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Section 9: Arrangements of AML/CTF Compliance Function

No: 18318/486 Date(g): 17/11/2019 | Date(h): 20/3/1441 Status: In-Force
In order for the financial institution to implement the risk-based approach effectively and adequately, its board shall provide sufficient resources, including human and technological resources that are commensurate with the nature and volume of the financial institution's business and the risk assessment results to combat ML/TF so as to ensure the effective implementation of AML/CTF internal policies, procedures and controls. This shall include setting up appropriate arrangements at the level of the financial institution and appointing an officer for the AML/CTF compliance function with specified work duties. The AML/CTF compliance function shall be an administrative and technical reference for the board and a sub-reference for the senior managements. 
 
Article (14/1) of the Implementing Regulations of the Anti-Money Laundering Law and Article (18) of the Implementing Regulations of the Law on Combating Terrorism Crimes and Financing set forth the obligations of the financial institution, which include setting up appropriate AML/CTF arrangements.

9.1
The financial institution shall set up appropriate arrangements for the AML/CTF Compliance Unit/department, which shall at least include the following:
 
 a)The AML/CTF compliance function.
 
 b)Appointing the person responsible for the AML/CTF compliance function at the senior management level.
 
 c)Ensuring that the officer responsible for the AML/CTF compliance function works independently and administratively and technically reports to the board of directors and its committees.
 
 d)The officer responsible for the AML/CTF compliance function shall have the power to have timely access to any information, including customers’ data under the due diligence measures, records of other related transactions, or any data necessary to carry out all his work.
 
9.2The financial institution shall establish an independent and specialized AML/CTF unit and provide it with sufficient resources, including human and technological resources, to carry out its work perfectly as well as the necessary professional competence and capabilities when recruiting qualified personnel to occupy positions in the AML/CTF unit that shall be solely restricted to Saudi nationals.
 
9.3The financial institution shall specify the duties and responsibilities of the AML/CTF compliance function officer approved in job description. The responsibilities shall include all AML/CTF work, such as the following:
 
 a)Developing an AML/CTF program commensurate with the volume and nature of the financial institution’s business and the ML/TF risks it has identified in order to reduce and effectively manage these risks.
 
 b)Continuously reviewing the business policies and procedures of the financial institution and monitoring their implementation in addition to recommending measures to be taken to meet the AML/CTF requirements and strengthening these measures as needed.
 
 c)Continuous monitoring and examination of activities and transactions to ensure that their volume is consistent with the information that the financial institution has about the customer, its business activities, and the risks posed by that customer in order to detect activities that may include suspicious transactions in addition to making use of such examinations in the preparation and update of AML/CTF monitoring methods approved.
 
 d)Receiving reports on suspicious ML/TF transactions, taking the necessary measures to collect and analyze information about them, and documenting this in writing.
 
 e)Reporting suspicious transactions to the SAFIU as soon as the suspicion is detected in accordance with the reporting procedures followed in addition to preparing a technical report on the suspicion case as stated in the Reporting of Suspicious Transactions Section.
 
 f)Reporting any accounts, business relationships, or financial transactions related to the names included in the lists of the Security Council committees, Committee 2253/1989/1267 and Committee 1988, as well as the names included in the national list in implementation of Security Council Resolution No. (1373) to SAMA, as mentioned in Paragraph (8.15) under the Reporting of Suspicious Transactions Section.
 
 g)Conducting frequent visits to the different departments and branches of the financial institution to ensure that AML/CTF requirements are met in addition to documenting such visits in writing.
 
 h)Preparing and submitting on-site visit reports and periodic reports on activities carried out by the AML/CTF unit/function to the board of directors.
 
 i)Preparing and approving a survey related to the AML/CTF internal controls approved by the financial institution when it enters into a business relationship with another financial institution.
 
 j)Approving the internal controls survey, data collection forms, and any information related to combating ML/TF submitted to SAMA.
 
 k)Participating in AML/CTF work committees.
 
9.4The reports submitted to the board on the activities carried out by the AML/CTF unit/function shall not be limited to statistical data only; they shall also include the identified obstacles and challenges facing the financial institution when implementing the AML/CTF requirements along with the necessary recommendations to improve performance and effectiveness.