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 established the Oversight and Anti-Corruption Commission (Nazaha) to combat corruption, which reports directly to King Salman and has the authority to dismiss government employees. Despite a comprehensive legal framework addressing corruption, enforcement is perceived as selective, and the country faces challenges with human trafficking, illicit trade, and financial crimes. While the government has made strides in anti-corruption efforts and victim support services, issues such as judicial autonomy and civil society restrictions remain significant concerns.

In 2023, Saudi Arabia's economy is undergoing significant transformation under the Vision 2030 initiative, which aims to diversify its economic base away from oil dependency by developing new sectors such as tourism, entertainment, and renewable energy. The government is actively seeking $3 trillion in foreign investment to support these reforms, while also facing challenges such as budget deficits and concerns over business predictability and transparency.

Saudi Arabia's investment climate is shaped by the government's Vision 2030 initiative, which aims to diversify the economy and attract $3 trillion in foreign investment across various sectors, including infrastructure, tourism, and renewable energy. While the Kingdom offers significant opportunities, challenges such as business predictability, transparency, and political risk persist, compounded by policies like increased fees for expatriate workers and 'Saudization' requirements that may deter foreign investors. Despite these concerns, the Saudi government has implemented reforms to streamline the investment process and enhance the attractiveness of the Kingdom as a destination for foreign capital.