Article 20 of the Saudi Counter-Terrorism Law Implementing Regulations

This article concerns wire transfers, that is, the electronic transfer of funds between financial institutions.

Whom does it address? Financial institutions in three roles:

• The sending institution: the one that sends the transfer.
• The receiving institution: the one that receives it.
• The intermediary institution: the one through which the transfer passes between the sending and receiving institutions.

What is the obligation? Compliance with all requirements issued by the Permanent Committee for Combating Terrorism.

The practical meaning is that the article does not state the requirements themselves, but refers to what the Permanent Committee issues. To know the data that must accompany a transfer, or what each institution must verify, reference is made to the Committee's requirements and not to this article. The obligation covers the intermediary institution as well, and not only the sending and receiving parties.

This article is linked to Article 17 of the Regulations, which makes carrying out a wire transfer for a customer with whom the institution has no business relationship one of the cases that require due diligence measures. Financial institutions that need to understand their obligations in this respect may consult a lawyer specialized in banking and finance.