Saudi Arabia Country Summary

FATF Status

Saudi Arabia is not currently on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Saudi Arabia was undertaken by the Financial Action Task Force (FATF) in 2020. According to that Evaluation, Saudi Arabia was deemed Compliant for 17 and Largely Compliant for 21 of the FATF 40 Recommendations. It remains Highly effective for 0 and Substantially Effective for 4 of the Effectiveness & Technical Compliance ratings.

Saudi Arabia has made strides in combating corruption through the establishment of the Oversight and Anti-Corruption Commission, which has the authority to investigate and dismiss government employees, including high-ranking officials. However, despite a comprehensive legal framework, enforcement is often perceived as selective, and issues like human trafficking and organized crime persist, with limited attention from the government on certain crimes, particularly those involving state-embedded actors.

In 2023, Saudi Arabia's economy is undergoing significant transformation under the Vision 2030 initiative, which aims to diversify its oil-dependent economy by fostering new sectors such as tourism, entertainment, and renewable energy. The government is actively seeking foreign investment to support ambitious infrastructure projects and "giga-projects," including NEOM and the Red Sea Project, while also enhancing its transport and logistics capabilities to position itself as a regional hub. However, challenges remain, including investor concerns over business predictability, transparency, and political risks, compounded by recent regulatory changes and geopolitical tensions that may affect the overall investment climate.