Traditionally centred on retail banking, AML scrutiny now extends to fast-paced trading environments, where thousands of cross-border and high-frequency transactions occur every second.
Napier AI, a provider of AI-powered AML solutions, recently outlined three of the AML challenges facing capital markets in Saudi Arabia.
Capital markets handle thousands of transactions per second, particularly in equities, derivatives, and foreign exchange (FX). These trades often involve cross-border flows, layered instruments, and complicated ownership structures, making it difficult to trace the source of funds or identify the ultimate beneficial owner (UBO).
The regulatory framework in Saudi Arabia continues to evolve. From April 2025, new UBO rules require most companies to disclose and maintain accurate ownership information in a central register with the Ministry of Commerce. This move aligns with international standards and reflects the country’s push for corporate transparency and accountability.
In addition, the Capital Market Authority (CMA) recently introduced a major change by allowing foreign investors to hold shares in Saudi-listed firms that own property in Makkah and Madinah. This has triggered a rise in cross-border investment activity, adding to the compliance workload for capital markets firms.
Many firms still rely on legacy tools not built for high-speed or AI-based screening. According to the Napier AI / AML Index, Saudi Arabia could cut over half its compliance costs by adopting AI-powered screening platforms.
Napier AI’s technology applies real-time, contextual screening, reducing false positives and enabling quick, risk-based decisions. It learns from analyst feedback and supports multi-jurisdictional configurations—essential in today’s evolving capital markets.
Real-time AML screening ensures faster detection, better risk management, and operational efficiency—making it critical for maintaining regulatory alignment and uninterrupted trading.
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