Article 1 of the Saudi Anti-Financial Fraud and Breach of Trust Law
المادة 1 من نظام مكافحة الاحتيال المالي وخيانة الأمانة
The article punishes anyone who unlawfully takes another's money by any method of fraud, including lying, deception or misleading, with imprisonment and a fine or either of them.
Official text (Arabic)
This article has not been amended since the law was issued.
يعاقب بالسجن مدة لا تتجاوز (سبع) سنوات، وبغرامة مالية لا تزيد على (خمسة) ملايين ريال، أو بإحدى هاتين العقوبتين؛ كل من استولى على مال للغير دون وجه حق بارتكابه فعلاً (أو أكثر) ينطوي على استخدام أيٍّ من طرق الاحتيال، بما فيها الكذب، أو الخداع، أو الإيهام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 1 explained in plain English
This article defines the crime of financial fraud and its punishment. The crime arises when two things come together:
- Taking another's money without right, that is, taking money that the offender does not own and is not entitled to.
- That this is done by one or more acts involving the use of any method of fraud, including, as the text mentions: lying, deception, or misleading.
The phrase "including" means that these three methods are examples and not exhaustive, so any method of fraud by which another's money is taken falls within the article.
The punishment:
- Imprisonment for a period not exceeding 7 years.
- A fine not exceeding SAR 5 million.
- Or either of these two penalties, meaning the court may combine them or be content with one of them within these ceilings.
This article differs from Article 2, which punishes breach of trust, that is, taking money that was handed to a person in the first place by virtue of his work or on the basis of trust, partnership, deposit or the like, with imprisonment of up to 5 years and a fine of up to SAR 3 million, or either. The basic difference is that in fraud the money is taken from its owner by fraudulent means, while in breach of trust the money has been handed to the offender, who then takes it or disposes of it in bad faith.
Anyone who has experienced a situation he believes to be financial fraud is advised to consult a lawyer who specializes in criminal matters to assess his facts.
Practical example
A person led Ahmed to believe that he owned land in Jeddah that he wanted to sell, and sent him false photos and documents. Ahmed transferred SAR 200,000 to him as a deposit, and then the seller disappeared. This act rests on lying and misleading in order to take Ahmed's money without right, so it falls within the article, and is punishable by imprisonment of up to 7 years and a fine of up to SAR 5 million, or either.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 1 of the Saudi Anti-Financial Fraud and Breach of Trust Law
What is the punishment for financial fraud in Saudi Arabia?
Imprisonment for a period not exceeding 7 years, and a fine not exceeding SAR 5 million, or either of these two penalties.
Does the fraud have to be by lying only?
No. The text mentions lying, deception and misleading with the phrase "including," meaning they are examples, and the article covers any method of fraud by which another's money is taken without right.
What is the difference between financial fraud and breach of trust?
In fraud (Article 1) money is taken by fraudulent methods, while breach of trust (Article 2) concerns money handed to the person by virtue of his work or on the basis of trust, partnership or the like, which he then takes or disposes of in bad faith.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.