Saudi Arabia Strengthens AML Framework Through Council of Ministers Decision No. 748 and Royal Decree No. D/223

Regulation Name: Council of Ministers Decision No. 748 and Royal Decree No. D/223
Date Of Issue: 17 Apr 2026
Region: Saudi Arabia
Agency: Saudi Arabia Government

Saudi Arabia has officially approved major amendments to its Anti-Money Laundering (AML) Law through Council of Ministers Decision No. 748 and Royal Decree No. D/223, marking one of the Kingdom’s most significant financial crime compliance reforms in recent years. Published in Umm Al-Qura Issue No. 5155 on 17 April 2026, the amendments reinforce Saudi Arabia’s commitment to global AML/CFT standards, FATF compliance, and Vision 2030 financial sector modernization.

The revised framework introduces stricter enforcement measures, enhanced confiscation powers, expanded travel restrictions for offenders, and stronger regulatory expectations for financial institutions, designated non-financial businesses and professions (DNFBPs), and compliance officers operating within the Kingdom. These amendments are expected to significantly impact banks, fintechs, crypto-related businesses, money exchange houses, insurers, securities firms, and cross-border financial institutions dealing with Saudi Arabia.

What Is Council of Ministers Decision No. 748?

Council of Ministers Decision No. 748 formally approved amendments to the existing Anti-Money Laundering Law originally issued under Royal Decree No. M/20 dated 25 October 2017. The decision was issued on 14 April 2026 and came into force immediately following publication in the official gazette.

The decision followed reviews by:

• The Shura Council
• The Political and Security Affairs Council
• The Council of Economic and Development Affairs
• The Bureau of Experts at the Council of Ministers

The reform process demonstrates Saudi Arabia’s whole-of-government approach toward combating money laundering, terrorist financing, and illicit financial flows.

What Is Royal Decree No. D/223?

Royal Decree No. D/223, issued by King Salman bin Abdulaziz Al-Saud, formally enacted the AML amendments approved under Cabinet Decision No. 748. The decree confirmed implementation responsibilities across ministries and independent authorities and established the amendments as binding national law.

The Royal Decree also clarified that previously issued executive regulations remain enforceable unless inconsistent with the newly amended provisions, ensuring regulatory continuity for reporting entities and supervisors. 

Key Amendments to Saudi Arabia’s AML Law

1. Expanded Asset Confiscation Powers

One of the most notable changes is the expansion of judicial authority to confiscate proceeds and instrumentalities linked to money laundering offenses.

The amended law broadens confiscation powers to include:

• Assets derived directly or indirectly from money laundering
• Assets transferred to third parties
• Substitute assets representing illicit proceeds
• Property linked to predicate offenses

However, protections remain for legitimate third-party owners acting in good faith.

Why This Matters

This aligns Saudi Arabia more closely with FATF Recommendations relating to asset recovery and beneficial ownership transparency. Regulators worldwide increasingly expect financial institutions to identify layered ownership structures and trace ultimate beneficial ownership (UBO) risks effectively.

For compliance teams, this means greater scrutiny of:

• Complex ownership structures
• Shell entities
• Trade-based money laundering typologies
• Cross-border asset movement
• Suspicious wealth accumulation

2. Travel Bans for Saudi Nationals Convicted of Money Laundering

The amended Article 28 introduces automatic travel restrictions for Saudi nationals convicted of money laundering offenses.

Under the revised law:

• Convicted Saudi nationals may face travel bans equal in duration to their prison sentence
• The restriction applies after completion of imprisonment terms

This significantly raises the personal consequences associated with AML violations.

Compliance Implications

Senior executives, board members, compliance officers, and beneficial owners involved in financial crimes may face long-term mobility restrictions, increasing the reputational and operational impact of AML violations.

3. Deportation and Re-entry Restrictions for Foreign Offenders

The amended AML framework also strengthens measures against non-Saudi nationals convicted of money laundering.

Under the revised provisions:

• Foreign nationals convicted of AML offenses will be deported after serving their sentence
• Re-entry into Saudi Arabia will generally be prohibited
• Limited exceptions may apply for Hajj or Umrah purposes

These changes reinforce Saudi Arabia’s zero-tolerance approach toward financial crime. 

4. Stronger Enforcement and Regulatory Oversight

Saudi Arabia’s AML regulators, including the Saudi Central Bank (SAMA), Capital Market Authority (CMA), and the Saudi Financial Intelligence Unit (SAFIU), are expected to intensify supervisory scrutiny following the amendments.

The revised law strengthens the Kingdom’s ability to:

• Investigate suspicious transactions
• Coordinate financial intelligence sharing
• Freeze and seize illicit assets
• Enforce AML obligations across regulated sectors
• Enhance cross-border cooperation

This reflects global AML trends emphasizing proactive enforcement rather than reactive compliance.

