Article 8 of the Saudi Anti-Money Laundering Law

This article deals with a special category of customers: people who hold positions of public influence. It requires financial institutions and designated non-financial businesses and professions to use appropriate tools to determine whether the customer or the beneficial owner is, or has become, entrusted with any of the following:

• Senior public functions in the Kingdom.
• Senior public functions in a foreign country.
• Senior management positions.
• A position in an international organization.

If that is found, the entity must apply additional measures as specified by the Implementing Regulations. The article itself does not state the content of these measures.

One of the most important points in the text is the phrase "or has become entrusted"; the obligation is not limited to the moment the relationship is opened, but covers a customer who takes up one of these positions after beginning to deal with the entity. The screening also extends to the beneficial owner, meaning the natural person who owns or effectively controls the customer under the definition in Article 1, and not only the customer on the face of it.

This article follows the approach of Article 7, which links the scope of due diligence to the level of risk. Applying the additional measures does not mean accusing the customer of anything; it is a preventive obligation on the entity. For questions on practical application, a lawyer who specializes in banking and finance can be consulted.