Saudi Arabia: Regulations to freeze terrorist funds in associations and family funds
In a strategic move aimed at strengthening charitable and financial work in the Kingdom of Saudi Arabia, the National Center for the Development of the Non-Profit Sector issued a binding guide for all non-profit organizations. This guide establishes precise frameworks and immediate mechanisms for implementing UN Security Council resolutions related to combating terrorism and its financing. This step complements the Kingdom's ongoing efforts to cut off the sources of terrorism and enhance the integrity of the local financial system.
Within the context of international and national commitment,
these measures fall under the broader framework of the Kingdom of Saudi Arabia’s adherence to international standards for combating money laundering and terrorist financing, particularly the recommendations of the Financial Action Task Force (FATF) and relevant UN Security Council resolutions. For years, the Kingdom has been working to develop its legislative and regulatory framework to ensure that the rapidly growing charitable sector, a key component of Vision 2030, is not exploited as a cover for any illicit activities. The integration of family trusts into this rigorous oversight is a significant development that closes all potential loopholes for the flow of suspicious funds.
Immediate Freezing Mechanisms: A Race Against Time.
According to the new guidelines, the mandatory scope includes all associations, civil society organizations, and family trusts under the center's supervision. The guidelines set a crucial timeframe for implementing sanctions, obligating organizations to freeze funds and assets and prohibit the provision of financial services "without delay"—that is, within hours of the issuance of sanctions list decisions and without prior notice to the targeted entities. This swift action aims to prevent the smuggling or concealment of assets, thus ensuring the effectiveness of sanctions imposed on organizations such as ISIS, al-Qaeda, and the Taliban, in addition to the names listed on the unified national list (1373) issued by the Presidency of State Security.
Legal Responsibility and Institutional Integration:
The National Center stressed the need for daily monitoring of the consolidated lists of the Security Council and the National Committee, emphasizing that any negligence in implementation exposes the organization and its officials to direct legal accountability. Within the framework of integration among state agencies, the Permanent Committee for Combating Terrorism, chaired by State Security, is responsible for classification and identification, while the National Center plays a monitoring role to ensure compliance. The guide also guarantees the rights of organizations through clear mechanisms for the immediate lifting of restrictions upon the removal of names from UN lists, while maintaining data confidentiality and protection.
Expected Impact: A Safe and Trustworthy Charitable Environment.
This guide is expected to enhance local and international confidence in the Saudi non-profit sector, encouraging donors and contributors to support development and charitable projects with the assurance that their funds are reaching their intended beneficiaries in a secure and rigorously controlled environment. This initiative also reflects the Kingdom's commitment to protecting its economic and social system from the risks of transnational financial crimes.
