Amendments to the anti-money laundering law in Saudi Arabia

Amendments to the anti-money laundering law in Saudi Arabia

The Kingdom of Saudi Arabia continues to develop its financial and regulatory systems to enhance transparency and combat financial crimes. The amendment of the Anti-Money Laundering System and its executive regulations comes within these efforts to keep pace with local and international developments. 

The new amendments include significant updates to obligations, procedures, and penalties, enhancing compliance and protecting financial transactions from legal risks.

It is the system that criminalizes money laundering by defining the acts that constitute a crime punishable by the system, the elements of the crime, the preventive measures that financial institutions must take, and the penalties imposed on violators of the system’s provisions.

What is the purpose of amending the anti-money laundering law?

• Promoting the principles of transparency and governance.
• Supporting national efforts to combat financial crimes.
• Raising the level of efficiency in the financial sector.
• Keeping pace with international best practices and standards in combating money laundering.
• Expanding the scope of confiscation of seized items.
• Reorganizing the powers of regulatory authorities in the field of combating money laundering.

The most prominent amendments to the Anti-Money Laundering Law and its executive regulations

Delete the phrase “non-profit organizations”

The new amendments to the Anti-Money Laundering Law stipulate the deletion of the phrase “non-profit organizations” from the following articles 14, 15, 16 and 18.

Non-Saudi deportation

Article 28 of the system was amended by adding an exception to the entry ban for non-Saudis convicted of the crime of money laundering, to read as follows:

1. A Saudi sentenced to prison for money laundering is prohibited from traveling outside the Kingdom for a period similar to the prison term for which he was sentenced.
2. A non-Saudi convicted of money laundering shall be deported from the Kingdom after serving his sentence and shall be prohibited from entering it except to perform the Hajj or Umrah rituals in accordance with the provisions regulating this. 

Confiscation of seized items

The new amendments to Article 33 of the system stipulate expanding the process of confiscating funds at the request of the Public Prosecution to become as follows:

• Without prejudice to the rights of bona fide third parties, the following shall be confiscated by a judicial ruling in the event of conviction for a money laundering crime or a predicate crime:
  • laundered money.
  • If the proceeds are mixed with funds acquired from legitimate sources, an amount equivalent to their estimated value will be confiscated.
  • Media.
• Without prejudice to the rights of bona fide third parties, other funds of the perpetrator of a money laundering crime or a predicate crime, which are disproportionate to his legitimate income, shall be confiscated by a judicial ruling – at the request of the Public Prosecution – if they are found to be derived from criminal behavior unless their legitimacy is proven.
• The competent court shall order the confiscation of funds related to a money laundering crime, regardless of whether they are in the possession or ownership of the perpetrator or another party. It may not be confiscated if its owner proves that:
  • He received it in exchange for a fair price or for providing a service commensurate with its value.
  • He obtained it based on other legitimate reasons and was ignorant of its illicit source.
• To the competent court to invalidate some activities or actions or prevent their implementation –whether contractual or otherwise – whenever the parties or one of them knows –or a similar person would know – that these activities or actions would affect the ability of the competent authorities to recover the funds subject to confiscation.

Adding a new article to the anti-money laundering law

Adding a new article to the anti-money laundering law

A new article, arranged 49 bis, has been added, stating that “The Permanent Committee for Combating Money Laundering shall develop and coordinate general national risk-based policies in the field of combating money laundering, review and update these policies periodically, take the necessary measures regarding them, and develop them on the basis of international obligations, requirements, and developments, as well as assess money laundering risks, including high-risk countries. The Governor of the Central Bank of Saudi Arabia shall issue the internal regulations of the Permanent Committee for Combating Money Laundering”

Amending the Anti-Money Laundering System Regulations

Article 50 of the system was amended to give the Head of State Security the authority to issue and amend the Anti-Money Laundering System regulations in agreement with three government officials to read as follows: 

The Head of State Security shall issue and amend the regulations, in agreement with:

• Minister of Finance.
• Attorney General.
• Governor of the Saudi Central Bank

Criminal lawyer from the office of lawyer Abdul Majeed Al Rashid

Criminal lawyer from the office of lawyer Abdul Majeed Al Rashid for legal consultations

Dealing with money laundering cases and associated regulatory obligations requires a thorough legal understanding to avoid potential violations and penalties. 

Through the office of lawyer Abdul Majeed Al Rashid, you can communicate with a skilled lawyer in criminal cases to help you provide legal advice and follow up on procedures professionally.