Financial information about Al-Mamlaka Company
Money laundering
Money laundering is the illegal process of concealing the source of funds generated by illegal activities (such as drug trafficking, corruption, or economic crimes) and converting them into funds that appear legitimate. This process takes place in three main stages:
Depositing
This is the stage where illegal funds are introduced into the financial system.
This stage involves converting cash into bank deposits or purchasing assets such as real estate and cars.
Camouflage
The goal of this stage is to make it difficult to trace the source of the funds.
This is done by transferring funds between multiple accounts, conducting fictitious business transactions, or investing in countries with strict banking laws.
Integration
The funds are returned to the formal economy to appear legitimate.
The funds are used in investment projects or to purchase legal assets.
It weakens the national economy by reducing the effectiveness of economic policies and increasing inflation.
It finances organized crimes, such as terrorism and human trafficking.
Threatens the stability of countries by manipulating markets and institutions.
Anti-Money Laundering:
- Legislation and laws: Establish laws that criminalize money laundering and impose strict penalties.
- Financial institutions: Implement procedures such as Know Your Customer (KYC) and monitor suspicious transactions.
- International cooperation: Exchange of information between countries to prosecute those involved.
Compliance
Compliance is the adherence to laws, regulations, standards, and policies in place in an organization or industry. Compliance aims to ensure that activities and business are conducted in a legal, ethical, and regulatory-compliant manner.
Types of compliance:
Legal compliance:
Compliance with national or international laws and regulations, such as taxes and labor laws.
Regulatory compliance:
Compliance with rules imposed by industry regulators, such as banks or insurance companies.
Internal compliance:
Compliance with the company’s internal policies and procedures.
Create written regulations and policies that outline compliance rules.
Train employees to understand and implement compliance policies.
Monitor compliance through monitoring and analysis systems.
Provide confidential channels for reporting violations.
Implement disciplinary measures against violators
Implement disciplinary measures against violators
- Banking: Enforcement of Anti-Money Laundering (AML) and Anti-Terrorist Financing (CFT) regulations.
- Healthcare: Compliance with privacy standards, such as Health Information Protection Acts (HIPAA).
- Environmental: Compliance with environmental laws, such as reducing emissions.
Financial Control
Financial control is the process of managing and reviewing financial resources to ensure that they are used effectively, legally, and in accordance with established objectives. It aims to promote transparency, reduce waste, and combat corruption by ensuring compliance with financial policies and laws.
Financial Control Objectives:
Ensuring economic efficiency:
Ensuring maximum utilization of available resources.
Enhancing transparency:
Detecting any suspicious or illegal financial activities.
Ensuring compliance:
Ensuring that institutions adhere to financial laws and regulations.
Maintaining financial stability:
Reducing financial risks and achieving balance in budgets.
Preparing periodic reports on expenses and revenues.
Internally review financial operations to ensure accuracy and compliance.
Auditing of accounts and financial statements by independent parties.
Identify and analyze financial risks and develop strategies to deal with them.
The importance of financial control:
- Combating corruption:
Detecting and stopping illegal financial activities. - Enhancing trust:
Building confidence between institutions and stakeholders (such as investors and citizens). - Improving financial performance:
Reducing costs and improving the efficiency of money management.