Saudi Banks Apply Enhanced AML Checks to UAE-Bound Transfers, Reuters Reports
Saudi banks have begun applying additional anti-money laundering and counter-terrorist financing checks to transfers destined for the United Arab Emirates, according to a Reuters report published on 18 August 2026. The measures have not been publicly announced as a new Saudi regulatory rule, but Reuters said three people with direct knowledge of the matter described UAE-bound transfers as receiving extra scrutiny normally associated with higher-risk illicit-finance exposure.
The practical impact is already being felt by businesses. Six businesspeople told Reuters that transfers in several currencies from Saudi accounts to the UAE had been delayed or returned without a formal explanation. Some companies have reportedly responded by routing payments through third countries, increasing cost and operational complexity for cross-border treasury activity.
Existing Saudi rules already require risk-based enhanced due diligence
The reported change sits within Saudi Arabia’s existing risk-based AML/CFT framework rather than, at least for now, a publicly announced UAE-specific rule. The Saudi Central Bank’s in-force rulebook requires financial institutions to identify higher-risk customers, business relationships and jurisdictions and apply enhanced due diligence proportionate to the risk.
For higher-risk relationships, the rules allow or require additional measures such as obtaining and verifying source-of-funds information, collecting further customer and transaction information, conducting closer transaction monitoring and documenting the enhanced controls applied. Saudi AML law also requires enhanced due diligence for business relationships and transactions involving persons from countries identified as higher risk by the institution or relevant Saudi authorities.
Reuters said the Saudi Central Bank, known as SAMA, did not publicly identify the UAE as a high-risk jurisdiction in response to questions about the reported measures. SAMA instead referred to its broader responsibility to ensure banks mitigate money-laundering and terrorism-financing risks. A UAE official told Reuters that authorities had not received complaints from the Saudi side and stressed the depth of economic ties between the two countries.
Compliance implications for cross-border payments
For banks and corporate treasury teams, the development is important because enhanced jurisdictional scrutiny can affect payment execution even without a newly published sanctions regime or formal prohibition. Transfers may face additional questions on counterparties, beneficial ownership, transaction purpose, source of funds and supporting commercial documentation before being released.
The key distinction is that Reuters is reporting a change in supervisory or banking practice, not a publicly issued Saudi rule designating the UAE as a high-risk country. Compliance teams should therefore treat the development as a risk-management signal and monitor for any subsequent SAMA circular, guidance or formal policy statement that clarifies the scope or duration of the enhanced checks.
