The Saudi Central Bank (SAMA) announced on Friday the implementation of urgent temporary precautionary measures to combat financial fraud.
According to a circular issued by SAMA, banks operating in Saudi Arabia must adhere to a number of measures, including setting limits on daily electronic transfers and holding international transfers for 24 hours.
The Central Bank said that its steps came in line with powers entrusted to it to set instructions and procedures to protect bank customers, and take appropriate measures to counter financial criminal activity.
The Kingdom has witnessed an increase in fraud, due to the rapid development of financial services provided by banks through traditional and electronic channels, according to the circular issued by SAMA.
A recent meeting of The Financial Academy in Riyadh, held under the title, “Innovation and the future of investment in the banking sector,” pointed to the challenges faced by the Saudi banking sector in light of the rapid digital transformation.
CEO of Riyad Bank, Tariq Al-Sadhan, noted that the increasing risks of financial fraud constituted one of the biggest challenges facing banks in Saudi Arabia.
A recent scientific study prepared by the Naif Arab University for Security Sciences, in cooperation with the International Criminal Police Organization (Interpol), in early 2022, emphasized five types of financial fraud that are common in the Arab world.
The study analyzed 503 fraudulent internet advertisements, which attracted more than 137,000 potential victims.