By Abdullah Al‑Homaid, Deputy Governor for Financial Conduct, Saudi Central Bank (SAMA)
Over the past decade, digital technologies, rapid cross‑border flows and new business models and products have reshaped the global financial system. Transactions that once required days and multiple intermediaries now settle in seconds across continents. While this speed unlocks unprecedented growth and inclusion, it also creates new pathways for financial crime.
At the Saudi Central Bank (SAMA), we constantly ask ourselves, “How can we ensure that trust in the financial system is maintained?”—concurrently with: “How do we ensure that trust evolves and keeps pace with innovation?”
Financial integrity as a strategic foundation
Trust remains the foundation of every financial system. It underpins investment decisions, facilitates access to capital, supports consumer confidence and enables economic growth. Only with trust can innovation scale and markets flourish. For Saudi Arabia, a strong integrity regime is a cornerstone of Vision 2030. As the Kingdom diversifies its economy, expands private-sector participation and deepens global market integration, a resilient financial system will be a decisive competitive advantage at a time when maintaining the integrity of financial markets has never been more important.
A robust framework for combatting money laundering, terrorist financing and proliferation financing contributes directly to broader economic objectives. By protecting the financial system from abuse, strengthening market transparency and promoting accountability, financial integrity supports the stability and confidence upon which sustainable growth depends.
The relationship between integrity and economic development is mutually reinforcing. Strong safeguards enhance confidence in financial institutions, while confidence encourages investment, innovation and participation within the formal financial sector. In this way, financial integrity contributes not only to protecting the system but also to enabling its future growth.
A changing risk landscape
The financial system is becoming increasingly digital, interconnected and data-driven. This transformation is creating new opportunities for consumers and businesses, but it is also changing the nature of financial crime. Illicit actors are increasingly sophisticated, exploiting technological developments, cross-border networks and the speed of digital transactions to conceal and move funds; risks that once emerged over weeks or months can now materialise within hours.
In such an environment, static approaches to risk management are no longer sufficient. Effective supervision requires the ability to understand evolving threats, identify emerging vulnerabilities and respond proportionately to changing risk profiles. This shift has prompted regulators and industries alike to move beyond traditional compliance models towards frameworks that are more adaptive, data-informed and outcome-focused.
SAMA’s adaptive supervisory approach
As the financial landscape evolves, supervision must evolve alongside it. SAMA’s approach is founded on the principle that regulatory effectiveness is achieved not only through the volume of controls, but also through the ability to identify, assess and mitigate risk. This philosophy is reflected in a supervisory model that combines risk-based methodologies with enhanced data capabilities and continuous regulatory development. The objective is to maintain visibility across a rapidly changing financial ecosystem while ensuring that innovation can develop within an environment of trust and confidence.
SAMA’s approach recognises that regulation and innovation should not be viewed as competing priorities—rather, they are complementary drivers of a resilient financial sector.
SAMA’s approach recognises that regulation and innovation should not be viewed as competing priorities—rather, they are complementary drivers of a resilient financial sector. Effective supervision promotes confidence, and confidence creates the conditions under which innovation can thrive responsibly.
Innovation and safeguards: A necessary balance
The success of any financial ecosystem depends on its ability to balance innovation with appropriate safeguards. Innovation expands access to financial services, improves efficiency and creates new opportunities for economic activity. However, innovation that develops without adequate governance, risk management and consumer protection can undermine confidence and create vulnerabilities within the system.
For this reason, Saudi Arabia’s approach has focused on enabling responsible innovation. As reflected in the Kingdom’s FinTech Strategy, innovation is encouraged within a framework that emphasises resilience, accountability and effective risk management.
Whether through digital payments, open banking, artificial intelligence or new delivery channels, sustainable innovation relies on a foundation of trust, and this balance is increasingly important as emerging technologies reshape financial services. Consumers, investors and institutions need confidence that innovation is occurring within a secure and well-governed environment.
