The Saudi Organization for Certified Public Accountants (SOCPA) has published the Beneficial Ownership Guidance Manual as part of its ongoing efforts to strengthen compliance with the requirements of anti-money laundering (AML), countering the financing of terrorism (CFT), and countering the proliferation of weapons financing, in line with the regulations and rules adopted in the Kingdom of Saudi Arabia and relevant international standards.
The manual targets licensed practitioners in the accounting and auditing profession and its related branches. It clarifies the core concepts of beneficial ownership, the mechanisms for identifying beneficial owners and verifying their identities, and the distinction between the legal owner and the beneficial owner. It also explains direct and indirect ownership structures, ultimate effective control, and the risk-based approach.
SOCPA affirmed that the manual's issuance reflects its support for the pivotal role that accountants and auditors play in the national anti-money laundering and counter-terrorism financing ecosystem. Their responsibilities extend well beyond reviewing financial statements to encompass active contribution to detecting illicit activities and preventing the misuse of legal entities and legal arrangements.
The manual includes practical guidance and illustrative examples that help licensed practitioners understand complex ownership structures and identify beneficial owners in companies, associations, nonprofit foundations, and legal arrangements. It also sets out ongoing monitoring requirements to ensure that beneficial ownership information remains current and accurate.
This manual represents a significant professional reference that raises the level of regulatory compliance and awareness, reinforces the integrity of the financial and professional sector, and aligns with Saudi Arabia's international commitments and aspirations to advance transparency and business governance.
The manual is available by clicking
here.