Article 31 of the Saudi Anti-Money Laundering Law
المادة 31 من نظام مكافحة غسل الأموال · الفصل السابع: العقوبات
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 ولا تقل عن ضعف قيمة الأموال محل الجريمة.
2- يجوز معاقبة الشخص ذي الصفة الاعتبارية بمنعه بصفة دائمة أو مؤقتة من القيام بالنشاط المرخص له به بصورة مباشرة أو غير مباشرة، أو بإغلاق مكاتبه التي اقترن استخدامها بارتكاب الجريمة بصفة دائمة أو مؤقتة، أو بتصفية أعماله.
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 31 explained in plain English
This article sets the penalty for a legal person, such as companies and establishments, if it commits the money laundering offense.
Paragraph 1: the mandatory fine. A legal person is punished with a fine that has two limits:
- Maximum: not exceeding SAR 50,000,000.
- Minimum: not less than twice the value of the funds that are the subject of the offense.
The paragraph opens with the phrase "without prejudice to the criminal liability of the natural person", so punishing the company does not excuse the responsible individuals.
Paragraph 2: optional additional penalties. The legal person may be punished with any of the following:
- Barring it, permanently or temporarily, from carrying on the activity it is licensed for, directly or indirectly.
- Closing its offices whose use was connected with the commission of the offense, permanently or temporarily.
- Liquidating its business.
The article does not state the conditions for a legal person committing the offense; these are set by Article 3, which treats it as having committed the offense if any of the acts in Article 2 is committed in its name or on its behalf.
This penalty differs from the supervisory authority's penalties for violating the law's requirements, because here the article concerns committing the money laundering offense itself. Companies and their officials may consult a lawyer who specializes in criminal and corporate cases when facing any accusation.
Practical example
An import company in Jeddah was convicted of a money laundering offense in which the value of the funds involved was SAR 10 million. Under this article the fine may not be less than SAR 20 million (twice the value) and may not exceed SAR 50 million, and its offices that were used in the offense may also be closed, or it may be barred from its activity or have its business liquidated, without preventing the punishment of its managers who were involved.
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 31 of the Saudi Anti-Money Laundering Law
What is the fine for a company that commits money laundering?
A fine not exceeding fifty million riyals and not less than twice the value of the funds that are the subject of the offense.
Can a company be closed or liquidated?
Yes. It may be barred permanently or temporarily from its licensed activity, its offices connected with the offense may be closed, or its business may be liquidated.
Is the company's manager punished if the company is punished?
The article provides that this is without prejudice to the criminal liability of the natural person, so the liability of individuals remains.
More articles on Penalty for Money Laundering
- Article 26
The article sets the basic penalty for money laundering: imprisonment of two to ten years, or a fine not exceeding SAR 5,000,000, or both.
يعاقب كل من يرتكب جريمة غسل الأموال المنصوص عليها في المادة (الثانية) من النظام؛ بالسجن مدة لا تقل عن سنتين ولا تتجاوز عشر سنوات, أو بغرامة لا تزيد على خمسة ملا
- Article 27
The article raises the money laundering penalty to imprisonment of three to fifteen years or a fine up to SAR 7,000,000 or both, if the offense is accompanied by one of seven circumstances.
يعاقب كل من يرتكب جريمة غسل الأموال -المنصوص عليها في المادة (الثانية) من النظام- بالسجن مدة لا تقل عن ثلاث سنوات ولا تتجاوز خمس عشرة سنة، أو بغرامة لا تزيد على
- Article 28Amended by M/223
The article bars a Saudi sentenced to imprisonment for money laundering from traveling for a period equal to the sentence, and requires deporting a convicted non-Saudi after the sentence and barring entry except for Hajj or Umrah.
1- يمنع السعودي المحكوم عليه بعقوبة السجن في جريمة غسل أموال من السفر خارج المملكة مدة مماثلة لمدة السجن المحكوم عليه بها. 2- يُبعد غير السعودي المحكوم عليه في
- Article 32
The article allows a money laundering conviction to include publishing a summary of the judgment at the convicted person's expense in a local newspaper or other suitable means, after the judgment becomes final.
يجوز تضمين الحكم الصادر بالعقوبة النص على نشر ملخصه على نفقة المحكوم عليه في صحيفة محلية تصدر في مقر إقامته، فإن لم تكن في مقره صحيفة ففي أقرب منطقة له، أو نشره
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.