Regulatory Alerts2017-09-20
AML/CTF Rule (16) CIT
The Saudi Arabian Monetary Authority (SAMA) requires all licensed banks and exchange offices operating in the Kingdom to update their internal compliance procedures to align with the amended Article 16 of the Anti-Money Laundering Law. This regulatory update renumbered the former Article 14 to Article 16, added "Negotiable Financial Instruments" to the scope, and replaced the term "Disclosure" with "Declaration" for cross-border cash and precious metal movements. Financial institutions must immediately revise their reporting protocols and internal directives to ensure full conformity with these statutory changes.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Arabian Monetary Authority Headquarters
Banking Policies Department
Ref: 371000066843 Date: 14/06/1437 AH Attachments:
Circular
To: .................................................................................... Dear Sir/Madam,
Subject: Regulation of Cash Transfers for Banks and Exchange Offices Operating in the Kingdom in accordance with the requirements of Article (16) of the Anti-Money Laundering Law.
With reference to the Authority's Circular No. 15474/M.A.T/306 dated 12/04/1428 AH, regarding the necessary actions by the General Authority of Customs to begin implementing the disclosure procedures for cash and precious metals when departing from and arriving to the Kingdom, in accordance with Article (14) of the Anti-Money Laundering Law issued by Royal Decree No. M/39 dated 25/06/1424 AH, and the Authority's directives regarding the regulation of cash entry and exit by licensed banks and money changers through border crossings. And with reference to the Authority's Circular No. 341000074807 dated 15/06/1434 AH, regarding amendments to the Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 11/05/1433 AH and its Executive Regulations.
The Authority wishes to reaffirm the regulatory requirements contained in the aforementioned circular, and wishes to inform you that Article Fourteen of the Anti-Money Laundering Law issued by Royal Decree No. M/39 dated 25/06/1424 AH has been amended to become Article Sixteen in the amended Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 11/05/1433 AH. A paragraph regarding "Negotiable Financial Instruments" has been added, and the term "Disclosure" has been replaced with the term "Declaration". Therefore, we request your compliance and necessary action to align internal instructions and procedures with the amendments contained in Article Sixteen of the Anti-Money Laundering Law and its Executive Regulations.
Yours sincerely,
Thamir bin Mohammed Al-Eissa General Manager, Banking Supervision
Distribution Scope:
- Banks operating in the Kingdom.
- Category (A) and (B) exchange institutions and companies.
P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414