Article 25 of the Saudi Anti-Money Laundering Law

This article gives the supervisory authority the power to intervene and impose penalties for violations.

To whom does it apply? To financial institutions, designated non-financial businesses and professions, and non-profit organizations, as well as their managers, board members and members of their executive or supervisory management.

When? On discovering a violation of the provisions of the law, the regulations or the related decisions or instructions, or when a violation is referred to it by the competent authority.

What are the penalties? The authority may impose one or more of the following:

1. A written warning.
2. An order to comply with specific instructions.
3. An order to submit regular reports on the measures to remedy the violation.
4. A fine not exceeding SAR 5,000,000 per violation.
5. Barring the violator from working in the sectors under its supervision for a period it specifies.
6. Restricting the powers of managers, board members or controlling owners, including appointing one or more temporary supervisors.
7. Suspending managers or board members or requesting their replacement.
8. Suspending, restricting or prohibiting the practice of the activity, profession or product.
9. Suspending, restricting, withdrawing or canceling the license.

The supervisory authority must notify the General Department of Financial Intelligence of any measure or penalty it takes.

The article opens with the phrase "without prejudice to any harsher penalty, and without prejudice to any measure provided for in another law", so these penalties do not affect any harsher penalty or any measure provided for in another law. It complements the supervisory powers in Article 24. Anyone against whom a penalty has been imposed would do well to consult a lawyer who specializes in banking and finance or in administrative cases.