Regulatory Alerts2021-06-27
Saudi Central Bank Circular on Adding a Suspicious Commercial Concealment Index
The Saudi Central Bank (SAMA) issued this circular to mandate banks, savings institutions, and payment companies in the Kingdom to develop technical systems that detect commercial concealment operations. The directive requires these entities to report specific suspicion cases, including expatriate workers withdrawing or depositing checks from non-employer entities and receiving financial transfers outside their employment, to the Financial Investigations Department. Implemented effective immediately, the update aligns with prior instructions while preserving operational ease and preventing the emergence of informal financial channels.
Saudi Central Bank (SAMA)
Circular
To the Esteemed,
Gentlemen:
Peace be upon you, and God's mercy and blessings.
Subject: Adding a Suspicious Index for Commercial Concealment.
In continuation of the Saudi Central Bank instructions communicated via Circular No. (20.64692) dated 13/09/1442 AH,
regarding the establishment of a position dedicated to combating commercial concealment, analyzing related suspicion cases, and reporting them.
And in continuation of the ongoing work between the Saudi Central Bank and the National Program for Combating Commercial Concealment in fighting commercial concealment crimes.
The Saudi Central Bank emphasizes the importance of developing technical systems for banks, savings institutions, and payment companies,
to support the detection of commercial concealment operations, in accordance with all suspicion indicators for such operations outlined in the aforementioned Circular,
as well as including cases where an expatriate worker withdraws or deposits a check drawn against an entity other than their employer,
or receives a financial transfer from an entity other than their employer, to be among the cases required to be reported to the Financial Investigations Department.
For viewing and implementation effective from its date, while ensuring no impact on business ease
and that it does not lead to the creation of informal channels for conducting financial transactions.
Yours sincerely,
Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision
Distribution Scope:
- Banks and savings institutions operating in the Kingdom.
- Payment companies operating in the Kingdom.
No.: 42080532
Date: 1442/11/18
Attachments: None
P.O. Box 2992 Riyadh 11169, Kingdom of Saudi Arabia Tel: +966 11 463 3000
P.O. Box: 2992, Riyadh 11169 Kingdom of Saudi Arabia Tel: +966 11 463 3000