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526 suspicious financial deals being investigated

JEDDAH: The Ministry of Interior's financial surveillance unit was contacted about 1,368 suspect financial transactions, including cases of alleged money laundering and terror funding last year.

The unit referred 526 of them to concerned agencies for further investigation, Al-Madinah newspaper reported Saturday.

According to a report, 1,137 cases (83.1 percent) were reported to the unit by financial organizations.

One-hundred-and-seventy-one (12.5 percent) reports came from government agencies while the remaining 59 came from individuals, the report said.

The report revealed the Saudi Arabian Monetary Agency ( SAMA ) made 862 requests for the disclosure of account details.

The central bank also handled a total of 134 cases involving the exchange of information with foreign entities. These included 80 queries directed to SAMA and another 54 made by the agency. Moreover, details of 3,302 cases had also been exchanged between SAMA and foreign organizations.

The unit, formed six years ago, is under the direct supervision of the assistant minister of interior for security affairs. Its main objective is to receive and verify information about dubious financial transactions.

It has also been tasked with referring legitimate cases to concerned agencies and maintaining complete records in its database. The Riyadh-based unit also exchanges information with concerned agencies within the Kingdom and abroad as part of its objective to combat money laundering and terror funding.

The report sheds light on various measures taken by government agencies to tackle these two types of financial criminal activities. A number of committees comprising representatives of various government agencies have been formed to address these problems and take stringent penal action against those involved in these crimes.

The report noted that money launderers carry out most of their activities online. Money transfers, purchase of checks and travel notes and depositing money through ATMs or fake companies are other major methods they adopt.

The report also drew attention to various monitoring and surveillance measures adopted by concerned government agencies, including the Ministry of Commerce and Industry, SAMA and the Capital Market Authority to combat money laundering and terror funding.

The report stressed that firms, both financial and non-financial, should adhere to the rules and regulations stipulated in laws that aim to combat financial crimes.

All firms should introduce internal monitoring systems to combat money laundering and terror funding, it said.

They should keep a close watch on dubious financial transactions and refer such cases to the authorities. Financial firms should also implement a mechanism to constantly check their clients as part of precautionary measures to avoid getting involved unknowingly in dubious transactions.

They should also verify the basic personal details of account holders such as their names, addresses, signatures, job status and phone numbers, the report pointed out.

© Arab News 2011