Further to the Central Bank's circulars regarding the statements issued by the plenary meetings of the Financial Action Task Force (FATF) regarding the risks of dealing with certain parties. And The Central Banks' requeste to identify all transactions with the countries mentioned in the statement, assess the banking relationships with them, take the necessary measures, provide the Central Bank with a detailed report on them, follow up on what is issued by other relevant authorities regarding countries and regions that have weaknesses in their AML/CFT procedures or those that do not apply or do not adequately apply the FATF recommendations or represent a high degree of risk, and take caution about existing transactions with them.

Emphasizing the provisions of paragraph (5.2) of the AML&CFT Rules  (Second Update) issued by the Central Bank Circular No. 00042/MAT/829 dated 29/12/1429H, that banks and exchange houses must strengthen due diligence procedures with special attention to business relationships and operations with individuals, including companies and banks that operate or practice their activities within countries or geographical areas that do not apply or insufficiently apply the FATF recommendations.

In order to keep pace with local and international developments and requirements in the field of AML/CFT, banks and licensed exchange houses operating in the Kingdom must take appropriate countermeasures that reduce the risk of dealing with entities located in countries and regions that have weak AML/CFT procedures or those that do not apply or insufficiently apply the FATF recommendations, as follows:

1. Pay particular attention to business relationships and operations with individuals (including legal persons and other financial institutions) from or in countries that have weak AML/CFT procedures or that do not apply or do not adequately apply the recommendations of the Financial Action Task Force (FATF)
2.  Classify the risk level of all countries mentioned by all international organizations, including but not limited to the FATF, Security Council, Chapter VII Committee of the United Nations Charter ... and others issued warning bulletins as high, medium, low risk in accordance with the classification of those organizations as a minimum, and determine the necessary action to be taken regarding monitoring transactions with them or limiting the formation of business relationships and financial operations with the concerned countries or individuals in those countries.
3.   Adhere to the statements of these organizations, whether the warning issued by the Financial Action Task Force (FATF) or the resolutions of the Security Council and the Chapter VII Committee of the United Nations Charter, and identify any transactions related to them and prepare detailed reports on them, follow up on what is issued by the relevant authorities and take the necessary measures regarding them.
4.   Strengthening customer due diligence requirements to identify the ultimate beneficiary before establishing business relationships with individuals or companies from these countries.
5.    Immediate cessation of dealings with entities, individuals, or financial institutions from countries subject to financial sanctions by the United Nations Security Council, including measures under Chapter VII of the UN Charter. This cessation must cover all banking and financial transactions.
6.   Enhanced due diligence must be exercised when entering into new business agreements or opening correspondent banking accounts with countries subject to advisory notices issued by the Financial Action Task Force (FATF), the United Nations Security Council, or the Chapter VII Committee of the UN Charter. It is essential to ensure that the correspondent bank is not listed on local or United Nations sanctions or prohibition lists.
7.    Immediately update the requirements to complete or fulfill AML/CFT procedures and take enhanced due diligence procedures for all banking transactions with related parties in those countries.
8.    Classify all banking activities and relationships conducted by the bank with entities affiliated with countries subject to advisory notices (including government relations, correspondent banking relationships, commercial relationships with companies or individuals, resident customer relationships, and others) at a risk level commensurate with the nature of these activities and relationships, as well as the risk level of the respective countries.
9.   Ensure that all banking activities and relationships conducted by the bank with entities affiliated with countries subject to advisory notices are for clear economic or legal purposes. Identify the ultimate beneficiaries of these activities and relationships, and based on this, determine the risk level and the necessary monitoring requirements.
10.   If these operations do not have a clear economic or legal purpose, the background and purpose of these operations should be studied as much as possible, and the results of this study should be kept in writing and made available when needed to assist the competent authorities.
11.  Conduct a comprehensive review of all commercial relationships conducted by customers, including credits and guarantees, to determine their purpose and identify their beneficiaries.
12.  Informing the Bank's senior management and compliance department of the Bank's current banking relationships with entities affiliated with these countries, and obtaining the necessary approvals from the Bank or the supervisory authorities regarding dealing with these countries, depending on the severity of the case. 
13.     Strictly adhere to the instructions for reporting suspicious transactions in general, and reinforce reports related to suspicious financial transactions with those countries for which warning notices have been issued to the Financial Investigation Unit (FIU). 
14.  Taking into account the content of all relevant international resolutions and warning bulletins issued by various regional and international organizations, referring to the websites of these organizations periodically and continuously, researching other reliable sources of information and taking the necessary measures regarding them.
15.  Circulate to the business sectors within the bank or exchange shop to include internal and external branches and subsidiaries to take note of the supervisory instructions issued in this regard, and verify their implementation.