Saudi Arabia Lowers Border Cash Declaration Threshold to SAR 40,000

Travellers entering or leaving Saudi Arabia will now be required to declare cash and certain valuables worth SAR 40,000 or more under updated executive regulations to the Kingdom's Anti-Money Laundering Law.

The new threshold replaces the previous declaration limit of SAR 60,000 and applies to cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, jewellery and similar valuables, or their equivalent value in foreign currency.

Under the revised regulations, published in the official gazette Umm Al-Qura, the Zakat, Tax and Customs Authority has expanded powers to inspect individuals, vehicles, shipping containers and postal parcels within customs zones. The authority may seize undeclared or falsely declared assets for up to 72 hours if there are suspicions of money laundering or another underlying offence, even where the value falls below the declaration threshold.

Travellers carrying gold bullion, precious metals, gemstones or jewellery worth SAR 40,000 or more must also present purchase invoices to customs officials to verify their value. Items determined to be intended for commercial purposes will be subject to the Unified Customs Law and its executive regulations.

The amendments also strengthen anti-money laundering compliance requirements for financial institutions and designated non-financial businesses by requiring group-wide information-sharing policies and the identification of ultimate beneficial owners holding at least a 25% stake or exercising effective control over a legal entity.

Violations of the declaration requirements may result in fines ranging from 10% to 25% of the value of seized assets for a first offence where no money laundering is suspected, rising to as much as 50% for repeat offences. Cases involving suspected money laundering or other predicate offences will be referred to the Public Prosecution.