In a strategic move aimed at strengthening the financial system of the third sector in the Kingdom of Saudi Arabia, the Board of Directors of the National Center for the Development of the Non-Profit Sector a new guiding manual, obligating all non-profit organizations, including associations, civil institutions and family funds, to implement the precise mechanisms of the UN Security Council resolutions related to combating terrorism and its financing.
Details of the new guidance manual and circular
The Center issued an urgent circular to the chairpersons and trustees of various non-profit organizations, informing them of Board Resolution No. Q/25/16/7, dated 19 Jumada al-Thani 1447 AH. This newly adopted guide aims to raise awareness and ensure compliance within these organizations, outlining detailed procedures to guarantee the full implementation of Security Council resolutions, in accordance with State Security Presidency telegram No. 103215.
Legal basis and legal reference
This firm regulatory measure is based on the powers granted to the center for financial and administrative oversight under Cabinet Resolution No. 618. It also implements Article 82 of the Law on Combating Terrorism Crimes and their Financing, issued by Royal Decree No. M/21, which grants regulatory bodies the right to issue binding instructions and rules for non-profit organizations to ensure they are not exploited for any illegal activities.
The context of governance and the Kingdom's Vision 2030
This step comes within the framework of the Kingdom's ongoing efforts to develop the non-profit sector, which is a cornerstone of Vision 2030. The Vision aims to increase the sector's contribution to the GDP, which requires a robust legislative and regulatory framework that ensures transparency and good governance. The commitment of associations to the Security Council's regulations not only protects them legally but also enhances the confidence of donors and supporters, ensuring that donations reach their intended beneficiaries without any suspicion.
International significance and compliance with global standards
Internationally, this decision reflects the Kingdom of Saudi Arabia’s full commitment to international standards for combating money laundering and terrorist financing, and to the recommendations of the Financial Action Task Force (FATF). The rigorous application of these controls enhances the Kingdom’s ranking in global financial transparency indices and underscores its leading role in combating terrorism and cutting off its funding sources, thereby strengthening the integrity of the Saudi financial system and its secure integration with the global economy.
Implementation and communication mechanisms
For his part, the Acting CEO of the Center, Dr. Yahya Al-Musattah, stressed the importance of non-profit organizations immediately implementing the guidelines. To facilitate access to information, the Center made the guide available on its official website and via the QR code included in the circular. He encouraged contacting customer care channels for any inquiries, ensuring the sector's effective and safe contribution to national development.
