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 addressing corruption through the establishment of the Oversight and Anti-Corruption Commission (Nazaha), which has the authority to investigate and dismiss government officials, including high-ranking individuals. Despite a comprehensive legal framework against corruption, enforcement is perceived as selective, and challenges remain in combating human trafficking, drug trafficking, and financial crimes, with the judicial system lacking autonomy and civil society organizations facing significant restrictions.

Saudi Arabia's economy is undergoing significant transformation under the Vision 2030 initiative, which aims to diversify its oil-dependent economy and create more private sector jobs, particularly for its youthful population. The government is actively seeking foreign investment in various sectors, including infrastructure, tourism, entertainment, healthcare, technology, and renewable energy, while also promoting flagship mega-projects to enhance economic growth and livability. Despite these ambitious reforms, challenges remain, such as concerns over business predictability, rising operational costs due to increased fees for expatriate workers, and geopolitical risks, which may affect investor confidence and the overall investment climate.