Riyadh: Saudi Arabia has tightened gold declaration rules for travellers by lowering the reporting threshold to Saudi Arabian Riyals (SAR) 40,000 (Rs 10,08,846), under updated anti-money laundering (AML) regulations.
According to Arabic daily Okaz, travellers entering or leaving the Kingdom with gold bullion, precious metals, gemstones or manufactured jewellery worth SAR 40,000 or more must submit a written customs declaration and provide a purchase invoice to verify the value of the items. The previous declaration threshold was SAR 60,000.
The updated regulations authorise the Zakat, Tax and Customs Authority (ZATCA) to seize undeclared cash, precious metals, gemstones or jewellery for up to 72 hours where there is a failure to declare or suspicion of money laundering. Suspected cases will be referred to the Public Prosecution and the General Department of Financial Investigations.
Travellers who fail to declare qualifying assets may face fines of between 10 and 25 per cent of the value of the seized items for a first offence where no money laundering is suspected. The penalty increases to 50 per cent for repeat offences, while cases linked to suspected financial crimes will be referred for legal action.
Broader anti-money laundering measures
The revised regulations also introduce a risk-based compliance framework requiring financial institutions and designated non-financial businesses to assess and regularly review money laundering risks linked to customers, products, services, transaction channels and jurisdictions. They must document the findings and update them whenever significant changes occur.
Institutions are also required to verify customer identities, identify beneficial owners holding at least a 25 per cent stake in a legal entity, establish the source of funds and monitor business relationships. They may refuse transactions or terminate relationships if the required information cannot be verified.
The amendments further require enhanced due diligence for politically exposed persons, including senior government officials, their family members and close associates. In addition, all domestic and international financial transfers must include complete sender and beneficiary information.
The General Department of Financial Investigations has also been granted expanded powers to analyse reports, exchange information with domestic and international counterparts, suspend suspicious transactions for up to seven working days and seek precautionary freezes on assets linked to money laundering investigations.
