Article 16 of the Saudi Counter-Terrorism Law Implementing Regulations

This article addresses three categories: financial institutions, the specified non-financial businesses and professions, and non-profit organizations. When they assess terrorism financing risks under Article (63) of the Law, they must consider four elements:

1. Customer risks: the factors linked to the customers themselves, and to the beneficial owner or the beneficiary of the dealings.
2. Geographic risks: arising from the countries or regions in which customers carry on their business, or the source or destination of the transaction.
3. Product and channel risks: arising from the nature of the products, services or operations offered, or the channels through which they are delivered.
4. Other factors: any risks identified at the national level, or variables that may raise or lower the risks, such as the purpose of the account or business relationship, the size of deposits or transactions, the frequency of transactions, and the duration of the business relationship.

The practical meaning is that risk assessment is not limited to the person of the customer, but includes where he operates, which product he uses, how it is delivered to him, and the behavior of his dealings. The article does not specify a particular methodology or risk grades. It is linked to Article 17 of the Regulations, which ties tightening or easing of due diligence measures to the level of risk.

Establishments that build their policies in this field may consult a lawyer specialized in banking and finance.