Local banks have not been given directives to freeze the accounts of foreign workers whose bank transactions are not proportionate to their wages, local media reported.
The Ministry of Interior, the Bureau of Investigation and Public Prosecution and courts are the only authorities that have the right to request the seizure of bank accounts and make restrictions on financial movements, Talat Hafiz, secretary-general of the Media and Banking Awareness Committee, said.
The bank expert was denying earlier reports circulated by media that the Saudi Arabian Monetary Agency (SAMA) had directed local banks to freeze suspicious accounts owned by foreign workers.
“Bank accounts are normally frozen by agencies in coordination with banks upon directives issued by SAMA because it is a regulatory agency tasked with dealing with commercial banks on issues related to money-laundering, terrorism and other security issues,” he said.
“Freezing bank accounts requires regulations and rules set forth by the Kingdom’s systems. The systems do not differentiate between citizens, residents or any legal entities, whether institutions or companies.”
“SAMA does not issue instructions directly to banks to seize or freeze accounts,” he said.
“Its role, rather, is executive. The agency receives orders from authorities on the seizure or freezing of bank accounts.” “Banks are tasked with verifying data, money sources and transactions provided by their customers,” he said.
He said that banks retain the right to ensure accuracy of data and legality of money.
Banks have various units assigned to fight money-laundering, terror financing and other forms of financial fraud, he pointed out.
The anti-money laundering law does not discriminate between account holders, whether citizens or residents, when monitoring suspicious transactions, he said.
No decision on freezing of ‘suspicious’ bank accounts
No decision on freezing of ‘suspicious’ bank accounts
