By the grace of Almighty God
We, Salman bin Abdulaziz Al Saud, King of the Kingdom of Saudi Arabia
Based on Article (Seventy) of the Basic Law of Governance, issued by Royal Order No. (A/90) dated 27/8/1412 AH.
Based on Article (Twenty) of the Law of the Council of Ministers, issued by Royal Order No. (A/13) dated 3/3/1414 AH.
Based on Article (Eighteen) of the Law of the Shura Council, issued by Royal Order No. (A/91) dated 27/8/1412 AH.
After reviewing the Shura Council decisions No. (44/174) dated 12/10/1439 AH, No. (37/185) dated 27/8/1441 AH, and No. (4/23) dated 15/4/1442 AH.
After reviewing the Council of Ministers decision No. (534) dated 8/9/1442 AH.
We have decreed the following:
First: Approval of the Law of Combating Financial Fraud and Breach of Trust, in the attached text.
Second: The law referred to in item (First) of this decree shall not apply to acts of fraud stipulated in the Capital Market Law, issued by Royal Decree No. (M/30) dated 2/6/1424 AH, to which the provisions of that law apply.
Third: Amendment of Article (Ninety) of the Enforcement Law, issued by Royal Decree No. (M/53) dated 13/8/1433 AH, to read as follows: "Any debtor proven to have squandered his funds, if the funds are substantial, shall be punished by imprisonment for a period not exceeding fifteen years, even if insolvency is proven. This shall be considered a major crime warranting detention."
Fourth: It is incumbent upon His Highness the Deputy Prime Minister, the Ministers, and the heads of the relevant independent authorities - each within his jurisdiction - to implement this decree.
Salman bin Abdulaziz Al Saud
The Council of Ministers
After reviewing the correspondence received from the Royal Court No. 22921 dated 25/4/1442 AH, regarding the draft Law of Combating Financial Fraud and Breach of Trust.
After reviewing the aforementioned draft law.
After reviewing the Enforcement Law, issued by Royal Decree No. (M/53) dated 13/8/1433 AH, and its amendments.
After reviewing the Capital Market Law, issued by Royal Decree No. (M/30) dated 2/6/1424 AH, and its amendments.
After reviewing the minutes No. (741) dated 27/4/1440 AH, No. (461) dated 8/4/1441 AH, No. (857) dated 25/6/1441 AH, and memoranda No. (1000) dated 16/11/1441 AH, No. (161) dated 28/1/1442 AH, No. (877) dated 28/5/1442 AH, prepared by the Bureau of Experts at the Council of Ministers.
After reviewing the two recommendations prepared by the Council of Economic and Development Affairs No. (3-41/23/D) dated 15/7/1441 AH, and No. (30-41/43/D) dated 9/12/1441 AH.
After reviewing the telegram from the Secretariat of the Council of Political and Security Affairs No. 16524 dated 19/8/1442 AH. And after considering the Shura Council decisions No. (44/174) dated 12/10/1439 AH, No. (37/185) dated 27/8/1441 AH, and No. (4/23) dated 15/4/1442 AH.
After reviewing the recommendation of the General Committee of the Council of Ministers No. (5917) dated 26/8/1442 AH.
It is decided as follows:
First: Approval of the Law of Combating Financial Fraud and Breach of Trust, in the attached text.
Second: The law referred to in item (First) of this decision shall not apply to acts of fraud stipulated in the Capital Market Law, issued by Royal Decree No. (M/30) dated 2/6/1424 AH, to which the provisions of that law apply.
Third: Amendment of Article (Ninety) of the Enforcement Law, issued by Royal Decree No. (M/53) dated 13/8/1433 AH, to read as follows: "Any debtor proven to have squandered his funds, if the funds are substantial, shall be punished by imprisonment for a period not exceeding fifteen years, even if insolvency is proven. This shall be considered a major crime warranting detention."
A draft Royal Decree has been prepared accordingly, its text attached hereto.
Law of Combating Financial Fraud and Breach of Trust
Article 1
Any person who fraudulently appropriates the property of others by misleading them or by committing any act involving misrepresentation or deception shall be subject to imprisonment for a period not exceeding seven years and a fine not exceeding 5,000,000 riyals, or either penalty.
Article 2
Any person who unlawfully appropriates funds or property, other than public funds and property, delivered to him by virtue of employment or partnership; as a trust, deposit, loan, lease, or lien; or in his capacity as agent, or disposes of in bad faith or intentionally causes damage thereto shall be subject to imprisonment for a period not exceeding five years and a fine not exceeding 3,000,000 riyals, or to either penalty.
Article 3
Any person who incites, conspires with, or aids another person in the commission of any of the crimes stipulated in this Law shall, if the crime is committed as a result of such incitement, conspiracy, or aid, be punished by a penalty not exceeding the maximum prescribed penalty, and by half the maximum penalty if the original crime is not committed.
Article 4
Any person who attempts to commit any of the crimes stipulated in this Law shall be punished by a penalty not exceeding half of the maximum penalty prescribed for a completed crime.
Article 5
The penalties imposed shall not be less than half the maximum penalty prescribed in this Law nor more than double such penalty if the crime committed is:
1. an organized crime;
or 2. repeated.
Article 6
Without prejudice to the right of bona fide third parties, the tools and equipment used in the commission of any of the crimes stipulated in this Law as well as their proceeds shall be confiscated pursuant to a judicial ruling.
Article 7
The judgment imposing penalty may include a provision to publish the summary thereof at the expense of the person against whom the judgment is rendered in one or more newspapers published in his area of residence, or, if none is available, in a newspaper published in the nearest area, or through any other appropriate medium, depending on the type, gravity, and impact of the crime, provided that the publication is made after the judgment becomes final.
Article 8
The competent court may exempt from the penalties stipulated in this Law any perpetrator who reports a crime to the competent authority prior to its knowledge of the crime and prior to the occurrence of damage. If the reporting is made after the court’s knowledge of the crime, the exemption shall be granted only if the reporting leads to the arrest of the remaining perpetrators.
Article 9
If any of the acts referred to in Articles 1 and 2 of this Law constitutes a crime under other laws, the harsher penalty shall be imposed.