Competent Courts Order Permanent Closure of Businesses Involved in Money Laundering

In a major crackdown on money laundering and predicate offenses, several businesses across the kingdom have been ordered to shut down permanently by competent courts following convictions for these crimes.

Background

According to Article 33 of the law, confiscated funds, proceeds of crime, and instrumentalities were seized from businesses involved in money laundering and predicate offenses. The courts also issued orders to liquidate the businesses, effectively bringing their operations to a permanent close.

Temporary Closures Turned Permanent

In some cases, businesses had been ordered to shut down temporarily pending further investigations or legal proceedings. However, following convictions, these temporary closures have now become permanent.

Violation of the Law

The affected businesses were found to be in violation of the law, which prohibits the laundering of funds and other criminal activities. Under Article 36, confiscated funds will accrue to the Public Treasury, while any rights lawfully adjudicated in favor of third parties acting in good faith will remain unaffected.

International Cooperation

In a related development, competent authorities have been authorized to exchange information with foreign counterparts and provide mutual legal assistance in relation to money laundering and predicate offense investigations and prosecutions. This cooperation aims to disrupt criminal networks and bring perpetrators to justice.

Impact on Organized Crime

The permanent closure of these businesses is seen as a significant blow to organized crime syndicates operating in the kingdom. It sends a strong message that the authorities will not tolerate such illegal activities and will take decisive action to combat them.

Ministry of Justice Statement

In a statement, the Ministry of Justice emphasized its commitment to combating money laundering and predicate offenses, saying: “We will continue to work closely with international partners to share information and best practices to prevent these crimes from occurring in the first place.”

Consequences for Guilty Parties

The affected businesses have been ordered to cease operations immediately and return any confiscated funds or assets to the authorities. Those found guilty of money laundering and predicate offenses face severe penalties, including imprisonment and fines.

Impact on Economy and Financial Sector

This development is expected to have a significant impact on the kingdom’s economy and financial sector, as well as send a strong message to criminal networks operating in the region.

Conclusion

The permanent closure of these businesses marks a major victory in the fight against money laundering and predicate offenses. The authorities’ commitment to combating these crimes will continue to disrupt criminal networks and bring perpetrators to justice.