Saudi Arabia says only private accounts suspended in crackdown

DUBAI/RIYADH — Saudi Arabia said it has only frozen the bank accounts of individuals and not those of the companies they own or manage, as the kingdom seeks to ease tension among global investors over a crackdown that’s seen princes and billionaires arrested.

The action, described by Saudi authorities as an anti-corruption drive, applies only to individual accounts held by “persons of interest,” and not to corporate ones, Saudi Arabian Monetary Authority Governor Ahmed Abdulkarim Alkholifey said in a statement on Tuesday. “It is business as usual for both banks and corporates,” he said, adding that there are no restrictions on money transfers “through proper banking channels.”

The arrests, which included Prince Alwaleed bin Talal, one of the world’s richest men and a shareholder in such global companies as Citigroup, Inc. and Apple, Inc., have reverberated across board rooms and financial institutions in the biggest Arab economy and globally.

Earlier, three people with knowledge of the matter said the central bank ordered banks in the kingdom to freeze the accounts of dozens of individuals who aren’t under arrest. Already, as much as $33 billion in personal wealth belonging to the richest detainees has been put at risk.

More may be on the way: The regulator sent a list of hundreds of names to lenders, telling them to freeze any accounts linked to them, two of the people said. They asked not to be identified because the information is private. The Saudi attorney general said in a statement released Monday that weekend arrests of princes, businessmen and off icials were only “phase one” of the anti-corruption drive. — Bloomberg