RIYADH, Aug 26: A new joint US-Saudi centre to probe terrorist financing is being set up here, reports indicate.

A US team was due in Riyadh to form part of the centre. It includes agents from the FBI and the Internal Revenue Service.

Last week, the Saudi cabinet endorsed the country’s first ever anti-money laundering law which stipulates stiff penalties against offenders. The 29-article law stipulates jail terms of up to 15 years and a fine of SR7 million ($1.86 million) for those who carry out money laundering through charities or organized groups. Financing terrorism or terror organizations is an act punishable under the legislative provision.

The country has also frozen the bank accounts of some of the organisations and individuals suspected of illegal dealings. It has also taken measures against other accounts submitted to it by the United States on suspicion of funding terrorism.

Only a couple of days ago it was revealed here that the account of Khaled ibn Salim Bin Mahfouz with the local Saudi American Bank has been closed down without giving him any reason. Bin Mahfooz is the former owner of the National Commercial Bank, one of the largest banks, in the country.