Saudi Arabia has reportedly imposed tighter anti-money-laundering and financial-crime checks on bank transfers to the UAE, causing some payments to be delayed or rejected, Reuters reported today.
- Saudi banks are subjecting UAE-bound transfers to enhanced scrutiny normally applied to higher-risk jurisdictions.
- Several businesses reported transfers being held for weeks, returned, or routed through third countries.
- Saudi Arabia’s central bank denied imposing direct restrictions on the UAE, saying banks apply risk-based controls to combat money laundering and terrorism financing.
- The UAE said it had not received formal complaints about unusual transfer problems.
- The move comes amid growing Saudi-UAE tensions over Yemen, oil policy, Iran and competition for regional investment and business.
- Despite the tensions, analysts say a major economic break is unlikely because the two economies remain deeply interconnected.
Bottom line -The stricter banking checks appear to be both a financial-crime precaution and potentially a subtle diplomatic signal from Riyadh to Abu Dhabi.
MDW Live! News Network 
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