What Is the Penalty for Embezzlement Under Saudi Law?
Embezzlement is considered one of the serious financial crimes in Saudi Arabia, as it is directly linked to the misuse of trust or authority granted to employees. Therefore, Saudi law has established strict regulations to combat this crime and deter its perpetrators, reflecting the state’s commitment to protecting both private and public funds.
In this article, we will explain the penalty for embezzlement under Saudi law, the elements that must be present for the crime of embezzlement to be established, the methods of proving this crime, and the best lawyers you can turn to in such an important case.
What Is the Concept of Embezzlement?
Embezzlement is one form of theft. It refers to a person unlawfully taking money in a hidden manner without making it apparent to others. Embezzlement occurs when a person takes money without any legal right.
Embezzlement differs from fraud because it occurs without the embezzler using lies, deception, or fraudulent means. Fraud, on the other hand, occurs by persuading the victim to hand over their money through deception and trickery.
It also differs from breach of trust because the money is not deposited with the offender or placed under their control because of their work or as a matter of trust.
Elements of the Crime of Embezzlement Under Saudi Law
There are several legal elements that must be present in the crime of embezzlement under Saudi law to prove that the crime occurred. These elements are as follows:
The Material Element:
The material element of the crime of embezzlement relates to the actual act committed by the offender, where the offender must have unlawfully taken money or property owned by another person.
Read more about the Executive Regulations of the Financial Fraud Law and discover the details that regulate the mechanism for dealing with financial fraud step by step.
The Moral Element:
The moral element in the crime of embezzlement relates to the offender’s intention and the presence of criminal intent. The offender must have actually taken the money or property for illegal or personal purposes.
The offender’s intention in the crime of embezzlement is represented by the intent to personally appropriate the embezzled money, despite having access to it because of their position or job.
The Legal/Sharia Element:
The legal/Sharia element is the existence of a legal provision that punishes embezzlement. Under Saudi law, the Law for Combating Economic Crimes punishes the crime of embezzlement.
In addition, the Anti-Corruption Law criminalizes the appropriation of public funds or the property of others by a worker or public employee because of their job position or in the course of work.
The Objective Element:
The objective element refers to the property or money that was embezzled. The property or money must belong to another person, whether it is private or public money. This means the crime does not occur if the offender takes money that they personally own or that belongs to them.
The Personal Element:
The personal element relates to the person who commits the crime. In the crime of embezzlement, the offender should be someone who has a connection to the embezzled money because of their job or position.
Embezzlement is often committed by employees in private institutions or public employees who have the ability to access property or funds because of their work or role.
How to Prove the Crime of Embezzlement Under Saudi Law
There are several ways through which the elements of the crime of embezzlement can be proven. These include:
- It must be proven that the offender is a public employee and had possession of the stolen funds. This can be proven easily by requesting employee information from the entity where they work.
- Witness testimony confirming that the embezzlement occurred and that the employee stole the money in their possession.
- Extracting emails, surveillance camera footage from the location, or footage showing the offender while committing the act, provided that there is no alteration to it.
- The offender’s confession before the investigation authorities after being questioned and confronted with the available evidence.
- Submitting documents proving that the employee stole public funds belonging to the state or money belonging to another person that was in their possession.
- Proving the offender’s intent by showing that they knew the act they committed was considered a crime under Saudi criminal law.
Penalty for Embezzlement Under Saudi Law
The legislator regulated the penalty for embezzlement under Saudi law in order to protect public and private funds. Article (1) of the Anti-Financial Fraud and Breach of Trust Law states:
“Anyone who unlawfully takes another person’s money by committing one or more acts involving the use of any fraudulent method, including lying, deception, or illusion, shall be punished by imprisonment for a period not exceeding seven years and a fine not exceeding five million riyals, or by either of these two penalties.”
This article is considered the main provision used to punish perpetrators of embezzlement. It provides for a penalty of imprisonment for up to seven years and a large financial fine of up to SAR 7 million, or both.
Article (2) of the same law also states:
“Anyone who unlawfully takes money that was delivered to them by virtue of their work, or as a matter of trust, partnership, deposit, loan, lease, pledge, agency, or who disposes of it in bad faith or deliberately causes damage to it, other than public money, shall be punished by imprisonment for a period not exceeding five years and a fine not exceeding three million riyals, or by either of these two penalties.”
This article punishes the unlawful appropriation of money that was delivered to the accused by virtue of work, trust, or authorization such as partnership or deposit, and then disposed of in bad faith or deliberately damaged.
The penalty under this article is imprisonment for five years, a fine of SAR 3 million, or either of these two penalties.
Article (3) of the Anti-Financial Fraud and Breach of Trust Law states the following:
“Anyone who incites another person to commit any of the crimes stipulated in this Law, agrees with them, or assists them, shall be punished if the crime occurs as a result of such incitement, agreement, or assistance, with a penalty not exceeding the maximum penalty prescribed for that crime. If the original crime does not occur, the punishment shall not exceed half of the maximum penalty prescribed for it.”
This article shows that if a person incites or assists another person in committing an act considered embezzlement or unlawful appropriation, they are also punished even if they did not commit the crime themselves, because incitement and assistance are considered participation in the crime.
Article (4) of the law also states:
“Anyone who attempts to commit any of the crimes stipulated in this Law shall be punished with a penalty not exceeding half of the maximum penalty prescribed for the completed crime.”
This article shows that attempted embezzlement or unlawful appropriation is punishable by half of the maximum penalty prescribed for the completed crime.
Best Law Firm for Embezzlement Cases
Nawaf bin Awad Al-Harbi Law Firm is considered one of the leading firms providing legal services related to embezzlement cases. The firm is distinguished by its long and broad experience in various financial cases, making it the most suitable choice for those facing complex legal challenges.
The firm’s team is known for its ability to provide distinguished legal defense based on a deep understanding of litigation procedures and Saudi laws related to financial cases and other various legal matters.
Contact the best criminal cases lawyer now to handle an embezzlement case, prepare evidence, prove the elements of the crime, and begin legal procedures to protect your rights and hold the offender accountable under Saudi law.
Conclusion
The penalty for embezzlement under Saudi law was established to deter anyone who may be tempted to unlawfully take state funds or private funds belonging to others. This reflects the state’s commitment to protecting its funds and the funds of others, while establishing strict and deterrent penalties against anyone who may commit such crimes.
Frequently Asked Questions
How is embezzlement proven?
The crime of embezzlement can be proven by all means of proof available under Saudi law, whether under the Evidence Law or the Criminal Procedure Law.
These means include questioning and investigating the offender, the offender’s confession to committing the crime, providing digital or written evidence proving the commission of embezzlement, administering an oath, witness testimony, or the existence of factual or legal presumptions indicating that the offender committed the crime of embezzlement.
What is the difference between embezzlement and breach of trust?
The difference between them is that embezzlement occurs with respect to money placed in a person’s hands because of the nature of their work, such as being an employee in the private or public sector. Breach of trust, on the other hand, occurs when money is placed with another person as a deposit or trust, and that person takes the money for themselves.
How is reconciliation carried out in embezzlement cases in Saudi Arabia?
Reconciliation in embezzlement cases in Saudi Arabia is carried out based on an agreement between the offender and the affected party. It usually requires returning the embezzled money and paying additional compensation. Reconciliation may take place at any stage of trial or investigation, and it must be with the consent of both parties and the approval of the court.