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.
Saudi Central Bank Unit Item No. 472039915 Date: 1447/07/11 AH Attachments: 16 pages
To the Esteemed Financial Institutions, Circular Greetings, Peace, mercy of God and His blessings.
Subject: Guidance on Assessing Business Risks Related to Money Laundering, Terrorist Financing, and Proliferation Financing.
In reference to the Saudi Central Bank's authority to issue relevant instructions regarding financial institutions and their operations under its supervision, based on the Saudi Central Bank System issued by Royal Decree No. (M63) dated 11/4/2441 AH, the Anti-Money Laundering System issued by Royal Decree No. (M20) dated 5/2/1439 AH, the Anti-Terrorism and Financing of Terrorism Crimes System issued by Royal Decree No. (M12) dated 12/2/1439 AH, and related systems and regulations.
Attached is the Guidance on Assessing Business Risks Related to Money Laundering, Terrorist Financing, and Proliferation Financing, which aims to establish the minimum factors that financial institutions must consider when conducting their business risk assessment. The Guidance includes the key standards and controls to be observed during this process, as well as risk assessment methods according to the nature of the financial institution's activities, the size of its operations, and its level of risk exposure. It is emphasized that this Guidance does not impose a single standardized methodology for risk assessment, nor are the factors, standards, and controls specified herein exclusive or restrictive of the obligations imposed on financial institutions under related systems, regulations, and instructions concerning money laundering, terrorist financing, and proliferation financing. Furthermore, this Guidance does not prevent financial institutions from adopting any additional measures necessary to fulfill their obligations regarding money laundering, terrorist financing, and proliferation financing.
For information and action from the date of publication of the Guidance on the Bank's website.
Yours sincerely, Distribution Scope: All financial institutions under the supervision and oversight of the Saudi Central Bank.
Riyadh 11691, Kingdom of Saudi Arabia Abdullah bin Saleh Al-Humaid Deputy Governor for Financial Behavior
Guidance on Assessing Business Risks Related to Money Laundering, Terrorist Financing, and Proliferation Financing First Edition - Rajab 1447 AH / December 2025 CE
Important Note: To keep pace with updates and amendments to instructions issued by the Saudi Central Bank, the Bank emphasizes continuous reliance on the version published on its official website: www.sama.gov.sa.
Saudi Central Bank - SAMA Saudi Central Bank
Chapter 1: Definitions and General Provisions Table of Contents Chapter 2: Governance and Financial Institution Responsibilities Chapter 3: Stages of Financial Institutions' Business Risk Assessment Chapter 4: Final Provisions
Page References: 3, 7, 16/2