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:

Al Salam Capital Islamic Microfinance Bank affirms its full commitment to all national laws and regulations governing the banking and finance sector in the Republic of Yemen, especially those related to combating money laundering and terrorist financing, such as Law No. (1) of 2010 and its amendments and executive regulations, decisions of the National Committee, and publications of the Central Bank of Yemen, including Circular No. (1) of 2012 and Circular No. (2) of 2012.
The Bank also adheres to relevant international standards, including the recommendations of the Financial Action Task Force (FATF), sanctions lists issued by the Office of Foreign Assets Control (OFAC), the European Union, and the United Nations, in addition to the principles of the Basel Committee on Banking Supervision.
The bank adopts a risk-based approach to customer engagement and banking operations, through the implementation of due diligence (CDD/KYC) procedures, the adoption of special controls for dealing with high-risk persons (PEPs), the reporting of suspicious transactions, and the addition of a ban on dealing with entities included on local and international sanctions lists.
The bank also periodically updates its databases to include any banned entities or individuals, thus helping to mitigate the risks associated with money laundering and terrorist financing. This is accomplished through a qualified staff with banking experience and accredited international certifications.