Alrajhi Bank ( Arabic : مصرف الراجحي ) (previously known as Alrajhi Banking and Investment Corporation ) is a Saudi Arabian bank and the world's largest Islamic bank by capital based on 2015 data.
41-766: The bank is a major investor in Saudi Arabia's business and is one of the largest joint stock companies in the Kingdom, with over SR 330.5 billion in AUM ($ 88 billion) and over 600 branches. Its head office is located in Riyadh , with six regional offices. Al Rajhi Bank also has branches in Kuwait and Jordan , and a subsidiary in Malaysia and Syria . Al Rajhi Bank has market capitalization of SR 302.80 billion. Alrajhi Bank
82-598: A claim that would entitle them to relief." Despite these allegations, on June 30, 2014, the U.S. Supreme Court issued an order leaving intact the dismissal with prejudice of all claims against the bank, as well as Sulaiman bin Abdulaziz Alrajhi (the bank's founder and former chairman) and Abdullah bin Suleiman Alrajhi (the bank's chairman and former CEO) among others, related to the terrorist attacks of September 11, 2001. The Supreme Court's order brought
123-836: A final close to claims asserted against the bank and its officers by victims and survivors of the 9/11 attacks. In March 2002, as part of Operation Green Quest , a covert U.S. Treasury attempt to disrupt terrorist financing in the United States, U.S. law enforcement agents entered and searched 14 interwoven business and nonprofits in Virginia that were associated with the SAAR Foundation , a private charitable foundation established in 1983 that Sulaiman bin Abdulaziz Alrajhi and two other Alrajhi family members were on its initial board of directors. A law enforcement affidavit stated that over 100 nonprofit and businesses in Virginia were
164-699: A group of Muslim scholars, businessmen, and scientists from the Middle East and Asia who moved to the U.S. in the 1980s. The network began with the incorporation of the SAAR Foundation, Inc., in Herndon, Virginia , as a 501(c)(3) non-profit in July 1983. The parent corporation dissolved in 2000 and was replaced by the Safa Trust, which was run by many of the same group of individuals. SAAR was named after
205-684: A group of banking and commercial operations which, in 1978, joined together under the umbrella of the Alrajhi Trading and Exchange Company. The company changed to a joint stock company in 1987, and after two years was rebranded as the Alrajhi Banking and Investment Corporation. In 2006, the bank rebranded itself as Alrajhi Bank. It is traded on the Saudi Arabian Stock Exchange ( Tadawul ), and around 75% of their shares are publicly owned. Alrajhi family members are
246-407: A letter from the bank's chief executive, and its own statement that the newspaper "did not intend to imply an allegation that Al Rajhi Bank supported terrorist activity, or had engaged in the financing of terrorism." Three of the hijackers in the 9/11 terrorist attack, including Abdulaziz al Omari , reportedly used banking services through Alrajhi Bank. Without violating applicable bank secrecy laws,
287-835: A numerous awards for its Middle East operations. Abdullah bin Sulaiman Alrajhi is the bank's Chairman of the Board of Directors and Stefano Bertamini is CEO. The board of directors has eleven directors, four are Alrajhi family members: Mohammed bin Abdullah Alrajhi, Sulaiman bin Saleh Alrajhi Abdullah bin Sulaiman Alrajhi Chairman of the Board of Directors, and Bader bin Mohammed Alrajhi. In September 2016, Alrajhi became
328-520: A part of the “Safa Group,” which were believed to be “engaged in the money laundering tactic of ‘layering’ to hide from law enforcement authorities the trail of its support for terrorists.” Subsequent 2006 federal grand jury subpoenas showed Alrajhi Bank was not directly related to the entities subject to the March 2002 search. The decision of the U.S. Court of Appeals for the Fourth Circuit cited by
369-522: A riyal, which was followed in 1963 by the introduction of the halala , one hundredth of a riyal. Some Saudi coins still bear denominations in qirsh, but it is no longer commonly used. In 1925, transitional copper coins for 1 ⁄ 4 and 1 ⁄ 2 qirsh (in some parts of the country, it is pronounced girsh) were minted in Mecca by Ibn Saud . They were followed, in 1926, by 1 ⁄ 4 , 1 ⁄ 2 and 1 qirsh cupro-nickel pieces carrying
410-460: Is the currency of Saudi Arabia . It is abbreviated as ر.س SAR, or SR (Saudi Arabian Riyal/Saudi Riyal) . It is subdivided into 100 halalas ( Arabic : هللة Halalah ). The currency is pegged to the US dollar at a constant rate of exchange . The riyal has been the currency of Saudi Arabia since the country came into being and was the currency of Hejaz before Saudi Arabia was created, one of
