RIYADH, 14 October — The Saudi Arabian Monetary Agency, which regulates banking and financial activities in the Kingdom, has ordered local banks and financial institutions to monitor and halt dubious dealings through their accounts.
SAMA directed the local banks and other financial institutions to be vigilant and make sure the identities of all their customers. The banks have to be very careful particularly in accepting orders for remittances abroad, SAMA said, adding that the banks should not entertain illegal or dubious transactions.
The financial institutions were also asked to warn concerned authorities if they notice any dubious funds or dealings. It also ordered launching of an inquiry into the accounts or deposits of any person or group included in a US watch list published on Friday and should freeze such accounts or deposits with immediate effect.
The local banks also are instructed to stop all dealings with people without accounts in the bank if they do not carry valid authorization. The banks will also have to monitor the activities of individual and company accounts and give detailed information on these accounts to the concerned authorities.
Several banks expressed dissatisfaction over the instructions which they fear deprive the customers the right to secrecy of accounts. The banks are also required to keep a register for each account so that the concerned security authorities can conduct investigations whenever necessary.
The failure on the part of the banks to inform the authorities of the suspicious business dealings and financial transactions aimed at hiding the source of money, will be viewed seriously, the directive said. Banks are not allowed to transfer or withdraw money from the accounts of persons or organizations in the suspect list without the prior permission of SAMA.
SAMA has also sought the cooperation of the local banks and their overseas branches in passing the information to the concerned officials regarding suspicious accounts. The banks should encourage customers to use credit cards and checks which will simplify monitoring operations.
SAMA, however, refused to comment on the volume of assets frozen in the Kingdom as well as on a reported secret list sent by the US authorities to SAMA.
The US on Friday ordered a freeze on the assets of another 39 suspected terrorists and their supporters, escalating a global effort to choke off the financing of terror.
In September, the US Treasury's Office of Foreign Assets Control released a list of 27 individuals, groups, charities and businesses it said were tied to funding for terrorists. The list included the suspected mastermind behind the Sept. 11 attacks on the United States, Osama bin Laden.
So far, at least $6 million in assets of entities on the list have been frozen in the United States and abroad. More names were to be added to the list, but officials are reportedly mulling whether it's best to track leads through those already named.