From compliance to effectiveness
Globally, there has been a notable evolution in how jurisdictions measure the success of financial-integrity frameworks, from technical regulatory compliance toward achieving and demonstrating effective outcomes. The critical question is no longer whether controls exist, but whether the controls contribute meaningfully to the identification, management and mitigation of risk.
This transition reflects a broader recognition that effective risk management must be embedded across an organisational culture, governance structures and day-to-day decision-making. Institutions that successfully manage risk do so not because compliance is treated as a standalone function, but because integrity is integrated throughout the business.
Concurrently, effective supervision increasingly relies on a combination of risk-based approaches, data-driven insights and outcome-oriented assessments. Together, these elements provide a more holistic understanding of emerging risks and therefore strengthen the resilience of the financial system as a whole.
Balancing transparency and stability
Transparency plays a critical role in promoting confidence, accountability and market discipline. However, transparency must also support the broader objective of financial stability. An effective integrity framework, therefore, requires more than disclosure alone. It depends on strong institutional capabilities, informed decision-making and meaningful engagement between regulators and industry participants.
Building resilience across the financial sector requires continued investments in supervisory capabilities, governance frameworks and professional expertise, as well as ongoing dialogue that enables institutions to understand and respond to evolving risks in a timely and proportionate manner.
This balanced approach helps safeguard financial stability while promoting confidence in the integrity and effectiveness of the regulatory framework.
This balanced approach helps safeguard financial stability while promoting confidence in the integrity and effectiveness of the regulatory framework.
Technology as an enabler
The increasing complexity of financial services has reinforced the importance of timely, accurate and actionable risk intelligence. Technology has become a defining feature of modern finance and an increasingly important tool in protecting the financial system’s integrity. Across the sector, advanced analytics, automation and enhanced data capabilities are improving the ability to identify patterns, detect anomalies and strengthen risk-management practices. These developments support a more informed understanding of financial activity and enable institutions to make faster and more effective decisions.
For supervisors, technology provides additional visibility into emerging risks and enhances the ability to monitor an increasingly complex financial environment. It also supports a more proactive understanding of risks, including concentration risks, and sector-wide vulnerabilities that may not be visible through traditional supervisory techniques alone. Alongside traditional supervisory activities, data-enabled tools contribute to risk assessments, thematic reviews and the identification of developing trends across the sector.
Importantly, technology is not a replacement for sound judgement. Nonetheless, it serves as a force multiplier, enabling more effective supervision, stronger risk management and more timely intervention when necessary.
Strengthening capacity-building and a culture of integrity
Financial integrity depends on the collective capabilities of institutions, regulators and the broader financial ecosystem—and, ultimately, on people as much as systems. No regulatory framework, regardless of its sophistication, can be fully effective without the skills, knowledge and institutional capabilities required for its implementation. As financial services continue to evolve, developing these capabilities across the sector becomes increasingly important. While technology and regulatory frameworks are important enablers, they cannot substitute for strong governance, professional expertise and a culture that places integrity at the centre of decision-making.
Building resilience requires investments in professional expertise, governance practices, analytical capabilities and technological understanding. It also requires fostering a culture in which integrity, accountability and ethical conduct are viewed not as regulatory obligations but as core organisational values that strengthen institutions, underpin public confidence and contribute to the financial system’s long-term stability. This includes strengthening governance frameworks, enhancing risk-management capabilities, developing data-analysis expertise and fostering greater understanding of the emerging risks associated with technological innovation, digital financial services and increasingly interconnected global markets.
Equally important is the continued investment in leadership capabilities. Boards and senior executives play a critical role in establishing risk culture and ensuring that integrity considerations are embedded within strategic decision-making. Effective governance is increasingly recognised as one of the most important defences against financial crime and conduct-related risks.
