Saudi Arabia lowers the declaration threshold from SAR60,000 to SAR40,000 under revised regulations.
Dubai: Saudi Arabia has tightened its anti-money laundering regulations, requiring travellers entering or leaving the Kingdom to declare gold bullion, precious metals, gemstones, and jewellery valued at SAR40,000 ($10,700) or more. The new rules lower the declaration threshold from the previous SAR60,000.
Under the updated implementing regulations of the Anti-Money Laundering Law, travellers must submit a written customs declaration and provide proof of purchase, such as an invoice, to verify the value of the items. If authorities determine the goods are intended for commercial purposes, the provisions of the Unified Customs Law will apply.
The updated regulations empower the Zakat, Tax and Customs Authority (ZATCA) to seize undeclared cash, precious metals, valuables, or assets suspected of being linked to financial crimes for up to 72 hours. Cases involving suspected money laundering must then be referred to the Public Prosecution and the General Department of Financial Investigations.
First-time violations that do not involve suspected money laundering will incur fines ranging from 10 per cent to 25 per cent of the value of the undeclared assets, increasing to 50 per cent for repeat offences. Cases involving suspected money laundering or related offences will be referred to the relevant authorities for further legal action.
The updated regulations also introduce a broader risk-based approach to tackling financial crime. Financial institutions, along with designated non-financial businesses and professions, are now required to conduct regular money laundering risk assessments covering customers, products, services, countries of operation, delivery channels, and transaction patterns.
Institutions are required to document and regularly update these assessments, while also strengthening customer due diligence by verifying customer identities, beneficial ownership, sources of funds, and the purpose of business relationships before opening accounts or conducting certain financial transactions.
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The regulations also introduce enhanced due diligence requirements for politically exposed persons, their family members, and close associates, including senior management approval before establishing certain business relationships and additional checks on sources of wealth and funds.
In addition, financial institutions must ensure that domestic and international transfers include complete information on both sender and beneficiary. Transfers missing key details may be blocked, while regulated entities are required to report suspicious transactions immediately, regardless of value.
The amendments broaden the powers of the General Department of Financial Investigations, enabling it to analyse reports, request additional information, exchange intelligence with domestic and international counterparts, suspend suspicious transactions for up to seven working days, and seek precautionary asset freezes related to money laundering investigations.
