Article 24 of the Saudi Anti-Money Laundering Law
المادة 24 من نظام مكافحة غسل الأموال · الفصل السادس: الرقابة
The article sets the powers of supervisory authorities in collecting information, examination, risk assessment, issuing instructions, international cooperation, applying fit and proper procedures and keeping statistics.
Official text (Arabic)
This article has not been amended since the law was issued.
تتخذ الجهات الرقابية في سبيل أدائها لمهماتها ما يأتي:
أ- جمع المعلومات والبيانات من المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح؛ وتطبيق الإجراءات الإشرافية المناسبة، بما في ذلك إجراء عمليات الفحص الميداني والمكتبي.
ب- إلزام المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح؛ بتوفير أي معلومة تراها الجهة الرقابية ملائمة للقيام بوظائفها، والحصول على نسخ للمستندات والملفات أيًّا كانت طريقة تخزينها وأينما كانت مخزّنة.
ج- إجراء تقييم مخاطر احتمال وقوع غسل الأموال في الجهات التي تملك الجهة الرقابية صلاحية مراقبتها.
د- إصدار تعليمات أو قواعد أو إرشادات أو أي أدوات أخرى للمؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح؛ تنفيذاً لأحكام النظام.
هـ- التعاون والتنسيق مع السلطات المختصة عند تبادل المعلومات الرقابية ذات العلاقة بمجال الإشراف على مكافحة غسل الأموال مع أي جهة أجنبية نظيرة، أو تنفيذ طلبات تتعلق بأعمال رقابية ترد من أي جهة أجنبية نظيرة بالنيابة عنها، أو طلب أي معلومة رقابية أو تعاون من أي جهة أجنبية نظيرة.
و- التحقق من أنّ المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح؛ تعتمد التدابير المقررة وفقاً لأحكام النظام، وتنفّذها في فروعها الأجنبية والشركات التابعة لها والتي تملك فيها حصة الأغلبية بقدر ما تجيزه أنظمة الدولة التي تقع فيها تلك الفروع والشركات.
ز- وضع إجراءات النزاهة والملاءمة وتطبيقها على كل من يسعى إلى المشاركة في إدارة المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح، أو الإشراف عليها أو يسعى إلى امتلاكها أو السيطرة عليها بشكلٍ مباشر أو غير مباشر، أو أن يصبح مستفيداً حقيقياً من حصص كبيرة فيها.
ح- الاحتفاظ بإحصاءات عن التدابير المتخذة والعقوبات المفروضة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 24 explained in plain English
This article sets out what the supervisory authorities do; under the definition in Article 1, they are the bodies responsible for verifying that financial institutions, designated non-financial businesses and professions and non-profit organizations comply with the requirements of the law, the regulations and the related decisions and instructions.
Their powers include:
- Collecting information and examination: Collecting information and data from the bodies under their supervision, and applying appropriate supervisory procedures, including on-site and off-site examination.
- Requesting information and documents: Requiring these bodies to provide any information they consider appropriate, and obtaining copies of documents and files however they are stored and wherever they are.
- Risk assessment in the bodies they have the power to supervise.
- Issuing instructions, rules, guidance and the like in implementation of the law.
- International cooperation: Coordinating with the competent authorities in exchanging supervisory information with counterpart foreign bodies, carrying out their supervisory requests, and requesting cooperation from them.
- Following up foreign branches: Verifying that the supervised bodies adopt and implement the law's measures in their foreign branches and in subsidiaries in which they hold a majority stake, to the extent the laws of the country where they are located allow.
- Fit and proper: Setting and applying procedures to anyone who seeks to manage, supervise, own or control these bodies, directly or indirectly, or to become a beneficial owner of significant holdings in them.
- Statistics: Keeping statistics on the measures taken and the penalties imposed.
The article does not name the supervisory authorities. The sanctions they impose for violations are regulated by Article 25, including a warning and a fine not exceeding five million riyals per violation. Supervised businesses may consult a lawyer who specializes in banking and finance or companies when dealing with a supervisory authority's requests.
Practical example
A finance company in Khobar received an on-site examination visit from its supervisory authority, and was asked to provide copies of customer files stored on servers outside the Kingdom. The supervisory authority is entitled to this, because the article allows it to obtain copies of documents and files however they are stored and wherever they are stored.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 24 of the Saudi Anti-Money Laundering Law
Is the supervisory authority entitled to inspect a company's premises?
Yes. Its powers include applying appropriate supervisory procedures, including on-site and off-site examinations.
What are fit and proper procedures?
They are procedures the supervisory authority sets and applies to anyone who seeks to manage, supervise, own or control the supervised bodies, or to become a beneficial owner of significant holdings in them.
Does supervision extend to a company's branches outside the Kingdom?
The supervisory authority verifies that the measures are implemented in foreign branches and in subsidiaries in which the body holds a majority stake, to the extent the laws of the country where they are located allow.
More articles on Supervisory Authorities and Sanctions
- Article 25
The article sets the measures and penalties the supervisory authority may impose on discovering a violation of the law or the regulations, from a warning and a fine up to SAR 5,000,000 to withdrawal of the license.
مع عدم الإخلال بأي عقوبة أشدّ، ودون إخلال بأي إجراء منصوص عليه في نظام آخر، للجهة الرقابية عند اكتشاف أي مخالفة -من المؤسسات المالية، أو الأعمال والمهن غير الما
- Article 50Amended by M/223
The article provides that the head of State Security issues and amends the regulations, in agreement with the Minister of Finance, the Attorney General and the Governor of the Saudi Central Bank.
يصدر رئيس أمن الدولة اللائحة، ويعدلها، بالاتفاق مع وزير المالية، والنائب العام، ومحافظ البنك المركزي السعودي
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.