Money Laundering Crimes pose a significant threat to the integrity of financial systems and the stability of economies. Under the anti money laundering law Saudi Arabia, these offenses are clearly defined and criminalized to prevent the concealment of illicit funds.
Understanding the legal definitions, elements, and stages of Money Laundering Crimes is essential for individuals and organizations to recognize the seriousness of these crimes, the potential penalties under Saudi law, and the importance of compliance with national and international standards.
المحتويات
Money Laundering Crimes
The Anti-Money Laundering Law defines the acts that constitute the crime of money laundering in Article 2, as follows:
- Transferring or moving money, or carrying out any financial transaction, knowing that the funds are derived from a crime, with the intent to conceal or disguise their lawful source, or to assist any person involved in the underlying crime to evade liability for it.
- Acquiring, possessing, or using money, knowing that it has been derived from a crime or any unlawful source.
- Concealing the nature, source, ownership, movement, location, or methods of disposal of funds, or dealing with rights associated with them, knowing that these funds constitute proceeds of a crime.
- Attempting to commit any of the above acts, assisting, participating, inciting, advising, facilitating, conspiring, or covering up such acts.
A legal person is also criminally liable if it commits, on its own behalf or in its name, any of the acts described above, without prejudice to the liability of board members, owners, employees, auditors, or any natural person acting on behalf of or for the account of the legal person.
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Money Laundering Meaning
Money laundering offenses are criminal acts through which illegally obtained funds are given a false appearance of legitimacy. These funds often originate from unlawful activities such as drug trafficking, corruption, tax evasion, human trafficking, and similar offenses.
The primary objective of money laundering crimes is to conceal the true and illegal source of the funds so they appear to be proceeds of lawful activities. This allows offenders to use the money freely without raising suspicion or being exposed to legal accountability.
In practice, money laundering crimes are typically carried out through three main stages designed to disguise the origin of the funds and complicate their traceability:
- Placement: The introduction of illegal funds into the financial system.
- Layering: Conducting complex financial transactions to separate the funds from their criminal source and obscure their trail.
- Integration: Reintroducing the laundered funds into the economy in a way that appears legitimate and lawful.
Under international standards and national regulations, money laundering crimes are treated as serious economic offenses and are subject to strict legal penalties to protect financial systems and economic stability.
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Elements of Money Laundering Crimes under the Saudi Legal System
Every crime consists of essential elements that must be present, namely:
- Legal Element (Legislation): This refers to the legal texts that criminalize the acts. In the case of money laundering crimes, it concerns the unlawful funds that form the subject of the offense, as specified in the Anti-Money Laundering Law in the Kingdom of Saudi Arabia, provided as examples and not exhaustively.
- Material Element: This represents the criminal act committed by the offender in accordance with the criminalized legal provision. It includes any activity aimed at concealing or disguising funds derived from a crime, such as transferring, depositing, withdrawing, exchanging, lending, or any other act intended to obscure the origin of illicit funds.
The material element also includes participation in the crime through assistance, agreement, incitement, advice, facilitation, collusion, or cooperation with the perpetrators of the criminal acts. - Moral Element: According to Saudi law, this includes two main aspects:
- Knowledge: Awareness by the offender that the funds involved are derived from unlawful activities or constitute proceeds of a crime. This is determined from the circumstances and context of the crime rather than the text of the law itself.
- Intention (Will): Committing the acts deliberately and with full awareness of their legal consequences.
Given the complexity and sensitivity of money laundering cases in court, it is highly recommended to engage a lawyer specialized in money laundering cases to handle such matters, provide criminal legal advice, and ensure that clients navigate these cases in a legally sound and safe manner.
Penalties for Money Laundering Crimes under the Saudi Legal System
The Anti-Money Laundering Law in the Kingdom of Saudi Arabia establishes strict penalties for anyone who commits Money Laundering Crimes in their complete legal form, as defined by the acts listed in Article 2 of the Law. The applicable penalties vary depending on the seriousness of the offense and the surrounding circumstances, reflecting the Kingdom’s firm stance against such crimes.
- Basic Penalty (Article 26):
Any person who commits any of the acts constituting Money Laundering Crimes under Article 2 of the Law shall be punished by imprisonment for a period ranging from two to ten years, and/or a financial fine of up to SAR 5 million, at the discretion of the competent court. - Aggravated Penalty (Article 27):
Where Money Laundering Crimes are committed under aggravating circumstances, such as participation in organized criminal groups, use of violence or weapons, abuse of public office, exploitation of minors, involvement of charitable or public institutions, or prior criminal convictions—the penalty shall be imprisonment for a period ranging from three to fifteen years, and/or a financial fine of up to SAR 7 million. - Mitigation of Penalty (Article 29):
The court may reduce the penalties prescribed under Article 26 if the offender voluntarily provides the competent authorities with decisive information related to Money Laundering Crimes, after the authorities become aware of the offense, provided such information could not have been obtained by other means and contributes to preventing the crime, identifying other perpetrators, or seizing illicit proceeds.
Contact Information for a Leading Money Laundering Crimes Lawyer
If you are looking for a top lawyer specializing in money laundering crimes in the Kingdom of Saudi Arabia, you can reach out at either +966 550600204 or +966 551020060.
This lawyer is recognized as one of the foremost experts in handling money laundering crimes, possessing extensive and exceptional experience in managing the most complex and challenging legal cases. He provides optimal legal solutions to protect clients’ rights and achieve the best possible outcomes before the courts and relevant authorities.
Conclusion:
Money Laundering Crimes are strictly addressed under the anti money laundering law Saudi Arabia, reflecting the Kingdom’s firm commitment to safeguarding financial integrity and combating illicit financial activity. For professional assistance and strategic legal solutions in handling Money Laundering Crimes, Etqan Law Firm stands out as a trusted advisor for individuals and organizations across Saudi Arabia.
FAQ:
What crimes are associated with money laundering?
Money laundering is often linked to crimes such as drug trafficking, corruption, tax evasion, fraud, human trafficking, and organized crime.
What is the penalty for money laundering in Saudi Arabia?
Penalties include imprisonment from 2 to 15 years, fines up to SAR 7 million, asset confiscation, and possible deportation for non-Saudis.
What are the five basic money laundering offences?
The main offences are: placement, layering, integration, concealing illicit funds, and assisting or participating in money laundering.
What is the biggest money laundering case?
One of the largest cases involved the 1MDB scandal, a global fraud and money laundering scheme linked to billions of dollars embezzled from Malaysia’s sovereign wealth fund.
The Etqan Al Mutamayza Law Firm is ready to provide the essential support you need. You can reach their team at the following mobile numbers: +966 550600204, +966 551020060.
Additionally, feel free to visit our branches located at:
- Jeddah: Al-Aziziyah District, Mohammed bin Abdulaziz Street (Tahlia)
- Riyadh: King Abdulaziz Street, across from the Kingdom Tower
