Article 63 of the Saudi Counter-Terrorism Crimes and Financing Law
المادة 63 من نظام مكافحة جرائم الإرهاب وتمويله · الفصل السادس: التدابير
Article 63 requires financial institutions, designated non-financial businesses and professions, and non-profit organizations to identify, assess, document and continuously update their terrorist financing risks.
Official text (Arabic)
This article has not been amended since the law was issued.
على المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح؛ تحديد و فهم مخاطر تمويل الإرهاب لديها وتقييمها وتوثيقها وتحديثها بشكل مستمر، وتوفير تقييمها للمخاطر للجهات الرقابية المختصة عند الطلب، مع الأخذ بعين الاعتبار مجموعة واسعة من عوامل الخطر بما فيها تلك المرتبطة بعملائها، أو البلدان أو المناطق الجغرافية، أو المنتجات، أو الخدمات، أو المعاملات أو قنوات التسليم، على أن تتضمّن دراسة تقييم المخاطر وفقاً لهذه المادة تقييماً للمخاطر المرتبطة بمنتجات جديدة، وممارسات العمل والتقنيات قبل استخدامها.
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 63 explained in plain English
This article sets the first preventive obligations on three categories: financial institutions, designated non-financial businesses and professions, and non-profit organizations.
Each of them must do the following regarding its terrorist financing risks:
- Identify and understand them.
- Assess and document them.
- Update them continuously.
- Provide its assessment to the competent supervisory authorities upon request.
The assessment must take into account a wide range of risk factors, including those relating to:
- Customers.
- Countries or geographic areas.
- Products and services.
- Transactions and delivery channels.
The article also requires the risk assessment study to include an assessment of the risks of new products, business practices and technologies before they are used, meaning the assessment comes before launch and not after.
What follows builds on this assessment: Article 64 requires financial institutions and designated non-financial businesses and professions to set the scope of due diligence on the basis of the risk level, and to tighten it when risks are high.
To check the soundness of compliance procedures in a particular entity, one may consult a lawyer who specializes in banking compliance and combating terrorist financing.
Practical example
A fintech company in Riyadh plans to launch an electronic wallet for international transfers. Before launch it must assess the terrorist financing risks associated with this product and the technology used, document the assessment and provide it to the supervisory authority if requested.
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 63 of the Saudi Counter-Terrorism Crimes and Financing Law
Who is required to assess terrorist financing risks?
Financial institutions, designated non-financial businesses and professions, and non-profit organizations.
Must risks be assessed before launching a new product?
Yes. The article requires the assessment study to include the risks of new products, business practices and technologies before they are used.
Must the entity hand over its risk assessment to the supervisory authority?
Yes. It must provide it to the competent supervisory authorities upon request.
More articles on Duties of Financial Institutions and Reporting
- Article 6
Article 6 lets the Public Prosecution, and the Presidency of State Security at the evidence-gathering stage, request records and information from any person or institution, and requires fast, accurate execution and confidentiality.
1- للنيابة العامة -من تلقاء نفسها أو بناءً على طلب رجل الضبط الـجنائي- أن تطلب من أي شخص أو من المؤسسات المالية، أو الأعمال والمهن غير المالية المحددة، أو المنظ
- Article 64
Article 64 requires financial institutions and designated non-financial businesses and professions to apply due diligence measures according to the risk level, tighten them when risk is high, and leaves the details to the Regulations.
على المؤسسات المالية، والأعمال والمهن غير المالية المحددة؛ اتخاذ تدابير العناية الواجبة، وتحديد نطاقها على أساس مستوى مخاطر تمويل الإرهاب المرتبطة بالعملاء وعلا
- Article 65
Article 65 requires financial institutions and designated non-financial businesses and professions to keep all transaction records for at least 10 years and allows the Public Prosecution to require extending that period.
1- على المؤسسات المالية، والأعمال والمهن غير المالية المحددة؛ الاحتفاظ بجميع السجلات والمستندات والوثائق والبيانات بما فيها مستندات تدابير العناية الواجبة، لجمي
- Article 66
Article 66 requires applying enhanced due diligence to dealings with persons from or residing in high-risk countries, and applying the risk-mitigation measures set by the supervisory authorities.
على المؤسسات المالية، والأعمال والمهن غير المالية المحددة؛ تطبيق تدابير العناية الواجبة المشددة على علاقات العمل والمعاملات مع أي شخص يأتي من بلد أو يقيم فيه تم
- Article 67
Article 67 requires financial institutions, designated non-financial businesses and professions, and non-profit organizations to set and effectively implement policies, procedures and controls to combat terrorist financing, with their content left to the Regulations.
على المؤسسات المالية، والأعمال والمهن غير المالية المحددة، والمنظمات غير الهادفة إلى الربح وضع السياسات والإجراءات والضوابط وتنفيذها بفعالية لمكافحة تمويل الإره
- Article 68
Article 68 requires financial institutions to mitigate the risks of correspondent relationships with other financial institutions and to apply the Anti-Money Laundering Law's requirements to wire transfers.
1- على المؤسسات المالية اتخاذ التدابير المناسبة للتخفيف من المخاطر الناتجة عن الدخول في علاقة مراسلة مع مؤسسات مالية أخرى، والمحددة في نظام مكافحة غسل الأموال.
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.