SAMA says company accounts unaffected by corruption purge

The Saudi Arabian Monetary Authority (SAMA) has frozen the personal bank accounts of princes and officials accused in corruption cases this week, and not the bank accounts of their companies.

“Concerned individual accounts rather than their corporate businesses have been put in suspension until final court rulings,” SAMA governor Ahmed Abdulkarim Alkholifey said in a statement on Tuesday.

“Corporate businesses remain unaffected. It is business as usual for both banks and corporates,” the governor added, noting that there are no restrictions on money transfers through “proper banking channels.”

Reuters reported on Tuesday that Saudi banks have frozen more than 1,200 accounts belonging to individuals and companies as part of the anti-corruption purge, according to sources familiar with the matter.

The number continues to rise, the sources added.

Saudi Arabia on Saturday arrested several royal family members, officials, and businessmen as part of a sweeping crackdown against corruption.

The businessmen being held include billionaire Prince Alwaleed bin Talal, chairman of investment firm Kingdom Holding; Nasser bin Aqeel al-Tayyar, founder of Al Tayyar Travel Group Holding; and Amr al-Dabbagh, chairman of Red Sea International.

Those detained are facing charges of money laundering, bribery, extortion, and taking advantage of public office for personal gain, Reuters reported.

Since Sunday, SAMA has been expanding the list of accounts it is requiring lenders to freeze on an almost hourly basis, one regional banker said.