The authorities in Saudi Arabia have reportedly approved stricter rules to combat money laundering and terrorism financing.

From next month, foreign exchange offices will have to abide by a new set of rules, reports Gulf News.

The regulations state all activity must be approved by the Saudi Arabian Monetary Authority (SAMA) and forex businesses must obtain a licence from SAMA which will need to be renewed every five years. Licenses can be revoked if businesses violate the new regulations.

Forex office responsibilities include a commitment to instructions against money laundering and terror funding, risk management and exposing dubious and fraudulent dealings.

Additionally, forex offices are not permitted to do the following as they are not approved by SAMA:

-managing banking accounts

– issuing letters of guarantee

– accepting deposits

– practising speculation in currency, metals and stocks

Forex businesses must also implement signs making customers aware of their rights, as well as a suitable work system to ensure customers are protected against fraud and privacy breaches.