Saudi Arabia Increases Regulatory Oversight on Bank Transfers to UAE

Saudi Arabia has implemented additional regulatory oversight for financial transfers to the United Arab Emirates, treating the country as a high risk jurisdiction for illicit money flows. According to three people with direct knowledge of the matter, the Saudi central bank notified key banks to apply enhanced checks to mitigate risks related to money laundering and terrorism financing. These measures were not announced publicly, but six businesspeople reported that their companies have experienced delayed or returned transfers in various currencies without official explanation.

The Saudi central bank denied that there are direct restrictions on specific countries. It stated that all banks in the Kingdom apply controls based on internal assessments and global standards set by the Financial Action Task Force (FATF). A UAE official stated that the economy ministry has not received reports of unusual delays and emphasized the deep economic ties between the two nations.

Sources indicate that the UAE is now among more than a half dozen countries in the region deemed high risk by Saudi Arabia, including Iraq, Lebanon, and South Sudan. While the FATF delisted the UAE in 2024, some anti corruption groups have argued the move was premature. A Saudi insider and four regional financial sector sources suggested the enhanced oversight serves as a subtle message to Emirati leaders amid escalating tensions between the two monarchies.