Regulatory Alerts2025-12-31
Circular on Guidance for Assessing Business Risks Related to Money Laundering, Terrorist Financing, and Proliferation Financing
The Saudi Central Bank issued this circular to establish a comprehensive guidance framework requiring all supervised financial institutions to implement minimum factors and standardized methodologies for assessing business risks related to money laundering, terrorist financing, and proliferation financing. The guidance outlines key governance responsibilities, risk assessment stages tailored to institutional activities and operational scale, and flexible controls that complement existing regulatory obligations without restricting additional compliance measures. Financial institutions must adopt these risk assessment methods and publish their adopted approaches on the Bank’s official website to ensure ongoing regulatory alignment and effective risk mitigation.