Article 68 of the Saudi Counter-Terrorism Crimes and Financing Law
المادة 68 من نظام مكافحة جرائم الإرهاب وتمويله · الفصل السادس: التدابير
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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.
2- يتعين على المؤسسات المالية عند ممارسة نشاط التحويلات البرقية تطبيق المتطلبات الواردة في نظام مكافحة غسل الأموال.
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 68 explained in plain English
This article is addressed only to financial institutions, and deals with two activities that are often international in character:
- Correspondent relationships: when a financial institution enters into a correspondent relationship with other financial institutions, it must take appropriate measures to mitigate the risks arising from this relationship, which are the risks specified in the Anti-Money Laundering Law.
- Wire transfers: when conducting wire transfer activity, the requirements set out in the Anti-Money Laundering Law must be applied.
The article does not set new detailed rules; it refers to the Anti-Money Laundering Law and makes its provisions on these two matters applicable also for the purposes of combating terrorist financing. That Law should therefore be consulted for the measures and requirements in detail.
The article falls within the series of preventive obligations: before it is Article 67, which requires setting policies and controls, and after it is Article 69, which requires continuous monitoring and examination of transactions.
To understand the detailed requirements for a particular institution, one may consult a lawyer who specializes in banking compliance and combating terrorist financing.
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 68 of the Saudi Counter-Terrorism Crimes and Financing Law
What is meant by a correspondent relationship in this article?
It is a relationship a financial institution enters into with other financial institutions, and the article requires it to mitigate the risks arising from it as specified in the Anti-Money Laundering Law.
What requirements apply to wire transfers?
The article refers to the requirements set out in the Anti-Money Laundering Law without detailing them.
Does the article apply to entities other than financial institutions?
No. The article addresses financial institutions only.
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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.