Secretary General of the Union of Arab Banks: No effect of the European decision on the banks of the Kingdom

by **claud39** Fri Feb 15, 2019 6:55 am

http://www.uabonline.org/en/news/arabicnews/15751604157516051610160615751604159315751605160415/60554/0

Secretary General of the Union of Arab Banks: No effect of the European decision on the banks of the Kingdom

15/02/2019

Secretary General of the Union of Arab Banks: No effect of the European decision on the banks of the Kingdom Rc_155021630025_23

The Secretary-General of the Union of Arab Banks, Wissam Fattouh, condemned the decision of the European Commission to include Saudi Arabia in its money laundering list, asserting that Saudi banks are among the most committed Arab banks to implement the laws and legislations to combat money laundering and terrorism financing.
He stressed that the sources of illicit funds 'non-existent' in Saudi Arabia, especially after the recent entitlements and anti-corruption campaign launched by Saudi Arabia last, which blocks the way to any attempt to obtain banks illegal funds.
Fattouh is not concerned about the decision of the European Commission, even if the European Parliament and the Council voted in favor of the black list of money laundering established today as two basic considerations:
First, the announcement by the US Treasury Department that it will not approve the ECLAC regulation is a clear confirmation that correspondent banks have not and will not sever their relations with Saudi banks. 90% of financial transactions are through US correspondent banks rather than European banks. Finance in America will not recognize this list and will not take it into account even if it is ratified by the European Parliament.
FATF is the international framework for combating money laundering and counterterrorism, which is the only internationally recognized regulation, and therefore the European Commission's decision today is a clear violation of the basic anti-money laundering mandate.
According to Fattouh, the European Commission's list was not thoroughly reviewed before it was issued, and its criteria are based on political background rather than factual facts. "I smell the smell of political dimensions, far from assessments based on field visits, This regulation contradicts the contents of the FATF report last September, praising the fundamental amendments adopted by the Kingdom to the AML / CFT system to make its legal and institutional systems compatible with FATF's latest recommendations.
The report said that Saudi Arabia "demonstrated the ability and will to combat the financing of terrorism, reflected in the conduct of 1,700 investigations and convictions since 2013, mostly focused on domestic attempts to finance terrorism."
The Secretary of the Union of Arab Banks does not underestimate the importance of the decision issued by the European Commission today, but in his opinion the effect is only marginally, which may initially translate into correspondent banks to become more committed to compliance with all relevant international standards and principles.