Impact on Financial Institutions and DNFBPs

Banks and Financial Institutions

Saudi banks and financial institutions will likely need to reassess:

• Customer Due Diligence (CDD)
• Enhanced Due Diligence (EDD)
• Transaction monitoring frameworks
• Sanctions screening systems
• Politically Exposed Person (PEP) screening
• Beneficial ownership verification
• Ongoing customer risk assessments

Institutions with outdated AML infrastructure may face heightened regulatory exposure.

Fintech and Digital Payment Providers

Saudi Arabia’s rapidly growing fintech ecosystem will also be affected by the amendments.

Fintechs, digital wallets, payment service providers, and embedded finance platforms may need to strengthen:

• Real-time transaction monitoring
• AI-driven anomaly detection
• Identity verification workflows
• Fraud prevention controls
• Crypto-related AML monitoring

As Saudi Arabia continues digital financial transformation under Vision 2030, regulators are increasingly focused on balancing innovation with financial crime risk mitigation.

DNFBPs and Corporate Service Providers

Designated Non-Financial Businesses and Professions (DNFBPs), including:

• Real estate brokers
• Lawyers
• Accountants
• Dealers in precious metals and stones
• Trust and company service providers

will likely face stricter expectations around suspicious transaction reporting and beneficial ownership transparency.

These sectors remain globally vulnerable to money laundering typologies involving asset concealment and corporate structuring.

Saudi Arabia’s FATF Alignment Strategy

Saudi Arabia has steadily strengthened its AML ecosystem since becoming an active participant in global AML/CFT initiatives.

The Kingdom is a member of:

• FATF
• MENAFATF
• Egmont Group (through SAFIU)

The new amendments appear designed to enhance alignment with FATF Recommendations concerning:

• Asset confiscation
• International cooperation
• Risk-based supervision
• Beneficial ownership transparency
• Prosecution effectiveness
• Sanctions enforcement

Saudi Arabia has increasingly positioned itself as a regional leader in financial crime compliance and regulatory modernization.

Operational Challenges for Compliance Teams

The amended AML law may create several operational challenges for organizations operating in Saudi Arabia.

Key Compliance Challenges

Data Quality and Customer Risk Profiling

Institutions must maintain accurate customer records, beneficial ownership data, and risk classification models.

Cross-Border Monitoring

Organizations dealing with international transactions may face increased scrutiny around correspondent banking relationships and high-risk jurisdictions.

Adverse Media and PEP Screening

Enhanced enforcement increases the need for continuous adverse media monitoring and politically exposed person screening.

Regulatory Reporting

Suspicious Transaction Reports (STRs) and compliance documentation may require improved audit trails and faster escalation processes.

Technology Will Become Critical for AML Compliance

The Saudi AML amendments further reinforce the importance of RegTech-driven compliance infrastructure.

Organizations increasingly require:

• Automated AML screening
• AI-powered transaction monitoring
• Real-time sanctions screening
• Entity resolution capabilities
• Network analytics
• Risk scoring engines
• Integrated case management systems

Modern AML compliance is no longer achievable through manual processes alone, especially in high-growth financial ecosystems like Saudi Arabia.

What Businesses Should Do Next

Organizations operating in or connected to Saudi Arabia should immediately begin assessing the impact of the amended AML law.

Recommended Next Steps

Conduct AML Gap Assessments

Review current AML controls against the amended legal requirements.

Update Internal Policies

Revise AML/CFT policies, procedures, and governance frameworks.

Strengthen Screening and Monitoring

Enhance sanctions screening, transaction monitoring, and beneficial ownership verification capabilities.

Reassess Customer Risk Ratings

High-risk customers and cross-border relationships may require enhanced due diligence.

Train Compliance Teams

Ensure AML teams understand the operational and legal implications of the new framework.

Monitor Regulatory Guidance

Additional implementing regulations and supervisory guidance from SAMA, CMA, and SAFIU are likely to follow.

Final Thoughts

Saudi Arabia’s approval of the amended Anti-Money Laundering Law through Council of Ministers Decision No. 748 and Royal Decree No. D/223 represents a major advancement in the Kingdom’s financial crime compliance framework.

The reforms significantly strengthen enforcement powers, expand confiscation mechanisms, introduce stricter penalties, and elevate compliance expectations across financial institutions and DNFBPs. More importantly, they demonstrate Saudi Arabia’s broader ambition to align with evolving FATF standards while supporting a secure and transparent financial ecosystem under Vision 2030.

For AML compliance leaders, the message is clear: proactive compliance, advanced monitoring capabilities, and risk-based governance are no longer optional in Saudi Arabia’s rapidly evolving regulatory landscape.

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