Saudi Arabia increases oversight on financial transfers to the UAE

Saudi Arabia has implemented enhanced regulatory oversight on financial transfers to the United Arab Emirates, applying scrutiny levels typically reserved for high-risk jurisdictions. According to sources with direct knowledge, the Saudi central bank notified major domestic banks earlier this year to apply additional checks on settlements involving the UAE to mitigate risks related to money laundering and terrorism financing.

Several businesspeople reported that their companies have experienced delays or the return of fund transfers in various currencies without official explanation. Some transactions have reportedly taken weeks to process, leading some firms to use third-party countries to complete payments.

The Saudi central bank stated there are no direct restrictions on specific countries and emphasized that its regulatory framework aligns with Financial Action Task Force (FATF) standards. It noted that banks apply controls based on internal risk assessments and institutional appetite. While the UAE was removed from the FATF grey list in 2024, these new measures suggest growing regulatory friction between the two Gulf neighbors amid diverging political and economic interests.