The Financial Action Task Force (FATF) Plenary Meeting agreed
to grant the Kingdom of Saudi Arabia a full membership of the group at the
plenary meeting held in Orlando, USA, during the period 19-21 / 6 / 2019. The
Kingdom is the first Arab country to obtain this membership. The Kingdom's
accession comes as the FATF celebrates its 30th anniversary and held its first meeting
in Paris, France in 1989. The approval came after the submission of reports on
the tangible progress made by the Kingdom, which outlined the measures and
efforts the Kingdom has made in implementing the Action Plan approved by the
FATF.
It is worth noting that the Kingdom is a founding member of
the Middle East & North Africa Financial Action Task Force since November
2004. In 2015,the Kingdom received an invitation from the FATF to join the Group as an observer. The
invitation was made in recognition of the Kingdom's international and regional
status, its efforts and measures in the field of combating money laundering and
financing of terrorism and proliferation, its compliance with international
standards and requirements, and its commitment to all relevant international
and bilateral conventions.
The Kingdom obtained an observer status in the Group in June
2015. In June 2018, the Kingdom completed the mutual evaluation process. It
proved the effectiveness and efficiency of the control measures carried out by
the relevant authorities in the Kingdom in the field of combating money
laundering and financing of terrorism and proliferation. The results revealed
the high level of effectiveness and efficiency of the control procedures.
The Kingdom's accession to the FATF is in line with its
efforts and financial and economic programs to achieve 2030 vision, which
contributes to supporting the development of the national economy and enhancing
the efficiency of the financial sector, which is one of the important
objectives of the Financial Sector Development Program under the leadership of
the Ministry of Finance.
With the accession of the Kingdom as a full member, the
number of FATF members increased to 39
full members, including the most influential countries in the world, such as
the permanent members of the Security Council and most countries of the G-20.
The Kingdom's accession to the FATF will enhance its role in
international forums and contribute in highlighting its efforts in the field of
combating money laundering, financing of terrorism and proliferation; and
creating more geographical balance of the FATF member states as an active representative
of the Middle East and North Africa region. In addition, the Kingdom's sharing
of its expertise and experience with the member countries of the FATF will
contribute to the development and enhancement of the global system to combat
money laundering and financing of terrorism and proliferation.
The Kingdom's accession to the Financial Action Task Force
will contribute to enhancing the capabilities and expertise of specialists in
the Kingdom through direct access to the experiences and expertise of developed
countries, participating in discussions at the FATF’s plenary meetings and in
the work and activities of the working groups.
Ahmed Alkholifey, Governor
of Saudi Arabian Monetary Authority (SAMA) and Chairman of the Anti-Money
Laundering Permanent Committee (AMLPC), chaired the Saudi delegation
participating in the FATF Plenary Meeting. On this occasion, Alkholifey has
congratulated the Custodian of the Two Holy Mosques and the Crown Prince on the
Kingdom's accession to the FATF as a
full member, pointing out to the unlimited support provided by the leadership
in this regard, which will undoubtedly add to the record of achievements and
accomplishments of the Kingdom. The Governor has also valued the efforts,
cooperation and coordination between all authorities concerned with Anti-Money
Laundering & Combating the Financing of Terrorism and Proliferation and
related committees in the Kingdom, which greatly contributed to the Kingdom's
success in the mutual evaluation and access as a full member of the FATF.
Alkholifey explained that the achievement made by the Kingdom
is a recognition of the great achievements that Saudi Arabia had in the field
of money laundering and financing of terrorism and proliferation.
Overview of the Anti-Money Laundering Permanent Committee
(AMLPC)
The Anti-Money Laundering Permanent Committee was
established by the Council of Ministers Resolution No. (15) dated 17/1/1420 H
(3/5 / 1999G). AMLPC is based in the Saudi Arabian Monetary Authority (SAMA),
and it is chaired by the Governor. AMLPC membership includes 13 government
agencies, namely, the Ministry of Foreign Affairs, the Ministry of Justice, the
Ministry of Commerce and Investment, the Ministry of Finance, the Ministry of
Labor and Social Development, the Ministry of Islamic Affairs, Da'wah and
Guidance, the Presidency of State Security, the Public Prosecution, the General
Intelligence Presidency, General Authority of Customs, Capital Market
Authority, Saudi Arabian Monetary Authority (SAMA). The AMLPC represents the
Kingdom in the meetings of the FATF, MENAFATF and other relevant international
bodies and organizations. The FATF is responsible for issuing international
standards, policies and best practices related to the fight against money
laundering and financing of terrorism and proliferation, including ensuring
their application by all States in the world.
AMLPC is cooperating with other relevant permanent committees
such as the Permanent Committee for Combating Terrorism and its Financing in
the Presidency of State Security, the Permanent Committee for Requests for
Mutual Legal Assistance in the Ministry of the Interior and the Permanent
Committee of the Ministry of Foreign Affairs for Implementing Security Council
Resolutions issued pursuant to Chapter VII. The purpose is to ensure
consistency and harmonization of anti-money-laundering policies with policies
in other areas.
AMLPC undertook the responsibility for coordinating the first
mutual assessment process conducted for the Kingdom in 2004 by the FATF. AMLPC
was also responsible for the second mutual evaluation in 2010 conducted by a
joint assessment team of the FATF and MENAFATF. The results of these two
assessments showed the significant progress made by the Kingdom in adopting and
implementing the recommendations issued in the field of AML & CFT.
AMLPC has also worked with other authorities concerned to
improve the legislative environment in the Kingdom by proposing amendments to
several laws, regulations and rules that would contribute to combating these
crimes effectively. The most recent of these are the Anti-Money Laundering Law
(issued in October 2017) and Counter Terrorism Financing Law (issued in
November 2017), the Anti-Money Laundering Implementation Regulations (issued in
November 2017), Combating Terrorist Crimes and Its Financing Implementation
Regulations (issued in January 2019) and the recent guidance manuals issued by
some stakeholders.
In cooperation with the other Permanent
Committees, AMLPC has also prepared the National Strategic Objectives to Combat
Money Laundering, the Financing of Terrorism, and the National Action Plan for
the Implementation of these Objectives, which were approved by the Council of
Ministers in accordance with Resolution No. 42 of 15/1/1440 H. The main
objectives are to continue to develop and strengthen the AML & CFT
framework in the Kingdom.