Compliance at Alinma Bank
Alinma Bank is a Saudi joint-stock company established under Royal Decree No. (M/15) dated 28/02/1427 (corresponding to 28/03/2006), and Cabinet Decision No. (42) dated 27/02/1427 (corresponding to 27/03/2006), in accordance with the provisions of the Companies Law issued by Royal Decree No. (M/6) dated 22/03/1385H (corresponding to 20/07/1965), and the Banking Control Law and Cabinet Decision No. (245) dated 26/10/1407H, as well as other applicable regulations in the Kingdom of Saudi Arabia. The bank's purpose is to engage in banking and investment activities, with its headquarters located in Riyadh.
The bank adheres to all applicable regulations, rules, instructions, and international standards, which reflect on its values and professional practices, as well as on its clients and entities in all its activities and tasks.
The primary goal of the Compliance Department at Alinma Bank is to maintain the bank’s reputation and credibility, protect the interests of shareholders and depositors, and provide protection against penalties and violations. This includes implementing and fostering a culture of compliance across all the bank's activities and protecting its interests. Efforts are made to mitigate compliance risks by providing advice, oversight, and monitoring, enhancing client and shareholder trust by maintaining the bank’s integrity and reputation, and ensuring the highest standards of security and protection. The bank does not tolerate any form of non-compliance with policies and regulations. Periodically and continuously, the bank assesses risks to minimize compliance breaches by issuing policies, procedures, and internal regulations that all employees and stakeholders must adhere to. The bank has a Code of Conduct and Ethics which is mandatory for all its employees.
Code of Conduct and Ethics
Our commitment to high values is the foundation of our pride, achieved by maintaining our integrity and good reputation. This is guided by our Code of Conduct and Ethics, which directs all bank employees on the desired behavior. This policy is designed to ensure that our business is conducted ethically and that our operations are based on our ethical values rather than on gifts or offers we provide or receive. Therefore, our policy outlines clear conditions regarding what the bank permits its employees to accept or offer in terms of gifts and benefits. No employee is allowed to compromise on integrity or engage directly or indirectly in any form of bribery or corruption.
Anti-Bribery, Corruption, and Financial Fraud
Alinma Bank is committed to implementing approved policies to combat bribery, corruption, and financial fraud. These policies ensure comprehensive procedures to address these issues and define different roles and responsibilities for effective monitoring. The Board of Directors oversees the mechanisms and strategies for combating bribery, corruption, and financial fraud implemented by the bank. The bank has established an appropriate control environment and reporting channels for any potential bribery, corruption, or financial fraud activities through its Whistleblower Program and other internal and external means, including regular effectiveness tests.
Reporting Violations
Alinma Bank is committed to its core values and ethical practices, which contribute to a safe and reliable environment where employees, partners, clients, and stakeholders can report violations in good faith without fear of reprisal. The bank believes in the importance of building a culture of integrity and transparency that enhances trust among all parties. The whistleblowing policy is a crucial part of this commitment, ensuring a safe and encouraging work environment that promotes adherence to ethical and professional standards. The bank provides secure and confidential reporting mechanisms, handling reports with complete confidentiality and professionalism. Reporters have the option to remain anonymous, and if they choose to disclose their identity, the bank’s policy is based on protecting whistleblowers from any retaliation, intimidation, or threats as a result of their report.
You can report through this link here
Training and Awareness
One of the core responsibilities of the Compliance Department is training and awareness, which is essential for promoting a culture of compliance. The bank provides periodic training and awareness sessions on compliance with regulations and anti-financial crime measures, including money laundering and terrorism financing, to all employees, executives, board members, and new hires. This aims to raise awareness and provide the latest instructions and updates in the field of financial crime prevention. Specialized training is also provided to high-risk business sectors and sensitive departments.
The bank uses various channels for delivering training and awareness programs, such as e-learning platforms, classroom sessions, SMS services, internal communication networks, and social media.
Anti-Financial Crime and Money Laundering
Alinma Bank is committed to applying the highest local and international standards in combating financial crimes, including money laundering, terrorism financing, commercial concealment, weapons proliferation, and sanctions screening. This includes adhering to the recommendations of the Financial Action Task Force (FATF) and local regulations, as well as guidelines from the Saudi Central Bank (SAMA) and other regulatory requirements.
