The fight against money laundering has a significant impact on the financial sector. Financial institutions are required to implement strict measures to combat money laundering, such as customer identification and monitoring financial transactions. This requires investments in information technology and staff training and can increase operational costs and legal risks for financial institutions.

In recent years, international efforts to combat money laundering and terrorist financing have converged, gaining increasing importance in addressing global issues that threaten not only security but also the stability, transparency, and efficiency of financial systems, thereby undermining economic prosperity.

Thus, the efforts of Bank Al-Salam Capital in combating money laundering are synchronized with international and local efforts to mitigate the impact of this phenomenon on banks, the national economy, and the global economy alike.

In accordance with the internal procedures of the bank and the requirements of the Central Bank of Yemen and foreign banks, a mechanism for combating money laundering and terrorist financing has been developed through the establishment of an independent unit that carries out its tasks in accordance with the regulations and procedures governing it, playing an active role in reducing the bank's use as a means to facilitate money laundering activities prohibited by local and international legislation.

Policies, procedures, and applications to combat money laundering and terrorist financing include:

• All documents related to banking operations must be retained for a minimum of five years after their completion.
• In addition to the periodic inspections carried out by the Central Bank of Yemen, Bank Al-Salam Capital undergoes external audits to ensure its compliance with anti-money laundering and terrorist financing regulations and laws.
• The bank does not establish any business relationships with banks that do not have a genuine material presence and are subject to judicial authority in those countries, such as shell banks.
• The bank has policies in place regarding relationships with politically exposed persons, their families, and close associates.
• Monitoring outgoing/incoming external transfers and taking necessary actions in coordination with relevant departments and branches.

Bank Al-Salam Capital's Compliance Statement:

Yemen, as a member of the Financial Action Task Force (FATF) Middle East and North Africa (MENA) Working Group, is committed to the recommendations of the FATF concerning anti-money laundering and terrorist financing.

This policy sets out the minimum standards that Bank Al-Salam Capital adheres to in the fight against money laundering and terrorist financing. In all areas of operation, Bank Al-Salam Capital complies with all requirements, laws, regulations, and supervisory instructions related to anti-money laundering and terrorist financing, based on best practices that meet all regulatory and legal requirements and protect the bank's reputation and resources.

The Compliance Management at Bank Al-Salam Capital is responsible for ensuring compliance with anti-money laundering and terrorist financing requirements and measures, as well as combating bribery, corruption, and fraud.

Bank Al-Salam Capital is legally obligated to regularly verify the identity of its customers and document it. Written policies are in place to meet the necessary requirements, including exercising due diligence on customers on an ongoing basis and maintaining records in accordance with the law for at least five years.