Saudi Law

15 Years Jail & SR.7 million fine for money laundering in Saudi Arabia

Saudi Arabia is in full swing with its Saudi Vision 2030. The country doesn’t look the same anymore with the changes it is doing every passing day. Whether these are the changes on the ground or at the constitution level, Saudi Arabia is dedicated to successfully implementing vision 2030. The core target is to diversify their economy as the future of oil is getting risky.

They are trying to add tourism in their finances, and for that, they are shedding their ultra-conservative, hostile environment. They are also making severe changes in their constitution, passing new laws to establish a working, civil government that focuses and ensures the citizen’s safety with priority.

The Saudiziation plan got principal appreciation among locals. Recently, the authorities passed a new law on Money Laundering. What is Money Laundering? What is the code about? What will be the punishment? Read all about it in the article below.

The Anti-Money laundering law passed by the Saudi Arabia government

Saudi Arabia has introduced a new Anti-Money Laundering Law on Saturday according to which the penalty for money laundering will be between 3 to 15 years imprisonment or a fine of up to SR. 7 million or $1.87 million. This penalty may vary depending on the type of money laundering. Furthermore, if the offenders repeat this heinous act, the penalty will be combined.

What is Money Laundering according to the new law?

According to the new law, a money laundering crime is defined as,

Conducting any transaction involving property or proceeds with the knowledge that they are the result of criminal activity or originate from an illegitimate source to disguise, protect or help that source or any other person involved in the original crime through which the property or proceeds were obtained.

It is further described as,

Earning, keeping, or using any property or proceeds with the knowledge that they are the result of criminal activity or come from an illegal or illegitimate source, in addition to concealing or camouflaging the nature, source, movement, ownership, location, method of disposition, or associated rights of this property or proceeds with the knowledge that they are the result of criminal activity.

Further, any attempt to commit any of the previously mentioned acts, participating in any of the acts by agreement, providing assistance, incitement, counseling, guidance, advice, conspiring, conspiracy, or concealment, are all considered money-laundering crimes.

What are the different types when the penalty will be combined?

The penalty will be combined in 6 different cases. These are,

  1. If the accused was part of an organized gang.
  2. If he used violence during the crime.
  3. If the accused works in the public sector and exploited their job or power to commit the crime.
  4. If the crime including human trafficking.
  5. If there is any exploitation of a minor or a woman.
  6. If there is any use of a correctional, charitable, or educational facility.

Will there be only imprisonment and fee penalty for offenders?

No, depending on the offender’s citizenship, the penalty will vary. If it is a,

  • Saudi nationals, they will be imprisoned for money laundering along with a ban from traveling once released for the same length of time as their prison term.
  • Saudi expats, they will be deported after completing their sentence and will not be allowed to enter the Kingdom again.

It is essential to implement these laws equally to make people aware of after comes of any crime. It is a long way of discussion of how these laws will be carried out. Till then, share this in your circle and let us know what you feel about it?

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