Saudi Arabia Tightens Oversight on UAE Bank Transfers Amid Tensions
Saudi Arabia has tightened its anti-crime oversight on bank transfers to the UAE, a move that could signal escalating tensions between the two wealthy Gulf monarchies. This new measure puts the UAE among over half a dozen countries in the region deemed high-risk for financial crimes by Saudi authorities.
The enhanced scrutiny was applied after Saudi Arabia's central bank required banks in the country to apply additional checks when dealing with customers or jurisdictions that pose greater risks for money laundering, terrorism financing, and other crimes. This move has led to difficulties for companies transferring funds from Saudi accounts to UAE-based firms, with some reports of delayed or returned transactions.
The UAE was previously delisted by the Financial Action Task Force (FATF) in 2024 after making improvements to its anti-money laundering regime. However, concerns have been raised about the country's continued vulnerability to financial crimes, with some analysts arguing that the removal from the FATF list was premature.
The rift between Saudi Arabia and the UAE has grown over various issues, including oil quotas, geopolitical influence, and the war in Yemen. While trade between the two nations remains significant, the tensions have raised concerns about a potential economic rupture.