Saudi Arabia combats financial crime to foster growth and stability
Ayman Al-Sayari, Governor of the Saudi Central Bank, highlighted the profound impact of financial crime on global growth and stability. Speaking at the IMF and World Bank Group Annual Meetings, he detailed Saudi Arabia's strategic response to combat illicit financial flows.
Global threat, national resolve
Financial crime, including money laundering and fraud, poses a significant global challenge, with an estimated $3.1 trillion in illicit funds flowing through the financial system in 2023. Such activities distort resource allocation, deter legitimate investment, and undermine financial system credibility, with fraud scams alone causing over $485 billion in losses globally in the same year.
Saudi Arabia addresses this challenge strategically, aligning its response with Vision 2030's core principles of integrity and transparency.
Over the past decade, the Kingdom has established comprehensive national AML/CFT and anti-corruption frameworks.
These efforts are coordinated by high-level national committees, integrating preventive, supervisory, investigative, and judicial measures to combat financial crime effectively.
This collaborative approach, involving governments, financial institutions, and businesses, is deemed imperative to prevent, identify, and mitigate the widespread impacts of financial crimes on economic growth and stability.
Four pillars of defense
The Saudi Central Bank prioritizes combating financial crime through four key actions.
It invests in risk-based supervision for banks and non-banks, enhancing data analytics to detect illicit activity and fostering a strong compliance culture.
The Saudi Financial Intelligence Unit (SAFIU) conducts proactive financial analysis and coordinates with law enforcement to trace and confiscate criminal proceeds.
Significant progress has been made in transparency and beneficial ownership disclosure, aligning with FATF standards to protect the Kingdom's financial reputation.
Governance reforms, including transparent public procurement and digitalized government services, ensure investments uphold the financial sector's integrity.
Integrity as an economic imperative
Saudi Arabia's comprehensive strategy against financial crime, integrating technology and international standards, underscores a clear commitment to economic integrity.
This proactive stance is vital for attracting legitimate foreign investment and securing the Kingdom's financial reputation amidst global challenges.
The emphasis on innovation, balanced with robust controls, sets a benchmark for regional efforts in combating illicit flows.