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Saudi Arabia bans prepaid CASHU cards

The Kingdom is reportedly banning prepaid cards to prevent money laundering and terror financing

IT Business, Security services, Financial news

The Saudi Arabian Monetary Agency (SAMA) is claimed to have advised the Ministry of Commerce and Investment to ban the delivery of CASHU cards in Saudi Arabia.

Reported by the Saudi Gazette, SAMA states that the prepaid cards could be misused for money laundering and terror financing, despite being intended for safer online transactions.

Saudi Gazette quoted CASHU, who said: "Our payment platform is built on and encapsulates the most sophisticated, up-to-date fraud prevention and anti-money laundering systems reducing the risks associated with online payments for both buyers and sellers, and allowing for wider, safer and faster consumer participation in e-commerce."

SAMA reportedly took against after the Central Bank voiced concerns over not being able to monitor such transactions, and now any retailer defying the ban will face a penalty. However SAMA said that only banks in the Kingdom are allowed to issue prepaid cards in accordance with specific rules and regulations issued by the agency.

CASHU launched in 2002 with a mission to protect their customers from online fraud. The service enables its customers to create an account through which they buy credit for their cards. They can then pay for transactions online without having to provide and personal or financial information.