إلزام المسافرين بالإفصاح عن المجوهرات.. ضوابط صارمة للتحويلات

The updated executive regulation of the Anti-Money Laundering System revealed that travelers are required to declare at customs upon entering or leaving Saudi Arabia if they possess gold bars, precious metals, gemstones, or jewelry valued at 40,000 riyals or more, or the equivalent in foreign currencies.

The regulation confirmed that the declaration must be made in writing at customs points, along with presenting a purchase invoice to prove the value of the gold or jewelry. If it is found that the seized items are intended for commercial purposes, the provisions of the Unified Customs System will apply to the holder.

The regulation granted the Zakat, Tax and Customs Authority the authority to seize undeclared funds or precious metals suspected of being linked to money laundering for up to 72 hours, referring cases suspected of being related to money laundering to the Public Prosecution and the General Directorate of Financial Investigations.

Limited Fine for First Offense

The regulation stipulated imposing a fine ranging from 10% to 25% of the value of the seized items for a first-time violation if there is no suspicion of money laundering, increasing to 50% in case of repeated violations, with any case suspected of being linked to money laundering or an underlying crime referred to the relevant authorities for further legal procedures.

Among the most notable amendments introduced by the regulation is the adoption of the "risk-based assessment" principle, whereby financial institutions and specified non-financial businesses and professions are required to conduct periodic assessments of money laundering and crime financing risks.

These assessments include studying risks related to clients, products, services, countries involved in transactions, service delivery channels, and the nature of financial operations.

Client Identity Verification

The regulation mandated entities subject to the system to document assessment results continuously, review and update them upon any significant changes, allowing for the development of control procedures that match the actual risk level.

This approach represents a shift from traditional uniform oversight to a more flexible supervision focusing on activities or clients most at risk.

The regulation set stricter requirements regarding customer due diligence, making it mandatory for institutions to verify the identity of the client before establishing a business relationship, opening accounts, or executing certain financial transactions.

Beneficial Owner... Who is it? The verification procedures include ensuring the identity of the client and the beneficial owner, understanding the nature of the economic activity, the source of funds, and the purpose of the business relationship, in addition to understanding the expected transaction patterns.

The regulation emphasized the necessity of identifying the "beneficial owner," defined as the natural person who owns or controls, directly or indirectly, 25% or more of the legal entity.

The obligations do not stop at the beginning of the business relationship but extend to continuously monitoring transactions, periodically updating client data, and ensuring that financial operations align with the information available to the institution.

Authority to Refuse Execution

If obtaining the required information or verifying it proves difficult, the regulation grants entities subject to the system the authority to refuse to execute the transaction or terminate the business relationship.

The regulation included specific provisions for politically exposed persons, including senior government officials, politicians, judges, military personnel, and officials of international organizations.

The enhanced due diligence requirements also extend to the family members and close associates of these individuals due to the heightened risk associated with potential abuse of power or misuse of funds.

The regulation requires institutions to obtain approval from senior management before establishing business relationships with some of these categories, along with implementing additional measures that include identifying sources of wealth and funds and enhancing oversight of executed transactions.

More Precise Controls for Transfers

The regulation stressed the importance of transparency in internal and external financial transfers, requiring accurate information about the originator of the transfer and the beneficiary, including the sender's name, account number, beneficiary details, purpose of the transfer, and any information that allows tracking and monitoring of the financial transaction.

The regulation also prohibited executing transfers that lack essential information, thereby limiting the use of financial transfers to conceal the sources of funds or transfer them illegally.

These measures contribute to enhancing the ability of relevant authorities to track suspicious money movements and cooperate with international entities when necessary.

Reporting Suspicious Transactions

The regulation confirmed the obligation to report suspicious transactions to the General Directorate of Financial Investigations as soon as indicators of suspicion arise, regardless of the value or size of the transaction. It also mandated entities subject to the system to provide the required information and data urgently and cooperate with the relevant authorities in investigation and inquiry activities. An important aspect of the amendments is the provision of legal protection for institutions and employees who report in good faith, exempting them from civil, criminal, or disciplinary liability resulting from reporting. This protection aims to encourage early reporting and promote a culture of compliance within institutions.

Wider Powers for Financial Investigations

The regulation expanded the powers of the General Directorate of Financial Investigations, providing it with more effective tools in combating financial crimes.

These powers include analyzing incoming reports, requesting additional information from entities subject to the system, exchanging information locally and internationally, and coordinating with security and judicial authorities.

The regulation also granted the administration the authority to issue orders to suspend suspicious transactions for up to seven working days, in addition to submitting requests for precautionary seizure of funds and assets linked to money laundering crimes.

Oversight of Funds and Precious Metals

Among the most notable amendments is the requirement for travelers to declare funds, gold, precious metals, or gemstones valued at 40,000 riyals or more upon entering or leaving the Kingdom, compared to 60,000 riyals before the amendment.

The regulation granted the Zakat, Tax and Customs Authority the authority to seize funds, metals, or stones in cases of non-declaration, providing false information, or suspicion of their connection to money laundering crimes.

It also stipulated imposing fines for cases of non-declaration or false declaration, with suspected cases referred to the Public Prosecution for further legal procedures.