When institutions possess the necessary skills, systems and governance structures, with a cornerstone comprising a strong integrity culture, they are better positioned to adapt to emerging risks without compromising resilience, stability or public trust. For this reason, capacity building should not be viewed as a regulatory requirement but instead as a strategic investment in the financial sector’s long-term sustainability.
Contributing to global financial integrity and policy development
Financial crime transcends borders, and no single jurisdiction or authority can combat it alone. Illicit financial flows, sanctions-evasion schemes, fraud networks and emerging digital threats frequently span multiple jurisdictions, exploiting differences in legal frameworks, supervisory approaches and enforcement capabilities. Consequently, safeguarding financial integrity cannot be viewed solely through a domestic lens. Effective mitigation of financial crime requires collective action, coordinated supervision and a shared commitment to strengthening the global financial architecture.
Policymakers are confronting unprecedented transformations of and challenges to financial systems that did not exist a decade ago. Artificial intelligence, digital products and services, decentralised finance and complex cross-border payment ecosystems are challenging traditional supervisory assumptions and requiring fresh approaches to risk management and regulation. Saudi Arabia offers valuable insights, with the Kingdom’s financial sector navigating rapid digital transformation whilst simultaneously advancing ambitious economic-diversification objectives under Vision 2030. This combination of innovation, growth and regulatory modernisation provides a unique perspective that informs international policy dialogue.
Saudi Arabia’s role in policy formulation and shaping has also evolved through active participation in global standard-setting forums, such as the Financial Action Task Force (FATF), the Basel Committee on Banking Supervision (BCBS) and other international bodies. These contributions include financial-crime prevention, supervisory effectiveness, emerging risks and the future evolution of risk-based regulatory frameworks. Input is particularly relevant at the intersection of innovation and financial integrity, including digital payments, fintech (financial technology) development, governance frameworks and technology-enabled supervision.
Beyond policy development, international engagement enables the exchange of supervisory experience, emerging-risk intelligence and regulatory best practices. These collaborative efforts strengthen the collective ability of jurisdictions to anticipate and address vulnerabilities before they become systemic threats. Global engagement is no longer limited to responding to emerging challenges; it is shaping the future direction of international standards. As new technologies and business models continue to transform financial services, policymakers have an opportunity, and a responsibility, to ensure that global frameworks remain adaptable, proportionate and effective.
For Saudi Arabia, its globally connected and influential financial sector not only enhances domestic resilience but also supports the Kingdom’s ambition to be a leading financial centre, investment destination and contributor to economic development regionally and internationally.
Conclusion: Trust as a strategic advantage
The financial ecosystem will continue to evolve—that much SAMA can be sure of. And as it does, the central bank will continue to assess and strengthen risk‑based supervision with richer data sources, predictive analytics and other refined capabilities.
Saudi Arabia’s ability to combine robust regulatory safeguards; proportionate, outcome‑focused supervision; and responsible, technology‑driven innovation will position the Kingdom as a resilient, attractive hub for global capital and sustainable growth.
For SAMA, strengthening financial integrity whilst balancing transparency with financial stability remains a key priority. Through continuous enhancement of regulatory frameworks, investment in capacity building and alignment with international best practices, the Kingdom is fostering a financial system that is both resilient and forward-looking.
Abdullah S. Al-Homaid has served as Deputy Governor for Financial Conduct at the Saudi Central Bank (SAMA) since October 2025. Prior to his current role, he held several senior positions within Saudi Arabia’s financial regulatory sector, including Deputy CEO for Market Conduct at the Insurance Authority in 2025 and Deputy CEO for Supervision from 2023 to 2025. He previously served at SAMA as Director General of Insurance Control from 2021 to 2023 and Director of the Insurance Supervision Department from 2019 to 2021.
Mr. Al-Homaid brings approximately 20 years of experience across insurance, banking, risk management and policy development. He led the project to transfer insurance supervision from SAMA to the Insurance Authority and has represented the Kingdom at both national and international forums. He has also contributed to a wide range of strategic initiatives and committees supporting the development of the financial sector and public policy.