451-681: The Benevolence International Foundation , a Saudi-based nonprofit later designated a terrorist organization by the Treasury Department . The Golden Chain was discussed in the 9/11 Commission's report, in Federal court filings, and civil lawsuits, though the Alrajhi name was not specifically mentioned, while media reports as early as 2004 claim that the al Qaeda list included the Alrajhi name. In 2003,
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#1732771796039492-549: The G20 , attracted attention on release, as its reverse depicts the disputed territory of Jammu and Kashmir as a separate nation from India . While this design feature was met with criticism in most of India, it was received favourably by people in Kashmir and on social media, as it was viewed as a tacit form of approval of the region's separatism movement. 66 mm 68 mm 70 mm 72 mm 74 mm In June 1986,
533-612: The 19 hijackers before 9/11 ...." This, however, “was not unreasonable” in the Commission's view because, “[e]ven in hindsight, there is nothing ... to indicate that any SAR should have been filed or the hijackers otherwise reported to law enforcement.” In response to these allegations Alrajhi Bank continues to condemn terrorism and deny any part in financing terrorists. [REDACTED] Media related to Al Rajhi Bank (Saudi Arabia) at Wikimedia Commons Saudi riyal The Saudi riyal ( Arabic : ريال سعودي riyāl suʿūdiyy )
574-616: The 500 riyal followed in September 2007, and finally the 1 riyal note completed the series in December 2007. It is expected by the SAMA that the fourth (current) series will take approximately two years to phase out, although a complete removal of the current series require more than two years since the fourth series has been in circulation for well over 25 years. The fourth series which feature King Fahd 's picture will remain legal tender under
615-658: The Bureau of Immigration and Customs Enforcement testified in a 2003 affidavit that the most likely cause for the group's presence was "to conceal support for terrorism". Seventy percent of the contributions to SAAR charities came from within the SAAR network. Millions of dollars ended up in an offshore bank account in the Bahamas and the Isle of Man making them difficult to trace. Traced funds arrived at financial institutions designated by
656-604: The Indonesian insurgent group Kompak to fund weapons purchases and bomb-making activities.” Alrajhi Bank filed a defamation lawsuit in 2004 against the Wall Street Journal for a 2002 article that wrote about how Saudi Arabia was monitoring several accounts because of terrorist worries. The lawsuit settled in 2004 and the Wall Street Journal was not required to pay damages. The WSJ also published
697-522: The Monetary Agency began issuing regular banknotes for 1, 5, 10, 50 and 100 riyals on 15 June 1961. The Pilgrim Receipts were withdrawn on 1 February 1965. 500 Riyal notes were introduced in 1983. 20 and 200 riyal banknotes were issued in 2000 to commemorate the centenary of the founding of what became the Kingdom of Saudi Arabia. The 5th series of banknotes bearing the face of King Abdullah were issued in 2007. The 6th series of banknotes bearing
738-752: The National Transformation Programme (NTP). As of 2016, 70 percent of Alrajhi's assets and 55 to 60 percent of its revenue were generated from consumer banking, and the bank has an 18 percent share of the mortgage market in the Kingdom. Alrajhi Bank faced allegations in multiple U.S. lawsuits following the attacks on September 11, 2001 , including claims that Alrajhi Bank was used to complete financial transactions for people or nonprofit organizations with terrorist ties. Alrajhi-related nonprofit and business ventures located in Virginia were subjected to searches and seizures by U.S. law officials trying to disrupt terrorist financing activities in
779-616: The SAAR Foundation no longer has assets in its name in the U.S. As part of Operation Green Quest , a multiagency task force led by the U.S. Customs and U.S. Customs and Immigration Enforcement, SAAR was investigated in an investigation into suspected terror financing entities. Their mission was focused on closing down illicit financial systems and repairing vulnerable and legitimate systems that could be used to raise funds for terrorists. On March 20, 2002, federal agents raided 14 interlocking business entities in Herndon, Virginia, associated with
820-514: The Saudi Arabian Monetary Authority announced the first polymer note to be used in Saudi Arabia, being the 5 riyals note, to replace the current paper banknote, without any announcement on the other banknotes. The banknote was said to feature more environmentally friendly materials and additional security features, in addition to a much longer lifespan. The commemorative 20 riyal note, released in 2020 to commemorate
