Saudi Arabia’s Cabinet has approved significant amendments to its anti-money laundering law, introducing stricter penalties including travel bans for citizens and deportation for foreign nationals convicted of financial crimes. The updates aim to fortify the Kingdom’s financial integrity by expanding the government’s ability to confiscate illicit assets.
Quick Facts
- Saudi offenders face post-prison travel bans.
- Non-Saudi offenders will face deportation.
- Courts gain expanded asset confiscation authority.
Stricter Penalties for Offenders
Under the revised Article 28, Saudi nationals sentenced to prison for money laundering will now face an additional penalty: a ban from traveling abroad for a period equal to their prison term.
For non-Saudi offenders, the consequences are more definitive. Once their sentence is served, they will be deported from the Kingdom and barred from re-entry, with exceptions made only for Hajj or Umrah under specific regulations.
Expanding the Scope of Asset Confiscation
The amendments grant courts more extensive powers to seize assets linked to financial crimes. Article 33 now mandates the confiscation of laundered funds, their proceeds, and any related assets upon conviction.
If illicit funds have been mixed with legitimate assets, courts are authorized to seize an equivalent value from the offender’s legitimate property. This authority extends to any assets belonging to the offender that are disproportionate to their known legal income, shifting the burden of proof to the accused to establish a lawful origin.
The law now also allows for the confiscation of assets even if they are held by a third party, as long as a link to the crime is proven. However, an exception is made for assets acquired in good faith for fair value.
A New Committee to Oversee National Policy
A new article, 49 bis, establishes the Permanent Committee for Combating Money Laundering. This body is tasked with developing and updating national risk-based policies, assessing financial threats, and ensuring the Kingdom’s framework aligns with international standards.
The Governor of the Saudi Central Bank will be responsible for issuing the committee’s internal regulations, centralizing the oversight of the nation’s anti-money laundering strategy.
About The Permanent Committee for Combating Money Laundering
The Permanent Committee for Combating Money Laundering is a Saudi governmental body responsible for creating and maintaining the Kingdom’s national policies against financial crime. It assesses risks, including those from high-risk countries, and works to align national strategy with global anti-money laundering standards.
Source: Zawya
