Financial Crime World

New Penalties for Financial Crimes: Saudi Arabia’s Crackdown on Fraud with Tougher Sentences

Date: May 1, 2021

Saudi Arabia is intensifying its efforts to combat financial crimes by imposing stricter penalties for fraudsters, instigators, and offenders. These new measures were approved by Cabinet Decision No. 534/1442 on April 30, 2021, with an expected implementation in September 2021.

Defining Fraud

According to the Saudi Monetary Authority (SAMA), fraud is any act that involves deception aimed at securing a financial gain, resulting in harm to the deceived party.

Penalties for Convicted Fraudsters

  • Prison: Seven years
  • Fine: SAR5 million (approximately US$1.3 million)

Article 1

Penalties for Inciters

  • Prison: Seven years
  • Fine: SAR5 million (approximately US$1.3 million)

If the fraud does not occur but the loss is suffered, offenders face up to half the same maximum penalties.

Article 3

Penalties for Attempted Fraudsters

  • Prison: Up to half the maximum penalties
  • Fine: Up to half the maximum penalties

Article 4

Penalties for Repeat Offenders and Organized Crime Groups

  • Prison: Up to 14 years
  • Fine: Up to SAR10 million (approximately US$2.6 million)

Article 5

Encouraging Reporting of Financial Crimes

To incentivize individuals to disclose financial crimes, the legislation grants exceptions to penalty application for those who report before any damage has occurred or whose reporting leads to the arrest of all other involved parties.

Article 8

This legislation aligns with Saudi Arabia’s goals of improving transparency, accountability, effective governance, and responsible enablement as part of Vision 2030. It also supports the strategic objectives of King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman Al Saud, aimed at creating a thriving economy and vibrant society by providing a conducive investment environment for locals and foreigners.

This article only serves as a general guide. It is essential to consult a legal expert when dealing with financial crime-related matters.

Originally published May 1, 2021

Contributor: [Your Name], Criminal Law Expert, Saudi Arabia.

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