861-472: The Saudi Arabian monetary law. The new series have the latest and most advanced security system to prevent from counterfeiting and other similar activities. The newly renamed Saudi Arabian Monetary Authority unveiled a new family of banknotes with the portrait of King Salman on banknotes from 5 to 100 riyals, with a portrait of King Abdulaziz Al Saud on the 500 riyals banknote. On the 4 October 2020,
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#1732771796039902-515: The Staff Report in this regard indicated those matters involved counsel that has never represented either the bank or members of the Alrajhi family. The Alrajhi name was identified on a file that displayed a handwritten list of 20 people listed as alleged key financial backers of al Qaeda. The list, an image of a scanned document on a CD-ROM, was found during a search of the Bosnian offices of
943-539: The U.S. Central Intelligence Agency (CIA) released a classified document entitled, “Al Rajhi Bank: Conduit for Extremist Finance.” According to Glenn Simpson of the Wall Street Journal , the CIA report ended with: “Senior Al Rajhi family members have long supported Islamic extremists and probably know that terrorists use their bank.” The 2003 CIA report stated that in 2000, Alrajhi Bank couriers “delivered money to
984-442: The U.S. Treasury as financial conduits for terrorist groups like Al Taqwa Bank and Akida Bank Private, LTD. Other funds were traced to a group, WISE, linked to the organization Palestinian Islamic Jihad . In the years that followed the investigation, SAAR was fined "more than $ 500,000" for contempt of court for failing to turn over documents subpoenaed by the grand jury investigation. The fines have not been paid, however, because
1025-538: The United States in 2002. In January 2005, the U.S. District Court for the Southern District of New York dismissed all claims against the Bank. The Court held: "Plaintiffs do not offer facts to support their conclusions that Alrajhi Bank had to know that Defendant charities . . . were supporting . . . terrorism. . . . Even accepting all the allegations against Alrajhi Bank as true, Plaintiffs have failed to state
1066-411: The bank cannot confirm or deny this allegation. The National Commission on Terrorist Attacks Upon the United States found that the hijackers had accounts with and moved hundreds of thousands of dollars through many banks, including mainstream U.S. banks, but "[c]ontrary to persistent media reports, no financial institution filed a Suspicious Activity Report (SAR) in connection with any transaction of any of
1107-526: The bank's largest shareholders. In 2006, after nearly 50 years of operation solely within Saudi Arabia, the bank launched in Al Rajhi Bank Malaysia , signifying its first foray into international banking. Alrajhi Bank offers a variety of banking services such as deposits, loans, investment advice, securities trading, remittances, credit cards, and consumer financing. All services are offered according to Islamic requirements. The bank has won
1148-912: The face of King Salman bin Abdulaziz Al Saud were issued on 14/3/1438H (13/12/2016). On May 20, 2007, "the Saudi Arabian Monetary Agency, pursuant to article (4) of the Saudi Currency Law, issued under the Royal Decree No. (6) and dated 1/7/1379H." announced the fifth domination of the Saudi riyal that features King Abdullah 's picture on all notes except the 500 riyals, which features King Abdulaziz . The 100 and 50 riyal notes were released on May 21, 2007. The 10 and 5 riyal notes followed in June 2007, then
1189-517: The first bank in Saudi Arabia to partner with the Ministry of Housing, participating in the government's plans to increase home ownership by offering mortgages funded in part by the state. Traditionally, the bank had focused on consumer banking, but had begun diversifying its revenues with plans to adjust focus towards mid-corporate and small and medium-sized enterprise (SME) business as the Saudi government implemented its broader social reform agenda and
1230-610: The inflationary effects low interest rates and a lower value for the riyal. The riyal returned to its peg against the U.S. dollar in early December 2007. Saudi Arabia is a member of the Cooperation Council for the Arab States of the Gulf , which planned a monetary union with a single currency by 2010. However, all GCC countries operate with their own currency so far. SAAR Foundation The SAAR Foundation
