Saudi Arabia lowers mandatory declaration threshold for cash, valuables at borders

Saudi Arabia has tightened its regulations on the declaration of cash and valuables at its borders, lowering the mandatory threshold for travelers. Under updated executive regulations to the Anti-Money Laundering Law, individuals entering or leaving the Kingdom must now declare items worth SR40,000 ($10,600) or more, a reduction from the previous SR60,000 ($16,000).

The revised rules, published in the official gazette Umm Al-Qura, apply to cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, and jewelry. The Zakat, Tax and Customs Authority (ZATCA) has been granted expanded powers to inspect travelers, vehicles, and cargo within customs zones. This includes the authority to seize undeclared or falsely declared assets for up to 72 hours if they are suspected of being linked to criminal activity or money laundering, even if below the declaration threshold.

ZATCA is required to document all seizures and conduct preliminary inquiries into the origin of the assets and the reasons for non-compliance. Seized currency will be deposited into a trust account, while precious metals and gemstones will be held in customs custody. The Public Prosecution can extend seizure periods up to 60 days, with further extensions requiring court approval.

Travelers carrying items like gold bullion or gemstones valued at SR40,000 or more must provide purchase invoices for verification. If these items are deemed for commercial purposes, they will be subject to standard customs laws. The amendments also bolster anti-money laundering measures for financial institutions, mandating group-wide information sharing for customer due diligence and risk management, while respecting confidentiality and data protection laws. Financial institutions must also identify ultimate beneficial owners of legal entities.