Updated Mechanisms for the Implementation of Security Council Resolutions Relating to Combating Terrorism and its Financing

In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Central Bank (SAMA)

Main Center

Anti-Money Laundering and Combating the Financing of Terrorism Department

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Ref. No.: 381000077863
Date: 22/07/1438 (Hijri)
Attachments: None

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"Circular"

To:
/Your Excellency,
/The Bank,
/The Company,
/The General Administration

Greetings:

Subject: Updated Mechanisms for the Implementation of Security Council Resolutions Related to Combating Terrorism and its Financing.

With reference to the Saudi Central Bank's instructions regarding the implementation of Security Council resolutions related to combating terrorism and its financing, as stipulated in the Anti-Money Laundering and Combating the Financing of Terrorism Rules for Banks and Financial Institutions, Foreign Bank Branches operating in the Kingdom (issued February 2012), Insurance Companies (issued February 2012), and Financing Companies (issued February 2012).

The Saudi Central Bank wishes to inform you of the issuance of an update to the mechanisms for implementing Security Council resolutions related to combating terrorism and its financing, pursuant to a telegram from His Royal Highness the Crown Prince, Deputy Prime Minister, Minister of Interior, and Chairman of the Supreme Committee for Combating Terrorism, No. 109130 dated 25/4/1438 AH, based on Article (32) of the Terrorism and its Financing Crimes System, which states: "The Standing Committee for Combating Terrorism at the Ministry of Interior shall establish the necessary mechanisms to implement Security Council Resolutions No. (1667) and No. (1373) and related resolutions, subject to approval by the Minister of Interior." His Highness's telegram included the endorsement and implementation of the updated mechanisms, which are:

1. The mechanism for implementing Security Council resolutions concerning entities listed on the unified list of the Security Council Committee No. (1667) regarding ISIS, Al-Qaeda, and associated individuals, groups, institutions, and entities.

2. The mechanism for implementing Security Council Resolution No. (1373) and subsequent related resolutions on combating terrorism and its financing.

3. The mechanism for implementing Security Council Resolution No. (1988) and subsequent related resolutions.

In implementation of the updated mechanisms for implementing the aforementioned Security Council resolutions, the following measures must be taken:

And to report on actions taken in this regard within one week of its date:

1. Daily monitoring of updates to entities listed on UN lists, by referring to the websites of Committee (1667/1989/2353) and Committee (1988) at the following addresses:

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(https://www.un.org/sc/suborg/ar/sanctions/1988/materials) (http://www.un.org/sc/committees/1667/aq_sanctions_list.shtml)

2. Immediate freezing without delay (within hours) and without prior notice for any accounts, relationships, or financial transactions of those names listed in the Security Council Committees (2353/1989/1667) and Committee (1988) lists, according to available data in the lists, and immediate notification to the Saudi Central Bank, providing full details of the account or transaction. In cases of similar names, notification to the Saudi Central Bank is made without taking action.

3. Immediate freezing of any names classified under Security Council Resolution No. (1373).

4. If a name is removed by the Security Council Committees (2353/1989/1667) and Committee (1988), the freeze must be lifted without delay (within hours) and without prior notice, with immediate notification to the Saudi Central Bank, unless a prior notice of non-removal is received due to classification under Security Council Resolution No. (1373). As for names previously frozen upon recommendations of the Saudi Central Bank, they remain frozen until instructions from the institution to lift the freeze are received.

5. Establishing effective procedures to verify all customer names (individuals, entities, beneficial owners, etc.) against names classified as "listed persons" by local and UN authorities during transactions (for existing customers), or before opening an account or establishing a relationship, particularly regarding fund transfers. In this case, the names of both the sender and beneficiary must be verified.

6. Maintaining an updated list in the database for entities and persons listed on these lists for monitoring purposes, and notifying the Saudi Central Bank thereof.

7. Monitoring sanctions lists issued and available from other countries, verifying all transactions and freezes, and comparing them with these lists to avoid potential legal issues.

Yours sincerely,

Ahmed bin Abdullah Al-Sheikh
Deputy Governor for Supervision

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Distribution Scope:

• All banks operating in the Kingdom
• All insurance companies operating in the Kingdom
• All financing companies operating in the Kingdom
• All licensed financial institutions

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APPROVED

P.O. Box 2992 - Riyadh 11169 - Central Telegram - Tel: 011 4633000