The Saudi Ministry of Commerce has issued a directive requiring businesses dealing in precious metals and gemstones to verify the identities of customers for cash transactions reaching or exceeding SR50,000. This measure applies whether the amount is involved in a single transaction or through multiple related transactions that collectively meet the threshold.

The ministry highlighted the importance of conducting thorough due diligence to ensure compliance with regulatory standards. This effort aims to enhance transparency and prevent illicit activities in the trade of high-value precious metals and gemstones across the kingdom.

The requirement affects all traders operating within Saudi Arabia’s precious metals market and mandates that they implement procedures to confirm buyer information before completing applicable transactions. The ministry did not specify exact mechanisms but underscored the necessity of adherence to identity verification protocols.

This move comes as part of broader regulatory efforts by Saudi authorities to strengthen financial controls and combat potential money laundering risks in key commercial sectors. Traders are expected to comply promptly to avoid facing penalties or enforcement actions under the country’s commerce and anti-money laundering laws.