2.9.1. Compliance & Anti Money Laundering and Combating Terrorism Financing (AML/CTF)

Effective from Sep 24 2019 - Dec 31 2019
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27.	All FBBs are required to have a separate compliance function which is permanent, effective, and operates independently. The compliance and AML/CTF/Legal function/s should have the responsibility to monitor and, on a regular basis, to assess the adequacy and effectiveness of the policy measures and procedures put in place in accordance with;
	(a)	SAMA’s Rules Governing Anti-Money Laundering & Combating Terrorist Financing
	(b)	SAMA’s Compliance Manual for Banks Working in Saudi Arabia and;
	(c)	Other Kingdom of Saudi Arabia regulatory and legal requirements.
28.	In order to enable the FBB’s compliance/AML/CTF functions to discharge their responsibilities properly and independently SAMA requires that the FBB should ensure these functions have the necessary authority, resources, expertise and access to all relevant information.
29.	In addition, where appropriate and proportionate in view of the nature, scale and complexity of its business and the nature and range of its activities, SAMA requires a FBB to ensure at least the following conditions are met:
	i.	The relevant persons involved in the FBB’s compliance team should not be involved in the performance of services or activities they monitor. In other words, compliance department’s officers and staff, especially the compliance officer, should not also be entrusted with functions that may expose them to a conflict of interest in their compliance responsibilities and the compliance work; and
	ii.	The method of determining the remuneration of the relevant persons involved in the FBB’s compliance function do not compromise their objectivity.

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