Financial Crime World

Saudi Arabia Cracks Down on Identity Theft and Financial Crime

Tougher Penalties Aimed at Enhancing Financial Security

Riyadh, Saudi Arabia - In a significant move to combat financial crime, the Saudi Arabian government has approved a new law that introduces stricter penalties for individuals convicted of identity theft and financial fraud. The law, set to come into effect in September 2021, marks an important step towards creating a more secure financial environment.

Key Provisions of the New Law

  • Increased Penalties: Individuals convicted of financial crimes can face jail terms of up to seven years and fines of up to SAR5 million (approximately US$1.3 million).
  • Repeat Offenders and Organized Crime Groups: Repeat offenders and organized crime groups can face up to double the maximum penalties, including jail terms of up to 14 years and fines of up to SAR10 million (approximately US$2.6 million).
  • Attempted Crimes: Individuals who attempt to commit a financial crime can face up to half the maximum penalties.
  • Reporting Crimes: Individuals who come forward and report a crime before any loss is suffered, or where reporting leads to the arrest of all other parties involved, may be exempt from penalties.

Benefits of the New Law

The introduction of this new law demonstrates the government’s commitment to creating an attractive environment for local and foreign investment, while also protecting the rights of citizens and promoting transparency and accountability. The law is expected to help deliver the strategic objectives of His Majesty King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman Al Saud for a “thriving economy” and a “vibrant society”.

Vision 2030

The new law aligns with the principles of Vision 2030, which aims to create a more transparent and accountable government, effective governance, and responsible enablement. The introduction of this law is a significant step towards achieving these goals.

Conclusion

The introduction of the new law marks an important milestone in the fight against financial crime in Saudi Arabia. With tougher penalties and increased transparency, individuals are less likely to engage in financial crimes, creating a safer environment for citizens and investors alike.