Article 2 of the Saudi Anti-Money Laundering Law
المادة 2 من نظام مكافحة غسل الأموال · الفصل الثاني: التجريم
The article lists the acts that make a person guilty of money laundering, including converting or possessing proceeds or hiding their source with knowledge, attempt and participation.
Official text (Arabic)
This article has not been amended since the law was issued.
يعد مرتكباً جريمة غسل الأموال كل من قام بأي من الأفعال الآتية:
1- تحويل أموال أو نقلها أو إجراء أي عملية بها، مع علمه بأنها من متحصّلات جريمة؛ لأجل إخفاء المصدر غير المشروع لتلك الأموال أو تمويهه، أو لأجل مساعدة أي شخص متورط في ارتكاب الجريمة الأصلية التي تحصّلت منها تلك الأموال للإفلات من عواقب ارتكابها.
2- اكتساب أموال أو حيازتها أو استخدامها، مع علمه بأنها من متحصلات جريمة أو مصدر غير مشروع.
3- إخفاء أو تمويه طبيعة أموال، أو مصدرها أو حركتها أو ملكيتها أو مكانها أو طريقة التصرف بها أو الحقوق المرتبطة بها، مع علمه بأنها من متحصلات جريمة.
4- الشروع في ارتكاب أي من الأفعال المنصوص عليها في الفقرات (1) و(2) و(3) من هذه المادة، أو الاشتراك في ارتكابها بطريق الاتفاق أو تأمين المساعدة أو التحريض أو تقديم المشورة أو التوجيه أو النصح أو التسهيل أو التواطؤ أو التستر أو التآمر.
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 2 explained in plain English
This article is the basis of criminalization in the law; it sets out the acts that make a person guilty of money laundering. What they have in common is knowledge: that the offender knows the funds are proceeds of a crime, meaning they arise from a predicate offense as defined in Article 1.
The criminalized acts take four forms:
- Converting, transferring or carrying out any transaction with funds known to be proceeds of a crime, provided it is done to conceal or disguise their unlawful source, or to help a person involved in the predicate offense escape its consequences.
- Acquiring, possessing or using funds knowing they are proceeds of a crime or of an unlawful source. The text does not require a purpose of concealment here.
- Concealing or disguising the nature, source, movement, ownership or location of the funds, the way they are disposed of, or the rights connected to them, knowing they are proceeds of a crime.
- Attempting any of the previous acts, or participating in them by agreement, assistance, incitement, advice, direction, counsel, facilitation, collusion, cover-up or conspiracy.
The meaning of the fourth paragraph is that the offense is not limited to the person who carries out the transaction personally, but extends to anyone who facilitates it, advises it or covers it up, as well as anyone who began carrying it out and did not complete it.
Article 3 completes this provision by providing that a legal person, such as a company, is considered to have committed the offense if any of these acts is committed in its name or on its behalf, without prejudice to the criminal liability of its officials and employees.
Anyone facing an accusation or suspicion under this article should consult a lawyer who specializes in criminal cases.
Practical example
A person asked Khaled, an employee in Riyadh, to receive sums in his account and then transfer them to other accounts for a commission, and told him expressly that the money came from fraud. If Khaled carries out the transfers to conceal the source of the money, his act falls under paragraph 1, and even his mere acceptance of the arrangement and assistance may fall under participation under paragraph 4.
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 2 of the Saudi Anti-Money Laundering Law
Is merely owning money from an unlawful source money laundering?
Paragraph 2 provides that acquiring, possessing or using funds is money laundering if the person knows they are proceeds of a crime or of an unlawful source.
Is someone who helped or advised, without carrying out the transaction personally, punished?
Yes. Paragraph 4 treats participation by assisting, inciting, advising, counseling, facilitating or covering up as a form of the offense.
Is attempting money laundering an offense?
Yes. Under paragraph 4, attempting any of the acts in paragraphs 1, 2 and 3 counts as committing the offense of money laundering.
More articles on The Money Laundering Offense
- Article 3
The article provides that a legal person is considered to have committed money laundering if it is committed in its name or on its behalf, while criminal liability of the related natural persons remains.
يُعد الشخص الاعتباري مرتكباً جريمة غسل الأموال إذا ارتكب باسمه أو لحسابه أي من الأفعال الواردة في المادة (الثانية) من النظام، وذلك مع عدم الإخلال بالمسؤولية الج
- Article 4
The article makes the money laundering offense independent of the predicate offense, and provides that intent, knowledge or purpose is established from the objective and factual circumstances of the case.
1- تعد جريمة غسل الأموال جريمة مستقلة عن الجريمة الأصلية، ولا تلزم إدانة الشخص بارتكاب الجريمة الأصلية من أجل إدانته بجريمة غسل الأموال أو من أجل اعتبار الأموال
- Article 31
The article punishes a legal person that commits money laundering with a fine up to SAR 50,000,000 and not less than twice the value of the funds, with the possible additional penalties of barring it from its activity, closing its offices or liquidating it.
1- مع عدم الإخلال بالمسؤولية الجنائية للشخص ذي الصفة الطبيعية، يعاقَب أي شخص ذي صفة اعتبارية يرتكب جريمة غسل الأموال بغرامة لا تزيد على خمسين مليون ريال سعودي و
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.