Ever since starting my banking career in Saudi Arabia more than two decades ago, I have had the opportunity to deal with the Saudi Arabia Monetary Authority (SAMA) as our regulator. Since its inception, SAMA has been known as the ironfisted regulator, which has given it credibility and respect among central banks around the world. I experienced that first hand during my frequent participation at IMF and World Bank annual meetings.
Recently, Saudi Arabia was accepted as the first Arab member of the Financial Action Task Force (FATF), the Paris-based global watchdog that makes recommendations to governments on combating money laundering and terrorism financing.
It is worth noting that the Kingdom has been a founding member of the Middle East and North Africa Financial Action Task Force since November 2004. In 2015, the Kingdom received an invitation from the FATF to join the group as an observer. The invitation was made in recognition of the Kingdom’s international and regional status, its efforts and measures in the field of combating money laundering and financing of terrorism and proliferation, its compliance with international standards and requirements, and its commitment to all relevant international and bilateral conventions.
The Kingdom’s accession to the FATF is in line with its efforts and financial and economic programs to achieve Vision 2030, which contributes to supporting the development of the national economy and enhancing the efficiency of the financial sector, one of the important objectives of the Financial Sector Development Program (FSDP) by the Ministry of Finance. A recent conference held in Riyadh by FSDP has attracted speakers and participants worldwide.
SAMA’s leadership, headed by Governor Ahmed Al-Kholifey, has been credited for this achievement together with other government agencies that deal with anti-money laundering and combating the financing of terrorism, as well as all related committees that have contributed to the Kingdom’s success in mutual evaluation and access as a full member of the FATF.
In my opinion, the ironfisted management style of SAMA in regulating the different players in the financial sector, including banks, insurance companies, financing companies and mortgage providers, has given it global credibility and recognition.
Whenever global companies want to set up a business in any country, the most important question in the decision-making process is: How credible and globally acceptable is the financial system? With the accession to FATF, the Kingdom has further enhanced its attractiveness for foreign direct investments.
Basil M.K. Al-Ghalayini is the Chairman and CEO of BMG Financial Group.
