Saudi Arabia holds significant importance in terms of economic diversification, aiming to foster growth in the private sector by promoting entrepreneurship among local individuals. However, money laundering has been a longstanding challenge for the country. Saudi Arabia is committed to adhering to numerous regulations and conventions to combat money laundering and terrorist financing effectively. The Anti-Money Laundering law, adopted by the Saudi Arabian Council of Ministers, serves as the primary legislation governing these efforts. Moreover, Saudi Arabia has made significant progress in implementing many of the provisions outlined in the Financial Action Task Force (FATF) Forty Plus Nine Recommendations.

In addition to the Anti-Money Laundering law and FATF standards, Saudi Arabia has also enacted other local regulations to strengthen its anti-money laundering framework. These include:

• Finances Companies Control Law
• Banking Control Law
• Payment Service Provider Laws (PSP)
• Communications and Information Technology Commission (CITC)

These local regulations complement the broader AML measures implemented in Saudi Arabia, ensuring a comprehensive approach to combat money laundering and related financial crimes.

Saudi Arabia became a member of the FATF in 2019. The Mutual Evaluation Report, published in 2018, indicates that Saudi Arabia complies with 40 out of the 21 FATF Recommendations. It has also implemented the FATF Forty Plus Nine Recommendations. In Saudi Arabia, the Ministry of Anti-Money Laundering was established under the Ministry of Trade and Industry to serve as the primary AML regulator. Additionally, other local regulatory agencies involved in anti-money laundering efforts include the Saudi Arabian Monetary Agency, the Capital Markets Authority (CMA), and the Communications and Information Technology Commission (CITC).

Furthermore, several other regulatory bodies contribute to the anti-money laundering framework in Saudi Arabia, such as:

• The Ministry of Foreign Affairs
• The Ministry of Justice
• The Ministry of Commerce and Industrial
• The Ministry of Finance
• The Department of Customs
• The Commission for Investigation and Prosecution

These regulatory bodies work collectively to ensure the effective implementation of anti-money laundering measures in Saudi Arabia.