Saudi Arabia lowers gold declaration threshold

RIYADH: Saudi Arabia has introduced tighter anti-money laundering regulations requiring travellers entering or leaving the Kingdom to declare gold bullion, precious metals, gemstones and jewellery valued at SAR40,000 ($10,700) or more, lowering the previous declaration threshold from SAR60,000.

Under the updated implementing regulations of the Anti-Money Laundering Law, travellers must submit a written customs declaration and provide proof of purchase, such as an invoice, to verify the value of the items. Where authorities determine that the goods are intended for commercial purposes, the provisions of the Unified Customs Law will apply, Okaz newspaper reported.

The regulations grant the Zakat, Tax and Customs Authority (ZATCA) the power to seize undeclared cash, precious metals or other valuables, or assets suspected of being linked to financial crimes, for up to 72 hours.

Cases involving suspected money laundering must be referred to the Public Prosecution and the General Department of Financial Investigations.

First-time violations that do not involve suspected money laundering are subject to fines ranging from 10 per cent to 25 per cent of the value of the undeclared assets, rising to 50 per cent for repeat offences.

Cases linked to suspected money laundering or predicate offences will be referred to the relevant authorities for further legal action.

The updated regulations also introduce a broader risk-based approach to combating financial crime, requiring financial institutions and designated non-financial businesses and professions to carry out regular money laundering risk assessments covering customers, products, services, countries of operation, delivery channels and transaction patterns.

Institutions must document and regularly update those assessments, while strengthening customer due diligence by verifying customer identities, beneficial ownership, sources of funds and the purpose of business relationships before opening accounts or carrying out certain financial transactions.

The regulations also impose enhanced due diligence requirements for politically exposed persons, their family members and close associates, including obtaining senior management approval before establishing certain business relationships and conducting additional checks on sources of wealth and funds.

In addition, financial institutions are required to ensure domestic and international transfers contain complete information on both the sender and beneficiary. Transfers lacking key information may not be processed, while entities subject to the regulations must report suspicious transactions immediately, regardless of their value.

The amendments expand the powers of the General Department of Financial Investigations, allowing it to analyse reports, request additional information, exchange intelligence with domestic and international counterparts, suspend suspicious transactions for up to seven working days and seek precautionary asset freezes linked to money laundering investigations.