Under updated executive regulations to the Anti-Money Laundering Law, travelers entering or leaving the Kingdom through land, sea and air ports must submit a written declaration if they are carrying cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, jewellery or similar valuables worth SR40,000 ($10,600) or more. The previous threshold was SR60,000.
The revised regulations, published in the official gazette Umm Al-Qura, also expand the inspection powers of the Zakat, Tax and Customs Authority (ZATCA). Customs officers will be able to inspect individuals, vehicles, cargo containers and postal parcels moving into or out of the Kingdom.
Authorities may temporarily seize undeclared or incorrectly declared cash and valuables for up to 72 hours if there are suspicions they are linked to money laundering or another underlying offence, even when the value is below the declaration threshold. Seized cash must be placed in a designated trust account, while precious metals and gemstones will remain under customs custody during preliminary investigations.
The Public Prosecution may extend the seizure period for up to 60 days, with any additional extension requiring approval from the competent court.
Travelers carrying gold bullion, precious metals, gemstones or jewellery worth SR40,000 or more will also be required to present purchase invoices to verify their value. If customs authorities determine the items are intended for commercial purposes, they will be subject to the Unified Customs Law and its executive regulations.
The amendments also introduce tougher compliance requirements for financial institutions and designated non-financial businesses. Organisations must strengthen information-sharing across their groups to improve customer due diligence and risk management while complying with personal data protection laws.
Financial institutions will also be required to identify the ultimate beneficial owner of legal entities, including any individual who owns or controls at least 25% of a company or exercises effective control through other means.
Saudi financial institutions operating overseas must apply the Kingdom’s anti-money laundering standards where possible and notify Saudi regulators if local laws prevent compliance.
Failure to comply with the declaration requirements could result in financial penalties ranging from 10% to 25% of the value of seized assets for a first violation where no criminal suspicion exists. Repeat offences may attract fines of up to 50%.
Cases involving suspected money laundering or other criminal activity will be referred to the Public Prosecution, with the Saudi Financial Intelligence Unit notified immediately.
