Article 36 of the Saudi Anti-Money Laundering Law
المادة 36 من نظام مكافحة غسل الأموال · الفصل الثامن: المصادرة
The article provides that confiscated funds revert to the public treasury unless another law provides otherwise, remaining burdened, up to their value, with the lawfully established rights of bona fide third parties.
Official text (Arabic)
This article has not been amended since the law was issued.
ما لم ينص نظام آخر على غير ذلك, تؤول الأموال المصادَرة إلى الخزينة العامة، وتظل هذه الأموال مُحملة في حدود قيمتها بأي حقوق تتقرر بصورة مشروعة لأي طرف آخر حسن النية.
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 36 explained in plain English
This article answers the question: to whom do funds pass after confiscation?
The rule: Confiscated funds revert to the public treasury.
First exception: If another law provides otherwise, what it provides is applied. The article does not specify these laws.
Second exception: the rights of bona fide third parties. Confiscated funds remain burdened with any rights lawfully established in favor of any other bona fide party, up to their value. This means:
- Confiscation does not extinguish the lawful rights of bona fide third parties over these funds.
- These rights are limited by the value of the confiscated funds, and do not exceed it.
- The right must be lawfully established, and its holder must be in good faith.
Article 37 addresses another aspect, allowing the competent authority to dispose of the funds, proceeds or instrumentalities ordered confiscated or recovered in accordance with the law if they are not required to be destroyed, or to share them with states that have valid agreements or treaties with the Kingdom.
The article does not state the procedures for claiming third-party rights. Anyone with a right in confiscated property would do well to consult a lawyer who specializes in criminal or civil cases.
Practical example
A car was confiscated that the convicted person had pledged to a finance company in Riyadh before the offense, and the company did not know of any unlawful activity. The car reverts to the public treasury, but it remains burdened with the company's lawfully established right, up to the value of the car.
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 36 of the Saudi Anti-Money Laundering Law
Where do confiscated funds go in money laundering cases?
They revert to the public treasury, unless another law provides otherwise.
Do I lose my rights if property in which I have a lawful right is confiscated?
They are not extinguished by confiscation; confiscated funds remain burdened, up to their value, with any rights lawfully established in favor of another bona fide party.
More articles on Confiscating Laundered Funds
- Article 33Amended by M/223
The article sets what is confiscated by court judgment on conviction for money laundering or a predicate offense, including funds disproportionate to lawful income, while protecting bona fide third parties and voiding acts that obstruct recovery.
1- مع عدم الإخلال بحقوق الغير الحسن النية، يصادر بحكم قضائي في حال الإدانة بجريمة غسل أموال أو جريمة أصلية ما يأتي: أ- الأموال المغسولة. ب- المتحصلات، فإن اختلط
- Article 34
The article requires the competent court to order confiscation of funds connected to a money laundering offense without conviction, if the offender cannot be tried because of death, flight, absence or unknown identity.
تحكم المحكمة المختصة بمصادرة الأموال المرتبطة بجريمة غسل أموال التي لا تستند على إدانة في حال تعذر محاكمة مرتكب الجريمة بسبب وفاته أو هربه أو غيابه أو عدم تحديد
- Article 35
The article provides for confiscating other funds of equal value from the offender if the funds connected to the offense cannot be confiscated, and completing the value of the proceeds from his other funds if the confiscated amount is less.
1- إذا كانت مصادرة الأموال المرتبطة بجريمة غسل أموال غير ممكنة لكونها لم تعد متوافرة للمصادرة أو لا يمكن تحديد مكانها؛ فتحكم المحكمة المختصة بمصادرة أموال أخرى
- Article 37
The article allows the competent authority, after a confiscation judgment, to dispose of confiscated funds, proceeds or instrumentalities not required to be destroyed under the law, or share them with states that have valid agreements with the Kingdom.
إذا حكم بمصادرة الأموال أو المتحصلات أو الوسائط المستخدمة أو التي اتجهت النية لاستخدامها أو استردادها وفقاً لأحكام النظام وكانت غير واجبة الإتلاف، فللسلطة المخت
- Article 39
The article allows the competent authorities, at the request of another state under a valid agreement or reciprocity, to provide assistance in money laundering and predicate offense cases, such as tracing, freezing and confiscating funds.
للسلطات المختصة -بناءً على طلب من محكمة أو سلطة مختصة في دولة أخرى تربطها بالمملكة اتفاقية سارية أو تبعاً لمبدأ المعاملة بالمثل- أن تُقدم المساعدة في التحقيقات
- Article 40
The article allows the competent authorities to recognize and enforce a final foreign court judgment confiscating funds connected to money laundering or a predicate offense, under specified conditions.
يجوز للسلطات المختصة الاعتراف والتنفيذ لأي حكم قضائي نهائي ينص على مصادرة الأموال أو المتحصلات أو الوسائط المتعلقة بجرائم غسل الأموال أو الجريمة الأصلية، يصدر م
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.