1271-412: The key subject of a March 20, 2002, raid by federal agents, as a part of Operation Green Quest . The raid was carried out over suspicions by the U.S. Treasury Department that the group was laundering money for Al Qaeda or other terrorist groups. In 2003, they were accused of large scale money laundering for terrorist entities. The Foundation's overseas origins date to the 1970s. The origins began with
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1312-491: The patriarch of the wealthy Saudi Arabian al-Rajhi family, who are also the foundation's largest donors. Federal investigations allege that SAAR makes up a network of up to one hundred non-profit and for-profit organizations with known ties to radical Islamist groups. Many of these organizations shared the same address in Virginia, which led investigators to claim that many of the organizations were "phantom" entities engaged in reverse money-laundering. Special Agent David Kane of
1353-491: The previous issue. Cupro-nickel 1 ⁄ 4 , 1 ⁄ 2 and 1 qirsh were also issued from 1937. In 1946 ( AH 1365), many of the cupro-nickel coins were countermarked with the Arabic numerals 65 in what Krause and Mishler describe as "a move to break money changers' monopoly on small coins". Cupro-nickel 2 and 4 qirsh were introduced in 1957. In 1963, the halala was introduced, and bronze 1 halala coins were issued. That
1394-626: The primary currencies in the Mediterranean region during the Ottoman era . The Hejaz riyal was based on but not equivalent to the Ottoman 20 kuruş coin and was consequently divided into 20 qirsh. However, although the Hejaz riyal was the same weight as the Ottoman 20 kuruş, it was minted in .917 fineness , compared to .830 fineness for the Ottoman coin. Thus, because the first Saudi riyal had
1435-557: The riyal was officially pegged to the IMF 's special drawing rights (SDRs). In practice, it is fixed at 1 U.S. dollar = 3.75 riyals, which translates to approximately 1 riyal = 0.266667 dollar. This rate was made official on January 1, 2003. The riyal briefly rose to a 20-year high after the US Federal Reserve cut interest rates on September 18, 2007, and the SAMA chose not to follow suit, partially due to concerns about
1476-461: The same specifications as the Hejaz riyal and circulated alongside Ottoman coins, it came to be worth 22 Ottoman kuruş and was consequently subdivided into 22 ghirsh when coins denominated in qirsh were issued from 1925. The system remained even though the riyal was subsequently debased to a coin equivalent, in silver content, to the Indian rupee in 1935. In 1960, the system was changed to 20 qirsh to
1517-470: The title "King of Hejaz and Sultan of Nejd". In 1927, the royal title was changed to "King of Hejaz and Nejd and Dependencies" and coins were issued in denominations of 1 ⁄ 4 , 1 ⁄ 2 and 1 qirsh in cupro-nickel and 1 ⁄ 4 , 1 ⁄ 2 and 1 riyal in silver. In 1935, the first coins were issued in the name of Saudi Arabia. These were silver 1 ⁄ 4 , 1 ⁄ 2 and 1 riyal coins which were nearly 50% lighter than
1558-532: Was a flagship corporation representing charities, think tanks, and business entities. SAAR was named after its founder, Saudi patriarch Sulaiman Abdul Aziz Al Rajhi , a man close to the Saudi ruling family and on the Golden Chain , a list of early al-Qaeda supporters. SAAR is alternatively referred to as the Safa Group. The SAAR Foundation, which was dissolved in December 2000, achieved prominence as
1599-622: Was founded in 1957, and is one of the largest banks in Saudi Arabia, with over 9,600 employees and $ 88 billion in assets. The bank is headquartered in Riyadh, and has over 600 branches, primarily in Saudi Arabia, but also in Kuwait, and Jordan, with a subsidiary in Malaysia. The bank was started by four brothers, Saleh , Sulaiman , Mohamed, and, Abdullah of the Alrajhi family, one of the wealthiest families in Saudi Arabia. The bank initially began as
1640-527: Was issued in 2016. In 1953, the Saudi Arabian Monetary Agency (SAMA) began issuing Hajj Pilgrim Receipts for 10 riyals, with 1 and 5 riyals following in 1954 and 1956, respectively. These resembled banknotes and were initially intended for use by pilgrims who exchanged foreign currency for them. However, they became widely accepted in Saudi Arabia and largely replaced silver riyal coins in major financial transactions. Consequently,
1681-464: Was the only year they were struck. Cupro-nickel 5, 10, 25 and 50 halala followed in 1972, inscribed with their denomination in ghirsh or riyal (1, 2 qirsh, 1 ⁄ 4 , 1 ⁄ 2 riyal). In 1976, cupro-nickel 1 riyal coins were introduced, which are also inscribed with the denomination 100 halala. Bimetallic 1 riyal coins, also marked 100 halala, were issued in 1999. A new series of 1, 5, 10, 25, and 50 halalas and bimetallic 1 and 2 riyal coins