The board of directors of the financial institution is generally responsible for ensuring compliance with AML/CTF requirements. In this regard, the oversight exercised by the board concerning combating ML/TF shall be in line with international best practices, including SAMA Governance Guidelines. The board shall also ensure that there is documentation relevant to its oversight function, such as minutes of meetings of the board (or board committees). The main responsibilities of the board include, but are not limited to, the following:
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| | a) | Ensuring that the ML/TF risk assessment in the financial institution is conducted accurately and covers all risks facing the financial institution in order to develop appropriate policies to manage such risks.
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| | b) | Adopting an internal policy to mitigate ML/TF risks and ensure its effective implementation.
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| | c) | Providing sufficient budget and resources, including adequate and qualified employees as well as appropriate systems and tools in order to ensure that the application of internal policies, procedures and controls is effective and consistent with the ML/TF risks identified.
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| | d) | Following up on the implementation of the ongoing and annual training programs in the field of AML/CTF for all employees as well as members of the board of directors and senior management.
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| | e) | Ensuring that appropriate independent audit mechanisms are in place so that the board can monitor the ongoing effectiveness of internal controls.
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| | Ensuring that the appropriate actions are promptly taken and that violations are not committed when a branch or subsidiary in a country or region is unable to implement the AML/CTF requirements as stated in the Anti-Money Laundering Law, the Law on Combating Terrorism Crimes and Financing, and their Implementing Regulations due to the weakness of laws, regulations, or other domestic measures in that country or the inability to implement the appropriate measures.
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| | f) | Ensuring the receipt of regular comprehensive reports on ML/TF risks facing the financial group or financial institution, including but not limited to:
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| | | • | Corrective action plans, if any, to process the results of independent audits (whether internal or external), observations of the AML/CTF compliance department and inspection reports from SAMA regarding the evaluation of the financial institution’s compliance with AML/CTF requirements.
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| | | • | Developments and updates in the laws and regulations for combating money laundering and terrorism financing as well as their implications on the financial institution, if any.
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| | | • | Details of high ML/TF risks and potential effects on the financial institution.
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| | | • | Details on the implementation of financial sanction procedures related to the UN Security Council resolutions regarding those on terrorist lists, combating proliferation, or the decisions communicated by SAMA.
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