The terms and phrases mentioned below, wherever they appear in this Law, shall have the meanings specified next to each of them unless the context requires otherwise:

• Money Laundering: Committing any act or attempting to do so with the intent of concealing or disguising the true origin of funds acquired in violation of Sharia or the Law, and making them appear to be of legitimate source.

• Assets: Any type of property or possessions, whether tangible or intangible, movable or immovable, as well as legal documents and certificates that prove ownership of the assets or any rights related to them.

• Proceeds: Any money derived or obtained - directly or indirectly - from committing a crime punishable under the provisions of this Law.

• Instruments: Anything used or prepared for use in any form in committing a crime punishable under the provisions of this Law.

• Financial and Non-Financial Institutions: Any establishment in the Kingdom that engages in one or more financial, commercial, or economic activities, such as banks, exchange shops, investment or insurance companies, commercial enterprises, individual establishments, professional activities, or any similar activity defined by the Implementing Regulation of this Law.

• Transaction: Any action involving assets or properties or cash or in-kind proceeds. This includes, for example: deposit, withdrawal, transfer, sale, purchase, lending, exchange, or the use of deposit safes and similar actions as defined by the Implementing Regulation of this Law.

• Criminal Activity: Any activity that constitutes a crime punishable under Sharia or the Law, including the financing of terrorism, terrorist acts, and terrorist organizations.

• Provisional Seizure: The temporary prohibition on transferring, converting, or disposing of funds and proceeds, or moving them, or placing them under custody or seizing them temporarily, based on an order issued by a court or an authority competent in this regard.

• Confiscation: The permanent deprivation and removal of funds or proceeds or instruments used in the crime based on a judicial ruling issued by a competent court.

• Regulatory Authority: The government agency responsible for granting licenses to financial and non-financial institutions, and also responsible for monitoring or supervising those institutions.

• Competent Authority: Any government body tasked with combating money laundering operations according to its jurisdiction.

A person is considered to have committed the crime of money laundering if they perform any of the following actions:

• A- Conducting any transaction involving funds or proceeds, knowing that they are derived from criminal activity or an unlawful or irregular source.

• B- Transferring funds or proceeds, or acquiring, using, holding, receiving, or converting them, knowing that they are derived from criminal activity or an unlawful or irregular source.

• C- Concealing or disguising the nature of the funds or proceeds, or their source, movement, ownership, location, or method of action, knowing that they are derived from criminal activity or an unlawful or irregular source.

• D- Financing terrorism, terrorist acts, and terrorist organizations.

• E- Participating through agreement, assistance, incitement, providing advice or counsel, facilitating, colluding, concealing, or attempting to commit any of the actions specified in this article.

A person is considered to have committed the crime of money laundering if they perform any of the acts mentioned in Article (2) of this law or participate in them, including the chairpersons of the boards of directors of financial and non-financial institutions, their members, owners, employees, authorized representatives, auditors, or users acting in accordance with these capacities, without prejudice to the criminal liability of financial and non-financial institutions for that crime if committed in their name or for their account.

Financial and non-financial institutions must not conduct any financial, commercial, or other transactions in the name of an anonymous or fictitious entity. They must verify the identity of the parties involved based on official documents, at the beginning of the dealings with these clients or when conducting commercial transactions with them directly or on their behalf. These institutions must verify the official documents of entities with legal personality, which clarify the name of the establishment, its address, the names of its owners, and the authorized signatories, as well as other details specified in the implementing regulation of this law.

Financial and non-financial institutions are required to retain - for a period of no less than ten years from the date of the transaction's completion or account closure - all records and documents that clarify financial transactions and commercial and monetary deals, whether domestic or international, as well as maintaining files of accounts, commercial correspondence, and copies of personal identification documents.

Financial and non-financial institutions must establish precautionary measures and internal controls to detect and thwart any of the crimes specified in this Law, and comply with the instructions issued by the relevant regulatory authorities in this field.

Financial and non-financial institutions - when there are sufficient indicators and evidence of conducting a complex, large, or unusual transaction, or a transaction that raises doubts and suspicions about its nature and purpose, or that is related to money laundering, terrorist financing, terrorist acts, or terrorist organizations - must promptly take the following procedures:

• A- Notify the Financial Intelligence Unit as stipulated in Article (11) of this law about that transaction immediately.

• B- Prepare a report that includes all available data and information regarding those transactions and the related parties, and provide it to the Financial Intelligence Unit.

Notwithstanding the provisions related to banking secrecy, financial and non-financial institutions are required to provide documents, records, and information to the judiciary or the competent authority upon request.

Financial and non-financial institutions, their employees, and others obligated by the provisions of this law must not warn clients or allow them to be warned, or warn other related parties about any suspicions regarding their activities.

Financial and non-financial institutions must establish programs to combat money laundering, which shall include at a minimum the following:

• A- Developing and implementing internal policies, plans, procedures, and controls, including appointing qualified personnel at the senior management level to enforce them.

• B- Establishing internal auditing and review systems concerned with monitoring the availability of essential requirements in the field of anti-money laundering.

• C- Preparing ongoing training programs for specialized employees to keep them informed of developments in the field of money laundering, thereby enhancing their abilities to recognize such operations, their patterns, and how to counter them.