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Regulatory and Legal Framework

Riyad Bank’s AML/CTF framework is governed by applicable Saudi laws and regulatory instructions, including but not limited to:

•             AML/CTF Rules and Guidelines issued by the Saudi Central Bank (SAMA)

•             Anti-Money Laundering Law and its Implementing Regulations

•             Counter-Terrorist Financing Law and its Implementing Regulations

•             Relevant United Nations Security Council Resolutions (UNSCRs)

•             Applicable international and local sanctions regimes and watchlists, including but not limited to United Nations (UN), OFAC, European Union (EU), United Kingdom (UK), and local regulatory requirements.

•             International standards and guidance issued by FATF, Basel Committee

 

The Bank applies a Risk-Based Approach (RBA) across its operations to identify, assess, monitor, and mitigate financial crime risks associated with customers, products, services, delivery channels, and geographic exposure.

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AML/CTF Governance and Compliance Framework

Riyad Bank has established a comprehensive AML/CTF compliance framework designed to detect, prevent, and manage financial crime risks. The framework includes policies, procedures, systems, controls, and governance measures that are regularly reviewed and updated to ensure continued alignment with regulatory expectations and evolving risk trends.

The Bank maintains dedicated compliance functions with oversight responsibilities covering AML, CTF, sanctions compliance, and regulatory compliance matters.

The Bank maintains a dedicated sanctions compliance governance framework with defined oversight responsibilities, escalation procedures, approval authorities, and segregation of duties to ensure effective sanctions compliance management.

Critical sanctions-related decisions are subject to ap propriate review and approval controls based on the four-eyes principle.

All sanctions screening alerts, investigations, decisions, overrides, and case actions are maintained through auditable records and system-generated audit trails.
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Customer Due Diligence and KYC Standards

The Bank applies Customer Due Diligence (CDD) and Know Your Customer (KYC) procedures prior to establishing customer relationships and on an ongoing basis.

These measures include:

  • Verification of customer identity and legal status
  • Identification and verification of Ultimate Beneficial Owners (UBOs)
  • Understanding the nature and purpose of customer relationships
  • Risk classification of customers based on defined risk criteria
  • Ongoing monitoring of customer activity and transactional behavior

Enhanced Due Diligence (EDD) measures are applied to high-risk customers and higher-risk relationships, including Politically Exposed Persons (PEPs) and customers associated with higher geographic or transactional risk.

The Bank does not establish or maintain relationships where sufficient customer identification or beneficial ownership information cannot be obtained or verified.

 

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Sanctions, PF & TFS Compliance

Riyad Bank maintains a sanctions compliance program designed to comply with applicable local and international sanctions obligations, Including but not limited to obligations imposed by the united nations security (UN), the office of Foreign Assets Control (OFAC), the European Union (EU), Her majesty’s Treasury (HMT) , and relevant Local authorities.

The Bank conducts sanctions screening on customers, transactions, trade finance activities, and relevant parties using automated monitoring and screening solutions.

Sanctions screening controls include customer screening, payment filtering, cross-border transaction screening, SWIFT message screening, and periodic batch screening processes through automated systems.

The Bank applies risk-based name matching methodologies, including multilingual and transliteration controls, to enhance sanctions screening effectiveness and reduce screening gaps.

The Bank periodically performs sanctions screening tuning, effectiveness testing, and false positive analysis to ensure the efficiency, accuracy, and effectiveness of sanctions screening controls.

The Bank does not engage in business relationships or transactions involving sanctioned individuals, entities, prohibited jurisdictions, shell banks /Companies, Forex and Crypto currencies., or activities associated with criminal or terrorist organizations.

 

-Proliferation Financing

The bank maintains specific controls to detect and prevent the financing of proliferation financing in line with FATF recommendation 7 and UN resolutions.

 

Targeted Financial Sanctions

The bank implements Targeted Financial Sanctions (TFS) measures, including assets freezing and prohibition of funds transfer to designated individuals and entities, in compliance with UN resolutions.

 

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Transaction Monitoring and Suspicious Activity Reporting

The Bank utilizes automated monitoring systems and risk-based controls to identify unusual or suspicious activity. Where potentially suspicious transactions or activities are identified, the Bank conducts appropriate investigations and reports suspicious transactions to the competent authorities in accordance with applicable laws and regulations. Riyad Bank fully cooperate with regulatory authorities and law enforcement agencies in matters relating to AML/CTF compliance and financial crime investigations.

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Trade Finance Controls

Trade finance activities are subject to AML/CTF and sanctions controls designed to mitigate trade-based money laundering and sanctions-related risks.

The Bank conducts screening and due diligence on relevant parties involved in trade transactions, including customers, counterparties, vessels, and jurisdictions, as applicable.

Trade finance controls may include vessel screening, dual-use goods assessments, shipping route reviews, and enhanced due diligence on high-risk jurisdictions and counterparties, where applicable.
Trade transactions are reviewed to ensure consistency with customer profiles and expected business activity.

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Risk Assessment and Independent Review

The Bank conducts periodic AML/CTF and sanctions risk assessments to identify, evaluate, and manage emerging risks across its business activities. Independent reviews and audits are performed periodically to assess the effectiveness of the AML/CTF compliance framework, internal controls, and governance arrangements. Independent assessments may include sanctions screening effectiveness reviews, model validation, control testing, and regulatory compliance assessments.

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Training and Awareness

AML/CTF and sanctions compliance training is mandatory for all employees and is delivered on a periodic basis according to role-specific responsibilities and risk exposure.

Specialized training programs are provided to employees in higher-risk or control-related functions to ensure effective implementation of regulatory obligations and internal policies.

Training programs may include sanctions-related case studies, typologies, escalation procedures, and scenario-based exercises for relevant employees.

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Record Retention and Confidentiality

The Bank retains records and documentation related to customer relationships and transactions in accordance with applicable regulatory retention requirements.

Customer information and AML/CTF-related data are treated as confidential and protected in accordance with applicable laws, regulations, and internal information security standards.

Employees are prohibited from disclosing information relating to suspicious activity reviews, investigations, or regulatory reporting except as permitted by law.

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Commitment to Compliance

Riyad Bank remains committed to maintaining effective AML/CTF and sanctions compliance controls aligned with regulatory expectations and international best practices. The Bank continuously enhances its compliance framework to address evolving financial crime risks and to support the integrity and stability of the financial system

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