The bank relies on a comprehensive anti-money laundering and counter-terrorism financing program to prevent the misuse of banking services by individuals, companies, and trade centers for illicit activities. The bank is committed to implementing policies and procedures for combating money laundering and terrorism financing in accordance with local and international guidelines. These policies include programs such as "Know Your Customer," transaction monitoring, sanctions screening, and independent effectiveness testing. Compliance programs are reviewed through periodic visits by SAMA and evaluations by internal and external auditors.
Policy on Personal Conduct and Internal Information Trading
The bank’s policies prohibit employees from misusing any material internal information for personal gain.
Conflict of Interest
Alinma Bank is committed to working in the best interest of its clients and shareholders and addresses any conflicts of interest through established policies, disclosures, and other appropriate measures to avoid actual or potential conflicts of interest.
Information Security
Alinma Bank is committed to strictly applying its security policies to ensure the confidentiality and complete security of customer data, and to maintaining accurate and rigorous procedures for protecting the security and privacy of customer information.
"Know Your Customer" Program
The bank implements and enforces the "Know Your Customer" procedures to ensure that all relevant customer information is accurately identified and documented. Clients are required to provide current and valid documents to verify their identity, and appropriate due diligence measures are taken to update and verify customer information from reliable sources based on risk assessment or specific needs.
The bank prohibits establishing relationships with shell banks or opening accounts for individuals or entities with unknown, forged, or non-existent identities in the Kingdom as per the instructions provided.
The bank assesses the risks of money laundering for clients before establishing relationships and periodically to ensure that the risk level does not exceed acceptable limits. This includes evaluating risks associated with geographic locations, client relationships, and products and services, and updating the risk assessment methodology as necessary.
Customer Transaction Monitoring Program
The bank monitors and tracks customer account activities by identifying suspicious transactions using an electronic monitoring system based on money laundering patterns and scenarios that do not match client profiles. This allows authorized financial crime and money laundering staff to take necessary actions to verify client transactions, investigate, and address suspicious activities, and report to relevant authorities both inside and outside the bank. The bank corrects accounts violating regulations and implements corrective plans while developing and upgrading high-efficiency monitoring programs.
Independent Effectiveness Testing for Anti-Money Laundering
Alinma Bank adopts a risk-based approach to evaluate banking activities, products, and services to identify and mitigate risks related to money laundering. A comprehensive risk register for money laundering risks is maintained, and internal vulnerabilities are addressed regularly.
Sanctions Screening and Monitoring Program
The bank uses an appropriate system to screen transactions and clients against local and international sanctions lists, such as those from the UN Security Council, the Office of Foreign Assets Control, the European Union, and names from SAMA. This system helps the bank mitigate the risk of non-compliance with sanctions-related instructions and avoid engaging in unlawful or non-compliant activities. The bank complies with local and international requirements related to listed individuals, entities, or related parties.
Correspondent Banks
The bank has policies ensuring that dealings are conducted only with correspondent banks that are licensed to operate in their respective countries. The bank adheres to the Saudi Central Bank's regulations prohibiting relationships with shell banks and applies due diligence models, including internal and Wolfsburg models, to evaluate correspondent banks' anti-money laundering and counter-terrorism financing policies. Periodic reviews of each bank are conducted based on a risk-based approach.
Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard
In line with the agreement between the Government of Saudi Arabia and the Government of the United States of America to implement FATCA, Alinma Bank is committed to applying related policies and reporting standards to all clients, operations, employees, and executives. This involves adhering to legislative and regulatory obligations to protect the bank's reputation, financial status, and stakeholders, according to FATCA and Common Reporting Standards. The bank has been compliant with these regulations since their issuance and periodically reports information on American accounts while conducting regular reviews to identify compliant accounts.
Global Intermediary Identification Number (GIIN)
The Global Intermediary Identification Number for Alinma Bank is (DZG29E.99999.SL.682).
For more information about Alinma Bank, please visit our website.
For more information related to the Saudi Central Bank (SAMA), please visit their website.
To report violations, please visit the provided link.