Saudi Arabia’s efforts on combating money laundering and terrorist financing. (Review undertaken in September 2017)
| Date | 07 May 2019 |
| Pages | 233-246 |
| DOI | https://doi.org/10.1108/JMLC-10-2018-0065 |
| Published date | 07 May 2019 |
| Author | Mohammed Ahmad Naheem |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
Saudi Arabia’sefforts on
combating money laundering and
terrorist financing
(Review undertaken in September 2017)
Mohammed Ahmad Naheem
Mayfair Compliance, Frankfurt, Germany
Abstract
Purpose –This paper aims to study Saudi Arabia’s approach to combat money laundering and terrorist
financing through legislation, regulation and implementation. Saudi Arabia is an integral part of the global
economy and energy market. Saudi Arabia is also an important nexus for incoming foreign investment in the
region. The country has, for many years, confronted negative exposure on challenging money laundering and
terrorist financing. This paper analyses Saudi Arabia’s efforts to maintain international standards of AML/CTF
and distinguishes regulatory practice from the existing comments and conjecture on the country’sperformance.
Design/methodology/approach –The paper uses a qualitative study of Saudi Arabia’s approach to
combat money laundering and terrorist financing. The approach is spread across three stages of AML/CTF policy –
namely, legislative, regulatory and implementation. Further, the paper also uses independent evaluation to
understand Saudi Arabia’s performance in comparison to the international standards of good AML/CTF practice.
Findings –The paper finds Saudi Arabia in compliance with international standards of AML/CTF practice.
The paper also traces strengthening of AML/CTF-related legislation and regulation in Saudi Arabia over the past
two decades. The paper also finds significant evidence that suggests a biased representation of Saudi Arabia’s
AML/CTF practices. The factual analysis of Saudi Arabia and its AML/CTF practice is in contradiction of the
established discourse on the country’s money launderingand terrorist financing risk pr ofile.
Practical implications –The paper presents a legislative and regulatory analysis of Saudi Arabia’s
AML/CTF practice.It is important to understand the implications of injudicious conjectureon Saudi Arabia’s
financial strategy to diversify the country’seconomy (Mouawad, 2005). Commentators and observers must
consider the evidence presentedin this paper and reassess the discourse regarding Saudi Arabia’sadherence
to internationalstandards of AML/CTF.
Originality/value –Understanding Saudi Arabia’s approachto combat money laundering and terrorist
financingis essential to the factors that maintain stability in theMiddle East. Saudi Arabia has participated in
the region with government forces to maintain stability. The paper examines the overall risk as per
internationalstandards, which can be attributed to Saudi Arabia’s AML/CTFprofile.
Keywords Saudi Arabia, Anti-money laundering, Combating terrorist financing (CTF),
Financial intelligence units (FIUs), MENAFATF
Paper type Research paper
The author explicitly states that this research article is not a propaganda piece and in no way has the
author received any form of funding or assistance from any party towards this piece of research.
This paper sets out an approach to review Saudi Arabia from an independent academic
perspective, employing tools that separate AML/CTF analysis from media opinion.
All the content within this paper was current at the time of being authored (September 2017).
The international political climate has evolved since then, with new material from research also
emerging. These points need to be taken into consideration when reading this paper.
Combating
money
laundering
233
Journalof Money Laundering
Control
Vol.22 No. 2, 2019
pp. 233-246
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-10-2018-0065
The current issue and full text archive of this journal is available on Emerald Insight at:
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