What Is Money Laundering and What Is Its Penalty Under Saudi Law?

Money laundering is considered one of the most serious economic crimes affecting the stability of economic and financial systems worldwide. It is also a crime characterized by concealment and complexity, as perpetrators use sophisticated methods to hide the illegal sources of funds and make them appear as though they came from legitimate and lawful sources.

Saudi authorities give great importance to combating this crime. Strict legislation and laws have been enacted to confront it firmly and impose severe penalties on those who commit it, as well as those who assist them.

In this article, we will explain what money laundering means, the elements on which this crime is based, and the penalties imposed by Saudi law on its perpetrators.

What Does Money Laundering Mean?

Money laundering refers to the process of converting funds resulting from criminal or illegal activities, such as corruption, human trafficking, drug trafficking, tax evasion, and others, into funds that appear to be legitimate by introducing them into the financial system.

The purpose of this process is to conceal the original source of these funds so that criminals can use them without exposing their illegal activities. Money laundering usually takes place through three main stages: placement, layering, and integration.

The Saudi Anti-Money Laundering Law clarified the meaning of money laundering in Article (2), which states:

“A person shall be deemed to have committed the crime of money laundering if they commit any of the following acts:

• Transferring or moving funds, or conducting any transaction with them, while knowing that they are proceeds of a crime, in order to conceal or disguise the illegal source of those funds, or to assist any person involved in committing the predicate offense from which those funds were obtained to evade the consequences of committing it.
• Acquiring, possessing, or using funds while knowing that they are proceeds of a crime or from an illegal source.
• Concealing or disguising the nature of funds, their source, movement, ownership, location, method of disposal, or the rights associated with them, while knowing that they are proceeds of a crime.
• Attempting to commit any of the acts stated in paragraphs (1), (2), and (3) of this Article, or participating in committing them by agreement, providing assistance, incitement, advice, guidance, counseling, facilitation, collusion, concealment, or conspiracy.”

Elements of the Crime of Money Laundering Under Saudi Law

The crime of money laundering under Saudi law consists of two elements, which are explained as follows:

The Material Element

The material element of the crime of money laundering consists of the act, the criminal result, and the causal link between them. These are explained as follows:

• The act: The act consists of all actions carried out by a person to disguise and conceal the illegal source of funds, or to assist in doing so.
• The criminal result: The criminal result is represented by achieving the disguise and concealment of the illegal source of funds, or helping the offender evade punishment.
• The causal link: The causal link exists when the criminal result occurs, represented by disguising or concealing the source of funds due to the direct actions of the perpetrator.

The Moral Element

The moral element consists of criminal intent and criminal intention, which are explained as follows:

• Criminal intent: Criminal intent is present when the offender’s will is directed toward achieving the criminal result, which is disguising and concealing the illegal source of funds, or helping the offender evade punishment.
• Criminal intention: Criminal intention is present once the offender knows that the acts they are carrying out constitute a crime punishable by law, yet still commits them.

Penalty for Money Laundering in Saudi Arabia

Saudi law has defined the meaning of money laundering and clarified the penalty for this crime. Article (26) of the Anti-Money Laundering Law states:

“Anyone who commits the crime of money laundering stipulated in Article 2 of the Law shall be punished by imprisonment for a period of not less than two years and not more than ten years, or by a fine not exceeding five million riyals, or by both penalties.”

This article clarifies the original penalty for the crime of money laundering, which is imprisonment for no less than two years and no more than ten years, or a fine not exceeding SAR 5 million, or both penalties together.

Article (27) of the Law clarifies the aggravated penalty for money laundering, stating the following:

“Anyone who commits the crime of money laundering stipulated in Article (2) of the Law shall be punished by imprisonment for a period of not less than three years and not more than fifteen years, or by a fine not exceeding seven million riyals, or by both penalties, if the crime is associated with any of the following:

• Committing it through an organized criminal group.
• Using violence or weapons.
• Its connection to a public position held by the offender, or committing it by exploiting authority or influence.
• Human trafficking.
• Exploiting a minor or anyone treated as such.
• Committing it through a correctional, charitable, or educational institution, or in a social service facility.
• The issuance of any previous local or foreign judgment convicting the offender.”

This article shows that there is an aggravated penalty for those who commit the crime of money laundering. The penalty may reach imprisonment for no less than three years and no more than fifteen years, or a fine not exceeding SAR 7 million, or both penalties together.

This applies if the crime is committed by an organized criminal group, involves the use of weapons or violence, the exploitation of a minor, or any of the other cases stated in the article.

This makes it clear that an offender who commits money laundering in such circumstances is not treated the same as someone who commits the crime in its simple form.

Thus, the article confirms the Saudi legal system’s commitment to confronting money laundering firmly, especially when it is associated with other crimes that increase its seriousness.

Trusted Legal Consultations in Money Laundering Cases

Due to the seriousness of money laundering and its widespread occurrence at present, Nawaf bin Awad Al-Harbi Law Firm stands out as one of the best legal firms dealing with these crimes professionally and accurately.

The firm’s team of lawyers has extensive experience with the laws and regulations related to combating money laundering crimes, as well as knowledge of how to prove this crime, identify the illegal source of funds, and punish the perpetrators who commit it.

Conclusion

Thus, we have explained what money laundering means, the elements of this crime, and the penalty imposed by Saudi law. This is because such a crime is extremely serious and has received significant attention from the Saudi legal system due to its danger to society and its threat to stability.

Frequently Asked Questions

How is the crime of money laundering proven?

The crime is proven through all means of proof allowed under the Criminal Procedure Law, including investigating offenders and obtaining their confession, digital evidence, and written evidence.

How long is the imprisonment sentence for money laundering?

The original penalty for money laundering under Article 26 of the Saudi Anti-Money Laundering Law is imprisonment for no less than two years and no more than ten years. The penalty is aggravated if an aggravating circumstance exists, reaching imprisonment for no less than three years and no more than fifteen years.

What is the material element of the crime of money laundering?

The material element of the crime of money laundering is represented by carrying out tangible procedures, such as commercial transactions aimed at concealing the true source of funds, or complex financial transfers.