Regulatory Alerts2017-08-09
Update on Correspondent Banking Annex of Guidelines for Sound Management of Risks Related to Money Laundering and Terrorist Financing
The Saudi Central Bank (SAMA) issued a circular requiring all domestic banks to adopt the Basel Committee on Banking Supervision's updated Correspondent Banking Annex, which aligns with October 2016 FATF recommendations. The update provides a structured risk assessment mechanism and an updated list of risk indicators to address varying risk levels in correspondent banking activities. Banks must implement these guidelines to ensure compliance and effectively manage money laundering and terrorist financing risks across their correspondent banking operations.
In the Name of Allah, the Most Gracious, the Most Merciful
Saudi Central Bank Headquarters
Banking Policy Department Reference No.: 381000113853 Date: 17/11/1438H Enclosures: -
Circular
To the Esteemed,
Greetings, Subject: Update on the Correspondent Banking Annex of the Guidelines for Sound Management of Risks Related to Money Laundering and Terrorist Financing
The Basel Committee on Banking Supervision (BCBS) has issued an update to the Correspondent Banking Annex within the Guidelines for Sound Management of Risks Related to Money Laundering and Terrorist Financing, originally issued in January 2014 and updated in February 2016, which aligns with the Financial Action Task Force (FATF) recommendations issued in October 2016 regarding money laundering and terrorist financing.
This update aims to guide banks on the risk assessment mechanism for activities and transactions related to correspondent banking, given the differing risk levels among them. The guidelines contain an updated list of risk indicators that must be considered when assessing these risks.
The Authority emphasizes the importance of banks operating in the Kingdom complying with the update to the Correspondent Banking Annex issued by the Basel Committee on Banking Supervision (http://www.bis.org/bcbs/publ/d405.pdf).
Yours sincerely,
Thamer bin Mohammed Al-Eisa General Manager, Banking Supervision Department
Distribution Scope: All banks operating in the Kingdom
Authorized by: P.O. Box 2992, Riyadh 11169, Telegram Address: MARKAZI, Telex: 404400, Phone: 4633000, Fax: 4662414