RIYADH — Saudi Arabia has lowered the mandatory declaration threshold for cash and valuables carried through its land, sea, and air ports from SR60,000 ($16,000) to SR40,000 ($10,600), under updated executive regulations to the Anti-Money Laundering Law.
Published in the official gazette Umm Al-Qura, the revised regulations require travelers entering or leaving the Kingdom to submit a written declaration if they are carrying cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, jewelry, or similar valuables worth SR40,000 or more, or the equivalent in foreign currency.
The updated rules also grant the Zakat, Tax and Customs Authority (ZATCA) expanded powers to inspect individuals, vehicles, shipping containers, and postal parcels within customs zones, whether entering or leaving the Kingdom.
Under the regulations, ZATCA may seize undeclared or falsely declared cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, or jewelry for up to 72 hours if authorities suspect a connection to a predicate offense or money laundering, even when the value falls below the mandatory declaration threshold.
The authority is required to document each seizure, conduct preliminary inquiries into the origin of the assets and the reasons for non-declaration or false declaration, and deposit seized currency into a designated trust account while retaining precious metals and gemstones under customs custody.
The regulations allow the Public Prosecution to extend the seizure period for up to 60 days, with any further extension requiring approval from the competent court.
Travelers carrying gold bullion, precious metals, gemstones, or jewelry valued at SR40,000 or more must present purchase invoices to customs officials to verify their value. If the items are determined to be intended for commercial purposes, they will be subject to the Unified Customs Law and its executive regulations.
The amendments also strengthen anti-money laundering compliance requirements for financial institutions by requiring group-wide information-sharing policies to support customer due diligence and risk management while maintaining confidentiality and complying with personal data protection laws.
Financial institutions and designated non-financial businesses and professions must also identify the ultimate beneficial owner of legal entities, including any natural person who owns or controls 25% or more of the entity or exercises effective control through other means.
The regulations further require Saudi financial institutions operating abroad to apply the Kingdom’s anti-money laundering requirements wherever possible and notify Saudi regulators if local laws prevent compliance.
Violations of the declaration requirements carry financial penalties ranging from 10% to 25% of the value of the seized assets for a first offense, provided there is no suspicion of money laundering or another underlying crime. Repeat violations may result in a fine of up to 50% of the value of the seized assets.
Where authorities suspect the seized assets are linked to money laundering or another predicate offense, the case must be referred to the Public Prosecution for investigation, with the Saudi Financial Intelligence Unit notified immediately.
Source: Saudi Gazette