Swiss banks step up SARS on Saudi clients

Following reports about

• the arrest last month of more than 200 people, including some of Saudi Arabia’s richest businessmen and princes. They were detained at the Ritz-Carlton hotel in Riyadh as part of an anti-graft operation launched by Crown Prince Mohammed bin Salman, the kingdom’s powerful heir apparent. The crown prince is seeking to recover at least $100bn through the crackdown in “systematic corruption and embezzlement” that took place over several decades.

• the Saudi regulator has asked local and foreign banks to disclose if they have credit facilities and safety deposit boxes in the names of those arrested, including billionaire Prince Alwaleed bin Talal, the media-savvy investor with stakes in companies including Citigroup and Twitter.

• Prince Mohammed had brought in western investigators to work alongside finance ministry officials as they parse documents to analyse the extent of alleged corruption and prospective penalties. Foreign bankers have also been brought in for questioning

News reports and their sources have stated

• Switzerland’s banks have begun reporting suspicious account activity among some of their Saudi Arabian clients to the Swiss Money Laundering Reporting Office, part of the federal police service, according to

• Lawyers acting for the banks have submitted information over the past week and expect several dozen submissions to be made in total. The exercise reflects the banks’ nervousness about being found in breach of rules governing money laundering and corruption.

While Swiss banks strive to protect client confidentiality, they are obliged to report suspect transactions although as at 3rd December it has been reported There has been no action by Swiss authorities, such as searches or freezing accounts. Although it has been reported that Swiss bankers have begun to prepare cash transfers on behalf of clients, as princes and business people seek to settle allegations against them.