Overview
Money laundering is a financial crime that poses serious threats to economies around the world. Hiding the falseful earnings behind the legitimate businesses is difficult to identify and catch. But the world’s progressive economies are taking serious measures to eradicate this crime that is evidently used to finance the Terrorism and other serious crimes.
What is Money Laundering?
Money laundering is a complex and multifaceted crime that can take many different forms. Money laundering is the act of disguising the proceeds of illegal activity as legitimate funds. It is a serious crime that can have significant consequences for individuals and organizations involved.
This article highlights some of the reported high profile money laundering cases in Saudi Arabia.
Money laundering & Saudi Arabia
In Saudi Arabia, the Financial Intelligence Unit (FIU) is responsible for receiving, analyzing, and disseminating financial intelligence related to money laundering and terrorist financing. The FIU works closely with law enforcement and regulatory agencies to combat financial crime and protect the integrity of the financial system.
Recent Money Laundering Cases in Saudi Arabia
In 2019, Saudi authorities arrested several individuals in connection with a money laundering and corruption case involving billions of dollars. The individuals were accused of using their positions of power to embezzle public funds and launder the proceeds through a network of companies and bank accounts.
In 2018, Saudi authorities arrested several high-ranking officials, including a billionaire businessman, in connection with a massive money laundering and corruption investigation. The officials were accused of using their positions of influence to embezzle billions of dollars from state-owned entities.
In 2016, Saudi authorities arrested several individuals in connection with a money laundering case involving the illicit transfer of funds through a network of companies and bank accounts. The individuals were accused of using their positions within a government agency to facilitate the laundering of proceeds from illegal activities.
Also Read: News Stories on art & jewelry brands practicing KYC & AML
Apart from these cases, Money laundering has been a prevalent issue in Saudi Arabia where multiple high-profile criminals and corrupt politicians from many muslim countries have taken asylum.
Most Recent News on Money Laundering in KSA
ArabNews.com reports on December 1, 2022 in Riyadh, 2 citizens were tried in a Money Laundering case and were sentenced to 18 years of jail and a fine of $133,000. The court ordered the similar value funds as well.
For detailed information: Saudi court jails 3 for 18 years for money laundering, fined $133,000
It was also reported here on December 12, 2022 that 5 people were convicted of Money laundering in Riyadh. The judicial ruling in KSA against the money laundering case includes a fine of $133,000 and up to 20 years imprisonment.
For detailed information: Saudi authorities convict 5 people of money laundering
Anti-money Laundering by KSA government
Since 2003 the active approach against money laundering has been witnessed in Saudi Arabia due to the reported cases of terrorism funding through money laundering.
Extract of knowledge
From the above mentioned cases & news, it is evident that the Government of KSA is actively making efforts to eradicate Money Laundering. Furthermore, the laws of Anti-Money laundering in Saudi Arabia are updated from 2003 till 2021 whose citations are given below:
Combating money laundering 2003
AML CTF Saudi Central Bank - 2021
Final Thoughts
KYC can help in pacing up and improving the AML in KSA. It is vitally important to have a clear policy against the Financial crimes like Money Laundering but mitigating the crime well before it occurs is necessarily important. Which is why KYC (Know Your Customer) is one of the most useful approaches against global fincrime.
We hope that this article will enlighten you with the insights of KYC/AML and related topics.
Also visit: Real Estate Investment Trusts (REITs) in implementing effective KYC and AML processes
