Update on Correspondent Banking Annex of Guidelines for Sound Management of Risks Related to Money Laundering and Terrorist Financing

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