Saudi Arabia Enforces Strict Disclosure Rules for Gold and Jewelry at Borders

The updated executive regulations under Saudi Arabia's Anti-Money Laundering Law introduce tightened controls and disclosure requirements for travelers entering or leaving the kingdom.

Under the new rules, travelers must submit a customs declaration when carrying gold bars, precious metals, gemstones, or jewelry valued over 40,000 riyals either upon arrival or departure.

This declaration must be submitted in writing and accompanied by a purchase invoice to verify the declared value. If the seized items are determined to be of commercial nature, the provisions of the Unified Customs Law will be applied.

The Zakat, Tax and Customs Authority is authorized to detain undeclared or suspicious funds or metals for up to 72 hours. Cases linked to suspected money laundering are referred to the appropriate authorities.

The regulations specify financial penalties ranging from 10% to 25% of the value of confiscated goods for a first offense, escalating to 50% for repeated violations, with suspicious cases forwarded for criminal investigation.

Risk-Based Evaluation and Customer Due Diligence

The regulations adopt a risk-based assessment approach, requiring financial institutions and non-financial businesses and professions to conduct periodic evaluations of money laundering risks. These assessments must consider clients, products, countries, and transaction channels.

They also emphasize customer due diligence by mandating identity verification and identification of the beneficial owner before establishing any relationship. The beneficial owner is defined as the individual owning or controlling 25% or more of the entity. Continuous monitoring is required, and transactions may be rejected if verification cannot be completed.

Financial Transfers and Reporting Obligations

Regarding financial transfers, the regulations require complete information about both the sender and recipient. Transfers lacking essential data are prohibited. There is an obligation for immediate reporting of suspicious transactions, with legal protections provided for whistleblowers.

The Financial Investigation Unit has been granted expanded powers, including analyzing reports, requesting information, and suspending suspicious transactions for up to seven working days. These measures aim to enhance financial oversight and protect the economic system.