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 promote transparency and combat corruption, with the authority to dismiss government employees regardless of court findings. Despite a comprehensive legal framework addressing corruption, enforcement is perceived as selective, and issues such as nepotism and the use of middlemen remain prevalent. The Kingdom ranks 53 out of 180 in Transparency International's Corruption Perceptions Index 2023, highlighting ongoing challenges in the fight against corruption.

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 fostering growth in 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 investor concerns regarding 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 remain, such as concerns over business predictability, transparency, and the impact of Saudization policies that mandate hiring local workers, which can increase operational costs for foreign investors.