The Saudi Insurance Authority mandates insurers to comply with new beneficial ownership transparency standards within 30 days, leveraging digital platforms to enhance anti-money laundering efforts and business transparency.
Saudi Arabia’s Insurance Authority has told insurers to comply with the Kingdom’s beneficial ownership rules within 30 days, reinforcing a wider push by regulators to make company ownership more transparent and easier to verify. Saudi Gazette reported that the circular restates the authority’s role in supervising the insurance sector while linking the new expectations to anti-money laundering, counter-terrorism financing and beneficiary rules already in force.
The move comes after the Ministry of Commerce updated the Kingdom’s beneficial ownership framework late last year. According to the revised rules, a natural person is treated as the beneficial owner if they hold at least 25% of a company directly or indirectly, or if they exercise effective and ultimate control. If neither test applies, the designation can fall to a manager, board member or chairman, depending on the company’s structure. The rules also require people holding shares on behalf of others to disclose that arrangement and report changes within 15 days.
The Insurance Authority said insurers should use the Ministry of Commerce’s Wathiq platform to access approved beneficial ownership data and carry out customer due diligence, including identity checks by authorised staff. If a hidden beneficial owner is found or disclosed information does not match what emerges during due diligence, the ministry must be notified through the platform. Those obligations sit alongside separate duties to report suspicious transactions and to comply with personal data protection rules.
The circular also points to a service from the National Center for Development of the Non-Profit Sector that allows companies to identify beneficial owners through its website and report discrepancies. The broader regulatory direction appears clear: Saudi Arabia is tightening disclosure standards across both financial and corporate channels, while giving institutions digital tools to confirm who really controls a business.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
