RIYADH, 6 March — Saudi Arabian Monetary Agency, in cooperation with security agencies, has stepped up its campaign against unauthorized financial and banking transactions. The move is aimed at tracking down individuals and organizations engaged in unlicensed banking and financial activities, such as the purchase and sale of international stocks and foreign currencies.
A high-level source at SAMA told Arab News that the agency will not show any leniency in applying the rules and regulations to protect the interests of depositors and investors and preserve their rights, especially after complaints from Saudis and expatriates against such unlicensed individuals and companies. He said the new move was not linked with the Sept. 11 events.
The source said annual money transfers of expatriate workers accounted for 41 percent of the country’s revenues.
“The amount constitutes the money transferred through banks and there are billions of riyals sent abroad through financial channels other than banks,” he said.
“Some banks, investment firms and private agencies and individuals — mostly expatriates — collect money and market some banking services in the Kingdom. They transfer money to foreign countries after attracting deposits by marketing some investment funds. They also do business related to stocks and bonds. The activities are illegal as they are not licensed to provide such services,” he explained.
A number of insurance companies also market their services and policies in the Kingdom despite the fact that they do not have licenses.
“These unlicensed business activities put the investments of Saudis and expatriates in danger, because they are carried out illegally and are not monitored by legitimate authorities,” the source said, adding that SAMA will take punitive action against such individuals and agencies.
SAMA has intensified the inspection of organizations and individuals involved in illegal businesses and financial transactions.
“SAMA has also launched a media campaign to enlighten the public on the danger of dealing with such unauthorized individuals and firms,” he added.
SAMA recently closed down an office in Ahsa as it engaged in trading international stocks and foreign currencies without a license.
The office, located in a commercial complex on the Dhahran Street, was engaged in business in partnership with a foreign company. SAMA plans to close down another office that is engaged in similar business activities in Ahsa.
