Saudi Arabia Advocates for Stronger Global Cooperation Against Illicit Finance
Saudi Arabia has voiced strong support for enhanced global action to combat illicit financial activities, with central bank governor Ayman Al-Sayari emphasizing the need for coordinated international efforts during key financial gatherings in Washington. The comments were delivered at the Financial Action Task Force ministerial meeting, which was held alongside the International Monetary Fund and World Bank Spring Meetings, where ministers reaffirmed their commitment to tackling money laundering, terrorist financing, and proliferation risks through unified global strategies.
FATF's Role in Safeguarding Financial Integrity
According to remarks released by the Saudi Central Bank, Al-Sayari highlighted the critical role of the FATF in establishing and promoting global standards that protect the integrity of the international financial system. He stated, "Saudi Arabia emphasizes the critical role of FATF in establishing and promoting global standards that safeguard the integrity of the international financial system." His remarks align with the ministerial consensus that illicit finance poses significant threats to economic growth, security, and institutional integrity worldwide.
The ministerial declaration issued at the meeting warned that illicit finance continues to fuel crime, fraud, and terrorism, undermining economic growth and financial stability. It called for faster implementation of global standards and stronger cross-border cooperation to address these challenges effectively.
Saudi Arabia's Regulatory Alignment and Reforms
Saudi Arabia, which became a member of the FATF in 2019, has been actively strengthening its financial regulatory framework in recent years as part of broader efforts to modernize the economy, deepen capital markets, and align with international standards under Vision 2030. Al-Sayari noted that the Kingdom supports adopting a risk-based approach in implementing international standards requirements and mutual evaluation processes, while also welcoming financial innovations.
He further endorsed FATF's outcome-oriented strategic priorities, particularly the mutual evaluations planned for the period of 2026–2028, stating, "We stand ready to contribute to and benefit from this enhanced focus on effectiveness." Al-Sayari also highlighted recent regulatory reforms, including amendments to Saudi Arabia's anti-money laundering law that are aligned with FATF recommendations. These amendments strengthen confiscation frameworks, international cooperation, and supervisory oversight to ensure effective implementation of anti-illicit finance measures.
Resilience of Saudi Arabia's Banking Sector
Separately, SAMA Deputy Governor for Investment Majid Alawwad pointed to the resilience of the Kingdom's banking sector, citing strong capital buffers, liquidity levels, and asset quality. Speaking during a meeting of central bank governors from the Middle East and Central Asia, Alawwad noted that limited external exposure helps contain the transmission of risks and strengthens the banking sector's ability to maintain stability.
He added, "SAMA's stress testing exercises continue to confirm the banking system's ability to withstand severe shocks, reinforcing confidence in the sector's resilience under a range of scenarios." Alawwad also emphasized that SAMA's macroprudential stance remains forward-looking, supported by a comprehensive surveillance framework and an effective policy toolkit.
Call for International Cooperation on Evolving Risks
Saudi Arabia further called for stronger international cooperation, including through FATF-style regional bodies, to address evolving risks such as fraud, virtual assets, and emerging technologies. The Kingdom also advocated for advancing transparency in cross-border payments under the G20 roadmap, underscoring its commitment to global financial security and stability.
This proactive stance reflects Saudi Arabia's ongoing efforts to align with international best practices and contribute to a safer, more secure global financial environment, reinforcing its position as a key player in the fight against illicit finance.
