Report Funds Raising Cases Without Obtaining Official Approvals
| No: 351000058896 | Date(g): 9/3/2014 | Date(h): 8/5/1435 |
Translated Document
Further to SAMA Circular No. MAT/25760 dated 26/12/1433 H, referring to Ministry of Interior Telegram No. 73142 dated 2/11/1432 H, which stipulates that all licensed banks in the Kingdom must abide by the previously issued instructions on monitoring abnormal or suspicious operations, including fund raising operations through bank accounts without obtaining prior approvals from the relevant official authorities, and the obligation to report such operations after studying them to the Financial Investigation Unit at the Ministry of Interior in accordance with Article 9 of the Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 24/11/1433 H*, and not to seize these accounts until a directive is received from SAMA, and with reference to Ministry of Interior Telegram No. 25849 dated 18/4/1435H regarding the indicators reached by the working group formed by the Ministry and SAMA.
Accordingly, SAMA would like to emphasize what was stated in its above-mentioned circular. Examples of some of the suspicion indicators that can be used as a basis for monitoring operations related to collecting funds through bank accounts without obtaining prior approvals from the relevant official authorities are shown below, as follows:
| 1- | Incoming deposits or transfers: | ||
| a- | It consists of individuals (male-female) with small amounts of money for the account, repeatedly, and from multiple locations. | ||
| b- | Foreign transfers of small and frequent amounts to countries experiencing political tension or natural disasters from a person's account to the accounts of individuals. | ||
| 2- | Specify the purpose of the deposits or transfers (building a mosque, digging a well, building a school, philanthropy, charity, or donations). | ||
| 3- | The existence of frequent transfers and deposits in a bank account corresponding to transactions between the account holder and a charitable organization or one of its employees. | ||
| 4- | Some accounts are linked to a number of satellite channels (which are interested in fundraising). | ||
| 5- | The bank has information that one of its customers is using social media to advertise that his account is accepting donations. | ||
Accordingly, it is required to operate in accordance with these indicators and include them among the indicators available at the bank or exchange institution. Additional indicators may be added to those mentioned above if deemed appropriate within your policies and regulatory programs.
We also emphasize that in the event of suspicion regarding such transactions, it is necessary to report to the Financial Investigation Unit at the Ministry of Interior, ensuring the report clearly indicates the suspicion's connection to fundraising activities conducted without the approval of the competent authorities. This will enable the unit to take the necessary actions.
We kindly request that you provide feedback on the measures taken in this regard within one month from the date of this notice.
*The Anti-Money Laundering Law issued by royal decree No. M/20 dated 5/2/1439 H has replaced the Anti-Money Laundering Law issued by Royal Decree No. M/31 dated 24/11/1433 H