Saudi Arabia Cracks Down on Credit Card Fraud with New Anti-Financial Fraud Law

In a bid to combat financial crime, Saudi Arabia’s Cabinet has approved a new law aimed at preventing credit card fraud in the country. The law, which comes into effect in September, introduces stricter penalties for convicted fraudsters and aims to create an attractive environment for local and foreign investment.

Definition of Fraud

According to the Saudi Arabian Central Bank, a fraud is defined as “any act involving deceit to obtain a direct or indirect financial benefit by the perpetrator or by others with his help, causing a loss to the deceived party.” The new law builds on this definition and introduces significant provisions aimed at combating credit card fraud.

Penalties for Convicted Fraudsters

Convicted fraudsters face:

Up to seven years in jail
Fines of up to SAR 5 million (approximately USD 1.3 million)
Those who incite fraud can also be punished with similar maximum penalties
Those who attempt to commit fraud may receive up to half the maximum penalties

Repeat Offenders and Organized Financial Criminals

Repeat offenders and organized financial criminals will be subject to double the maximum penalties, including:

Jail terms of up to 14 years
Fines of up to SAR 10 million (approximately USD 2.6 million)

Exemptions from Penalties

The law also allows courts to grant exemptions from these penalties in certain circumstances, such as:

Where individuals report fraud before any loss is incurred
Where reporting leads to the arrest of all other parties involved

Objectives and Impact

The new law is seen as an important step towards achieving the objectives of Vision 2030, which aims to create a thriving economy and vibrant society. It is expected to deliver on this vision by creating an attractive environment for local and foreign investment and enhancing transparency and accountability in the financial sector.

With credit card fraud posing a significant threat to the country’s financial stability, the new law sends a clear message that fraudulent activities will not be tolerated in Saudi Arabia. The move is likely to boost confidence in the country’s banking system and encourage businesses and individuals to invest in the economy.