Saudi Arabia sets SR50,000 threshold for precious metals customer verification

Saudi Arabia's Ministry of Commerce has instructed businesses trading in precious metals and gemstones to verify customer identities and conduct due diligence for cash purchases or sales valued at SR50,000 or more. The requirement applies to single transactions and to multiple transactions that appear to be related, according to a memo issued to the Federation of Saudi Chambers and reviewed by Okaz newspaper on October 6, 2026.

Customer identification requirements and documentation standards#

Traders must identify customers, verify their identities and keep relevant information and records as required by the Anti-Money Laundering Law. Valid national identification is required for Saudi citizens, a valid residency permit for residents, and a valid passport for non-residents. Establishments must display an awareness notice at all branches outlining the identity verification requirements for transactions involving precious metals and gemstones. The ministry stated that other legally approved documents and methods of identification must also be taken into account. The SR50,000 threshold applies whether the amount is reached in a single transaction or through multiple transactions that appear to be related.

Invoicing and reporting obligations remain separate from threshold#

The SR50,000 transaction threshold does not remove traders' separate obligations for invoicing and providing buyer and seller information under the Precious Metals and Gemstones Law and its executive regulations. The ministry emphasized that showing an identity document alone is not enough: traders must verify its authenticity and complete all required due diligence steps. Information and records must be maintained in accordance with the relevant regulations. The requirement is separate from any other legally mandated identity verification requirements. The ministry cautioned that the threshold does not exempt establishments from other compliance obligations.

Suspicious transaction protocols and lower-value scrutiny#

Traders must apply due diligence steps at any transaction value where money laundering or terrorist financing is suspected, or where the accuracy or completeness of customer information is in doubt. The ministry emphasized the obligation to report suspicious transactions in accordance with established procedures. The memo was issued by the Ministry of Commerce to the Federation of Saudi Chambers. The ministry stated that the measures apply to all businesses engaged in the trade of precious metals and gemstones operating in Saudi Arabia.

Record retention and authenticity verification framework#

The requirements form part of Saudi Arabia's compliance framework under the Anti-Money Laundering Law. Traders are required to retain customer information and records in accordance with the law's requirements. The awareness notice must be prominently displayed at all branches of establishments trading in these goods, outlining the identity verification requirements and the SR50,000 threshold for cash transactions. The ministry stated that merely presenting an identity document is insufficient and that its authenticity must be verified alongside all other due diligence measures required by the regulations.