Anti-Financial Fraud and Breach of Trust System

1. Introduction:

The Financial Fraud and Breach of Trust Law aims to protect the economy and investors from unlawful conduct that undermines trust in financial transactions, while promoting integrity across the financial and social systems.

2. What is the Law?

This is a standalone regulation issued under Royal Decree No. (M/79), dated 10/09/1442H (April 30, 2021). It criminalizes fraudulent behavior and the illegal use of funds or assets.

3. Key Offenses Covered:

- Financial Fraud: Seizing others' property through deception, lies, or false promises.

- Breach of Trust: Misusing money or property entrusted to the offender, without right or with bad intent.

- Incitement, Conspiracy, or Aiding: Those who assist or conspire to commit the crime are also punishable.

- Attempt and Participation: Even if the crime is not completed, intent and initiation are punishable.

4. Means of Evidence:

Proof may include written and electronic documents, witness testimony, and reports from competent authorities.

5. Relevant Authorities:

- Public Prosecution: Responsible for investigation and prosecution.

- Police: Conduct preliminary investigation and enforcement.

- Criminal Court: Issues judgments and rulings.

6. Prescribed Penalties:

- Financial Fraud: Imprisonment for up to 7 years and/or a fine of up to SAR 5 million.

- Breach of Trust: Imprisonment for up to 5 years and/or a fine of up to SAR 3 million.

- Incitement or Assistance: Subject to the same or half the penalty imposed on the primary offender, depending on the facts.

- Confiscation: Includes tools and proceeds gained through the crime.

7. Legal and Social Consequences:

- Criminal record and legal prosecution.

- Confiscation of funds and related tools.

- Professional or organizational consequences (e.g., job loss or ban from financial activities).

- Publication of a summary of the judgment to inform the public.

8. Our Legal Services in Financial Fraud Cases:

We offer specialized legal services, including:

- Preventive legal consultation for financial activities.

- Defense representation before the Public Prosecution and competent courts.

- Filing appeals or seeking sentence reduction when applicable.

9. Legal Advice & Contact Invitation:

If you receive a notice or summons regarding a financial violation, do not hesitate to consult a lawyer. Early legal intervention can protect your rights and help avoid severe penalties or a criminal record.

📞 For consultations on financial fraud or breach of trust cases, contact us directly to schedule a meeting with a legal specialist.