Article 37 of the Saudi Anti-Money Laundering Law
المادة 37 من نظام مكافحة غسل الأموال · الفصل الثامن: المصادرة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا حكم بمصادرة الأموال أو المتحصلات أو الوسائط المستخدمة أو التي اتجهت النية لاستخدامها أو استردادها وفقاً لأحكام النظام وكانت غير واجبة الإتلاف، فللسلطة المختصة التصرف بها وفقاً للنظام، أو اقتسامها مع الدول التي تربطها مع المملكة اتفاقيات أو معاهدات سارية.
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 37 explained in plain English
This article deals with the stage after a confiscation judgment is issued, that is: what is done with the funds, proceeds or instrumentalities after the judiciary orders their confiscation or recovery under the provisions of the law. Confiscation, as Article 1 defines it, is the permanent stripping and deprivation of funds, proceeds of the crime or instrumentalities based on a judgment of a competent court.
Scope of the article:
- Funds ordered confiscated or recovered.
- Proceeds, which are funds arising directly or indirectly from a predicate offense.
- Instrumentalities used in the offense, or intended for use.
The condition: These things must not be required to be destroyed; what must be destroyed is outside the disposal or sharing provision here.
The two options available to the competent authority:
- Disposing of them in accordance with the law.
- Sharing them with states that have valid agreements or treaties with the Kingdom.
This article is connected to Article 36, which provides that confiscated funds revert to the public treasury unless another law provides otherwise, remaining burdened, up to their value, with any lawful rights of another bona fide party. It is also connected to the provisions on international cooperation, including Article 38, which allows the competent authorities to exchange information with counterpart foreign bodies.
The article does not state the sharing proportions or mechanism, but ties it to the existence of a valid agreement or treaty. Anyone with a right or interest in funds that were confiscated would do well to consult a lawyer who specializes in criminal cases and financial crimes.
Practical example
A final court judgment was issued confiscating sums deposited in bank accounts that were shown to be proceeds of a fraud committed partly outside the Kingdom, and a valid agreement exists between the Kingdom and that country. Under this article the competent authority may dispose of these sums in accordance with the law, or share them with that country according to the agreement.
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 37 of the Saudi Anti-Money Laundering Law
Can confiscated funds be shared with another country?
Yes. The competent authority may share them with states that have valid agreements or treaties with the Kingdom.
Does the article cover things that must be destroyed?
No. The article concerns only funds, proceeds and instrumentalities that are not required to be destroyed.
Where do confiscated funds go in the first place?
Article 36 provides that they revert to the public treasury unless another law provides otherwise, with the rights of bona fide third parties preserved up to their value.
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 36
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.
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 ال
- 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.