Ayman M Al-Sayari: Speech - Addressing Financial Crime, Fraud, and Corruption as Barriers to Growth and Stability Session

Why It Matters

Financial crime erodes investor confidence and hampers Saudi’s diversification goals, making robust anti‑money‑laundering measures essential for attracting legitimate capital. The kingdom’s comprehensive reforms signal a stronger, more transparent financial ecosystem that can compete globally.

Key Takeaways

• $3.1 trillion illicit funds flowed globally in 2023.
• Saudi Central Bank uses risk‑based supervision and AI analytics.
• SAFIU traces, freezes, confiscates criminal proceeds since 2017.
• Transparency reforms align Saudi with FATF standards.
• Regulatory sandboxes test fintech under strict AML/CFT controls.

Pulse Analysis

The scale of illicit finance has reached unprecedented levels, with the United Nations estimating that $3.1 trillion—roughly 2.7 percent of global GDP—was laundered through banks, corporations, and shadow networks in 2023. Such flows distort capital allocation, inflate compliance costs, and undermine the credibility of financial markets. For economies pursuing rapid diversification, like Saudi Arabia, the threat is especially acute because unchecked money‑laundering can deter foreign direct investment and stall the transition from oil dependence. Recognizing this, Governor Ayman Al‑Sayari used the IMF‑World Bank forum to underscore the urgency of coordinated action.

Saudi Arabia’s response blends regulatory rigor with cutting‑edge technology. The Central Bank has shifted to risk‑based supervision, leveraging artificial intelligence and big‑data analytics to flag suspicious transactions across both banks and non‑bank entities. The Saudi Financial Intelligence Unit, operational since 2017, now collaborates closely with law‑enforcement agencies to trace, freeze, and confiscate illicit proceeds. Parallel reforms in beneficial‑ownership disclosure bring the kingdom in line with FATF recommendations, while public‑procurement digitisation and enhanced oversight tighten governance. A regulatory sandbox framework further ensures fintech innovations are tested under strict AML/CFT conditions, preserving the benefits of digital finance without compromising security.

The cumulative effect of these initiatives is a more resilient financial ecosystem that can attract clean capital and support Vision 2030’s diversification agenda. International investors gain confidence from transparent ownership registers and robust anti‑corruption safeguards, while Saudi firms benefit from reduced fraud losses and lower compliance risk. Moreover, the emphasis on data‑driven supervision positions the kingdom as a regional leader in fintech safety, encouraging cross‑border partnerships and knowledge sharing. As global regulators tighten standards, Saudi Arabia’s proactive stance may become a benchmark for emerging markets seeking to balance growth with financial integrity.

Ayman M Al-Sayari: Speech - Addressing financial crime, fraud, and corruption as barriers to growth and stability Session

Speech by His Excellency Mr Ayman Al‑Sayari, Governor of the Saudi Central Bank · International Monetary Fund and World Bank Group Annual Meetings, Washington DC · 16 October 2025

Financial crime – be it money laundering, fraud, or financing of illicit activities – has profound and far‑reaching negative implications, and is a challenge that has grown exponentially in magnitude – with an estimated $3.1 trillion in illicit funds estimated to have flowed through the global financial system in 2023.

Their impact extends far beyond individual institutions or borders: they distort resource allocation, deter legitimate investment, and weaken the credibility of financial systems.

The costs associated with such crimes are substantial and continue to rise. These range from reduced revenues, increased expenses, penalties, loss of banking services, and even heightened financial instability. Losses from fraud scams and bank fraud alone were estimated to be over $485 billion in estimated losses globally in 2023.

In Saudi Arabia, we take this challenge very seriously. Our response has been strategic, system‑wide, and firmly anchored in Saudi Vision 2030, which places integrity and transparency at the core of economic transformation. Over the past decade, Saudi Arabia has built comprehensive national AML/CFT and anti‑corruption frameworks, augmented by high‑level national committees to coordinate policy response to combat financial crime—integrating preventive, supervisory, investigative, and judicial efforts.

This approach reflects our view that collaboration is imperative to prevent, identify, and alleviate the impacts of financial crimes. All stakeholders, including governments, financial institutions, and businesses, have a responsibility in the fight against financial crimes.

At the Saudi Central Bank, our efforts have been prioritized to tackle the most prominent risks posed by financial crime to our economy. I would highlight actions in four areas in particular:

1. Risk‑based supervision – To ensure the integrity and soundness of our financial sector, we have invested heavily in risk‑based supervision of both banks and non‑banks, enhanced the use of data and analytics to detect illicit activity, and nurtured a strong compliance and consumer‑protection culture within our financial institutions.

2. Saudi Financial Intelligence Unit (SAFIU) – Created in 2017, SAFIU has been empowered to conduct proactive financial analysis and coordinate with law enforcement to trace, freeze, and confiscate proceeds of crime.

3. Transparency and beneficial‑ownership disclosure – We have made substantial progress in aligning with FATF standards and international best practices, an essential step in protecting Saudi Arabia’s financial reputation and ensuring that every Riyal circulating in our economy contributes to productive, legitimate growth.

4. Governance reforms – We have advanced transparent public procurement, digitalised government services, and empowered oversight bodies, embedding these reforms throughout our strategies to diversify the economy, ensure that investments enhance the overall economy of Saudi Arabia, and uphold the integrity of its financial sector.

Saudi Arabia is an open economy that welcomes foreign investment, but we are equally cautious in ensuring that such investments are clean, traceable, and free of criminal origin. To do so, we proactively cooperate with foreign regulatory counterparts to ensure intelligence sharing and effective vigilance.

Through these actions, we continue to build a strong, transparent, and resilient financial system that attracts legitimate capital and repels illicit flows – this is not only a moral imperative, but also an economic necessity.

The adoption of state‑of‑the‑art technology and innovation is central to the Saudi Vision 2030 strategy. We continue to expand the use of digital payments, artificial intelligence, and open‑banking frameworks to improve efficiency and financial inclusion. Still, we are equally focused on ensuring that these innovations are not misused to facilitate financial crime.

A vital tool in this effort is the regulatory sandboxes established by the Saudi Central Bank to safely test novel financial‑technology solutions, combined with robust AML/CFT requirements. These sandboxes allow us to ensure that new fintech business models are properly licensed with strong fit‑and‑proper tests, and subject to risk‑based controls in keeping with standards applied to traditional financial institutions.

Simultaneously, we also invest heavily in advanced data analytics and cyber resilience, enabling early detection of fraud, suspicious transactions, and cross‑border risks. This balanced approach—encouraging innovation while safeguarding integrity—is at the heart of our sustainable digital transformation agenda.

Thank you.

The views expressed in this speech are those of the speaker and do not necessarily reflect those of the BIS.