Under the anti money laundering law Saudi Arabia, money laundering has emerged as one of the most serious economic crimes that threaten the stability of economies and the security of societies, both domestically and internationally, due to its direct impact on the integrity of the financial system, distortion of economic flows, and facilitation of illegal activities.
The Kingdom of Saudi Arabia places the highest priority on combating this crime, considering anti-money laundering efforts a national priority aimed at protecting the national financial system, promoting a transparent economic environment, and supporting sustainable growth.

Anti Money Laundering Law Saudi Arabia

Money laundering is considered one of the most serious crimes that threaten the integrity of the economic system and financial security of the Kingdom of Saudi Arabia, due to its direct and harmful impact on economic stability and society as a whole. In view of the gravity of this offense, the Saudi legislator has regulated its provisions and imposed strict penalties under the anti money laundering law Saudi Arabia.

Learn about : saudi labor law article 81

-Pursuant to the anti money laundering law Saudi Arabia, any person convicted of committing a money laundering offense shall be punished by imprisonment for a period ranging from two to fifteen years, and/or a financial fine of up to seven million Saudi Riyals, with the court having discretion to impose both penalties depending on the severity and circumstances of the crime. The judgment shall also include the confiscation of funds, assets, and proceeds derived from or connected to the crime, or their equivalent value if seizure is not possible.

-In addition, a person convicted of money laundering shall be prohibited from traveling outside the Kingdom for a period equal to the term of imprisonment imposed. If the convicted person is a non-Saudi national, they shall be deported from the Kingdom after serving the sentence, in accordance with the anti money laundering law Saudi Arabia.

Penalties for money laundering offenses shall be aggravated in certain circumstances, as stipulated by the Law, including but not limited to:

• Where the offense is committed by a public official by abusing their position or authority.
• Where the offender is a repeat offender or has previously been convicted of a money laundering offense or another related crime.
• Where the offense is committed using organized criminal methods or within the framework of an organized criminal group.

For further details and applicable regulations, reference may be made to the laws and guidelines issued by the competent authorities, particularly those responsible for combating terrorism and financial crimes in the Kingdom of Saudi Arabia.

learn about : marriage in saudi arabia for foreigners

Money laundering punishment in Saudi Arabia

Money laundering is classified as one of the most serious economic crimes due to its significant adverse impact on the integrity and stability of the financial and economic system. In response to the gravity of this offense, the Kingdom of Saudi Arabia has adopted strict and deterrent penalties against those who commit such crimes.

Pursuant to the anti money laundering law Saudi Arabia in force in the Kingdom, the penalties prescribed for money laundering offenses include:

• Imprisonment for a period of (up to fifteen years), depending on the severity and circumstances of the offense.
• Financial fines of up to seven million Saudi Riyals.
• Confiscation of funds and assets derived from or related to money laundering activities.
• Prohibition from engaging in commercial or professional activities for a specified period as determined by the competent authority.
• Deportation of non-Saudi offenders from the Kingdom after serving the imposed sentence.

These measures under the anti money laundering law Saudi Arabia reflect the Kingdom’s commitment to safeguarding financial integrity, protecting the national economy, and complying with international standards in combating money laundering.

Implementing Regulations of the Anti Money Laundering Law

The Implementing Regulations of the Anti-Money Laundering Law define the scope of persons and entities subject to its provisions and obligate them to comply with its regulatory requirements, as outlined below:

First: Entities Subject to the Law

The provisions of the Law apply to several categories of legal and natural persons, including in particular:

• Financial institutions, such as banks, money exchange companies, insurance companies, investment firms, and other entities engaged in financial activities.
• Designated Non-Financial Businesses and Professions (DNFBPs), including lawyers, certified public accountants, dealers in gold and jewelry, real estate brokers and traders, and other professions exposed to money laundering risks.
• Non-profit organizations, including charitable associations, religious institutions, and other non-profit entities.

Second: Obligation to Establish Anti-Money Laundering Programs

The Regulations require all persons and entities subject to the Law to develop, implement, and maintain effective internal anti-money laundering programs commensurate with the nature and scale of their activities. Such programs shall include, in particular:

• Money laundering risk assessment, through identifying and evaluating the level of exposure of the institution or profession to money laundering risks.
• Customer due diligence and identification procedures, including verification of customer identity upon establishing a business relationship or conducting transactions.
• Suspicious transaction reporting mechanisms, by reporting to the competent authority, represented by the Financial Investigation Unit, any transactions suspected of being related to money laundering or associated crimes.
• Record-keeping requirements, including the retention of customer information and transaction records for a specified period in accordance with applicable regulations.
• Training and awareness, whereby obligated entities must provide periodic training to their employees on the provisions of the Anti-Money Laundering Law, methods of detecting suspicious activities, and compliance procedures.

Third: Penalties and Sanctions

The Regulations stipulate the imposition of statutory penalties on obligated persons and entities in the event of any violation of the provisions of the Anti-Money Laundering Law or failure to comply with the obligations set forth therein, without prejudice to any more severe penalties prescribed under other applicable laws.

How to Report Money Laundering in Saudi Arabia

You can report money laundering offenses easily and with complete confidentiality through the official channels, in accordance with the anti money laundering law Saudi Arabia, including:

Ministry of Interior by calling the emergency number 999 or via the “Kollona Amn” application.
National Anti-Corruption Commission (“Nazaha”) by calling 980 or through their website nazaha.gov.sa.

Electronic reporting is the fastest option, whether through the Ministry’s website, the Nazaha website, or the designated mobile applications, as stipulated under the anti money laundering law Saudi Arabia. Reports can also be submitted in person by visiting the offices of the competent authorities.

When reporting, you are required to provide all available information, such as names, account numbers, and any relevant documents or evidence, while ensuring that all your personal data remains strictly confidential. After submitting your report, you will receive a reference number to track the status of your report. The competent authority may contact you for additional information if necessary.

If you are an employee at a financial institution, you must immediately report any suspected money laundering through your institution’s Fraud and Compliance Department, in accordance with internal procedures and the provisions of the anti money laundering law Saudi Arabia.

Contact Information for a Leading Money Laundering Crimes Lawyer

If you are looking for a top lawyer specializing in money laundering crimes in the Kingdom of Saudi Arabia, you can reach out at either +966 550600204 or +966 551020060.

This lawyer is recognized as one of the foremost experts in handling money laundering crimes, possessing extensive and exceptional experience in managing the most complex and challenging legal cases. He provides optimal legal solutions to protect clients’ rights and achieve the best possible outcomes before the courts and relevant authorities

Conclusion:

Under the anti money laundering law Saudi Arabia, the Kingdom of Saudi Arabia’s efforts to combat money laundering demonstrate its firm commitment to safeguarding the financial system.
Etqan Law Firm stands out as a trusted partner for organizations and individuals seeking professional legal advice in the field of anti-money laundering and financial compliance, ensuring adherence to best practices and the highest legal standards.

The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need.

• You can reach their team at the following mobile numbers: +966 550600204, +966 551020060.

Additionally, feel free to visit our branches located at:

• Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
• Riyadh: King Abdulaziz Street, across from the Kingdom Tower
• Dammam: Al-Ashri’a Street, Al-Badeea, Dammam 32415.

FAQ: