Anti-Money Laundering Flashcards
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Read the first 6 Anti-Money Laundering flashcards as text
What is the primary Saudi legislation governing anti-money laundering?
Answer: Anti-Money Laundering Law issued by Royal Decree M/31
The Anti-Money Laundering Law (Royal Decree M/31) is the primary legislation governing AML in Saudi Arabia. It establishes offenses, penalties, and obligations for financial institutions to prevent money laundering.
What does 'Know Your Customer' (KYC) require authorized persons to do?
Answer: Verify customer identity, assess risk, and maintain updated records
KYC requires authorized persons to verify customer identity using reliable documents, assess the customer's risk profile, understand the nature and purpose of the business relationship, and maintain updated records.
What is a Suspicious Transaction Report (STR) and who must file it?
Answer: A report filed by financial institutions to the Saudi Financial Intelligence Unit when suspicious activity is detected
Financial institutions, including CMA-authorized persons, must file STRs with the Saudi Financial Intelligence Unit (SAFIU) when they suspect or have reasonable grounds to suspect that a transaction involves proceeds of crime or is related to money laundering or terrorism financing.
What is the penalty for 'tipping off' a customer about a money laundering investigation?
Answer: Imprisonment for up to 2 years and/or a fine
Under Saudi AML law, tipping off a customer or any other person about an ongoing investigation or the filing of an STR is a criminal offense punishable by imprisonment for up to 2 years and/or a fine.
What is Enhanced Due Diligence (EDD) and when must it be applied?
Answer: Additional verification measures applied to high-risk customers, PEPs, and complex transactions
EDD requires additional verification measures beyond standard CDD for high-risk situations, including dealings with Politically Exposed Persons (PEPs), complex or unusual transactions, and customers from high-risk jurisdictions.
How long must financial institutions in Saudi Arabia retain customer records and transaction data?
Answer: 10 years after the end of the business relationship
Saudi AML regulations require financial institutions to retain all customer identification data, account files, and business correspondence for at least 10 years after the end of the business relationship or the date of the transaction.
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