Reuters reports Saudi banks delay UAE-bound transfers under enhanced oversight
This digest was compiled by AI from multiple sources — links to the originals are below.
Saudi Arabia has placed financial transfers to the United Arab Emirates under enhanced anti-money-laundering oversight, three people with direct knowledge of the matter told Reuters on Aug 18. The measures were not announced publicly, and six businesspeople said their companies had UAE-bound transfers in various currencies delayed or returned by Saudi banks with no official explanation. Saudi central bank says there are no direct restrictions on specific countries, while UAE says it has no reports of delays.
Key Facts
- Saudi Arabia's central bank earlier this year notified key banks to apply enhanced oversight measures when handling settlements with the UAE, three people with direct knowledge told Reuters.
- Six businesspeople told Reuters their companies have had transfers in various currencies delayed or returned by Saudi banks with no official explanation.
- The Saudi central bank said there are 'no direct restrictions on specific countries' and cited a robust regulatory framework aligned with Financial Action Task Force standards.
- A UAE economy ministry official said the ministry has not received any private-sector reports of difficulties or unusual delays in bank transfers between the two nations.
- Bloomberg and the Financial Times first reported in July that companies faced difficulties transferring funds from Saudi Arabia to the UAE.
Enhanced Oversight Measures
Saudi Arabia has placed financial transfers to the United Arab Emirates under extra layers of regulatory oversight reserved for countries considered high-risk for illicit money flows, according to three people with direct knowledge of the matter. The measures, which were not announced publicly, were communicated to key Saudi banks earlier this year. The Saudi central bank said financial institutions must apply more checks when dealing with customers or jurisdictions that pose greater risks for money laundering, terrorism financing and other crimes. A fourth person, a Western executive with operations in Saudi Arabia, said they received the same explanation when they asked their bank about transaction delays. A Saudi insider described the measures as a 'subtle message' to the UAE.
Transfer Delays
Six businesspeople told Reuters their companies have had transfers in various currencies delayed or returned by Saudi banks with no official explanation. The issue was first reported by Bloomberg and the Financial Times in July. A number of companies say they have had difficulties transferring funds from accounts in Saudi Arabia to the UAE in recent months.
Official Responses
Responding to Reuters, the Saudi central bank said: 'There are no direct restrictions on specific countries.' It said Saudi Arabia has a robust regulatory framework to combat money laundering and terrorism financing in line with standards set by the Financial Action Task Force (FATF), a global watchdog based in Paris. All banks in the Kingdom apply necessary controls and preventive measures to mitigate risks based on their own internal assessments and institutional risk appetite, while also assessing various risk factors, including country and geographic risk, it said. A UAE official said its economy ministry has not received any reports from private-sector companies regarding difficulties or unusual delays in completing bank transfers between the two nations. The UAE and Saudi Arabia maintain deep and longstanding economic and commercial ties, supported by significant trade and investment flows; we remain in regular engagement with the private sector and relevant stakeholders, the official said.
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Reuters reports Saudi banks delay UAE-bound transfers under enhanced oversight
