prevent the exploitation of information and technological developments to carry out such operations, and organize mechanisms to deal with any risks related to business relationships or transactions that do not occur face-to-face.

  • B- The instructions issued by the regulatory authority shall be the minimum instructions that must be applied.

  • C- Conducting follow-up and oversight to verify the application of the instructions and ensure the integrity of the procedures.

  • D- These controls shall be updated periodically to keep pace with the evolution of money laundering or financing terrorism operations.

• 1/7- Financial and non-financial institutions shall establish indicators that suggest the existence of suspicious money laundering or terrorism financing activities, and they must continuously update these indicators according to the developments and diversifications in the methods of committing such activities, while adhering to what is issued by the regulatory authorities in this regard, with special attention given to all operations that exhibit unusual patterns that do not have a clear or apparent economic or legal purpose.

• 2/7- Financial and non-financial institutions shall notify the Financial Intelligence Unit of all suspicious transactions, including any attempts related to conducting such transactions.

• 3/7-  The notification to the Financial Intelligence Unit shall be made using the form approved by the unit, and the notification must include at a minimum the following information:-

  • A- Names of the accused persons and information about their addresses and phone numbers.

  • B- A statement of the suspicious transaction, its parties, the circumstances of its discovery, and its current status.

  • C- Identification of the amount involved in the suspicious transaction and the related bank or investment accounts.

  • D- The reasons and grounds for suspicion relied upon by the reporting employee.

• 4/7- The report prepared by financial and non-financial institutions regarding the reported transactions shall consider the following:

  • أ - Financial institutions shall submit the report to the Financial Intelligence Unit within ten days from the date of notification, and it must include the following:

    • - Account statements for a period of six months.

    • - Copies of the documents attached to the account opening documents.

    • - Data regarding the nature of the reported transactions.

    • - Indicators and justifications for suspicion and supporting documents.

  • B- Non-financial institutions shall submit their report on the notifications upon request from the unit within two weeks from the date of the request, and the request may include the following:

    • - Information about the reported party.

    • - A statement of the commercial or financial transactions of the reported party or related parties.

    • - Justifications and indicators of suspicion supported by documents.

1/8- The judiciary authority, the Public Prosecution and Investigation Authority, or the Financial Intelligence Unit may request documents, records, and information from financial and non-financial institutions through the Anti-Money Laundering Unit at the Saudi Arabian Monetary Authority for financial institutions under its supervision, through the Anti-Money Laundering Unit at the Ministry of Commerce for non-financial institutions, through the Anti-Money Laundering Unit at the Capital Market Authority for financial institutions under its supervision, and through the Ministry of Justice for fixed assets.
2/8- All documents, records, and information from financial and non-financial institutions must be provided to the judiciary authority, the Public Prosecution and Investigation Authority, or the Financial Intelligence Unit upon request through the Anti-Money Laundering Unit at the Saudi Arabian Monetary Authority for financial institutions under its supervision, through the Anti-Money Laundering Unit at the Ministry of Commerce for non-financial institutions, through the Anti-Money Laundering Unit at the Capital Market Authority for financial institutions under its supervision, and through the Ministry of Justice for fixed assets urgently.
3/8- Financial and non-financial institutions may not invoke the principle of confidentiality of accounts or the identity of clients or information recorded under any other system.

• 1/9- In applying this article and to avoid actions that may alert clients or others, the following should be considered:

  • A- The formal acceptance of suspicious transactions and not rejecting them.

  • B- Avoiding the presentation of alternatives to clients or providing advice or counsel to circumvent the application of instructions regarding the transactions they conduct.

  • C- Maintaining the confidentiality of reports about clients or suspicious transactions and the related information submitted to the Financial Intelligence Unit.

  • D- Ensuring that contacting clients or external parties to inquire about the nature of transactions does not raise suspicions about them.

  • E- Not notifying clients that their transactions are under review or monitoring, and so forth.

• 1/10- The General Manager or their delegate in financial and non-financial institutions is responsible for implementing and developing the policies, plans, procedures, and internal controls related to combating money laundering or financing terrorism.

• 2/10- Financial and non-financial institutions shall appoint an employee or a department responsible for reporting and communicating with the Financial Intelligence Unit as stipulated in Article Eleven of this Law. For small non-financial individual institutions, the reporting shall be done by the owner of the institution or their delegate.

• 3/10-  Financial and non-financial institutions shall designate a specialized supervisory unit to conduct monitoring and internal auditing programs regarding the affairs of combating money laundering or financing terrorism, ensuring that the external auditor, if present, includes a specific program assessing the compliance of financial and non-financial institutions with the policies for combating money laundering or financing terrorism.

• 4/10- Financial and non-financial institutions shall seek assistance from the relevant supervisory authorities when establishing means to ensure compliance with the laws, regulations, and rules established for combating money laundering or financing terrorism.

• 5/10-  Financial and non-financial institutions shall develop plans, programs, and financial budgets dedicated to training and qualifying their employees in the field of combating money laundering or financing terrorism according to their size and activity, in coordination with the supervisory authorities overseeing them.

• 6/10- Specialized local or foreign institutes shall be utilized in implementing preparation, qualification, and training programs in the field of combating money laundering or financing terrorism, ensuring that the training programs include the following:-

• A- Agreements, laws, regulations, and instructions related to combating money laundering or financing terrorism.

  • B- Policies and regulations of the supervisory authorities regarding money laundering or financing terrorism operations.

  • C- Developments in the field of money laundering or financing terrorism operations and other suspicious activities, how to identify those operations and their patterns, and how to counter them.

  • D- The criminal and civil responsibility of each employee under the relevant laws, regulations, and instructions.