RIYADH: The Ministry of Interior has revealed that e-transactions, stock markets and festivals are being used regularly for money laundering and terrorism financing. It called on financial and other institutions to have the necessary internal controls in place to counter these criminal acts, including ways to identify their customers. A learned source told Okaz/Saudi Gazette money laundering can be done in various ways including dividing large amounts of money into small amounts which can be deposited easily in bank accounts or be used to trade in stocks or bonds without arousing any suspicion. The source reiterated that the most commonly used money laundering methods are e-transactions, money orders, traveler's checks, depositing money at ATMs and setting up fake companies. He said money launderers often have agents working inside financial institutions to help them with their transactions. He said there are supervisory and control bodies such as the Ministry of Trade and Industry, Saudi Arabian Monetary Agency (SAMA) and Capital Market Authority which have measures in place to fight money laundering. In addition, there is the Financial Action Task Force on Money Laundering (FATF), which is an intergovernmental body for the development and promotion of national and international policies to combat money laundering and terrorism financing. It is a policy-making body that works to generate the necessary political will to bring about legislative and regulatory reforms in these areas. Other tools used for money laundering and terrorism financing are guaranteed loans, opening of letters of credit and using big import contracts and mega projects as fronts.
