Article 38 of the Saudi Anti-Money Laundering Law
المادة 38 من نظام مكافحة غسل الأموال · الفصل التاسع: التعاون الدولي
The article allows the competent authorities to address counterpart foreign bodies, exchange information with them and carry out inquiries on their behalf, under a valid agreement or reciprocity.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز للسلطات المختصة إصدار الطلبات إلى الجهات الأجنبية النظيرة وتبادل المعلومات معها والقيام بالتحريات نيابةً عنها في الدول التي تربطها بالمملكة اتفاقيات سارية، أو تبعاً لمبدأ المعاملة بالمثل، وذلك وفقاً للإجراءات النظامية المتبعة ودون أن يشكل ذلك إخلالاً بالسيادة الوطنية للدولة أو بالأعراف والأنظمة المتعلقة بسرية المعلومات.
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 38 explained in plain English
This article sets the legal basis for cooperation between the competent Saudi authorities and their counterparts in other countries in the field of combating money laundering. Under Article 1, the competent authorities are the administrative authorities, the authorities competent to apply the laws, or the supervisory authorities.
What the article allows:
- Making requests to counterpart foreign bodies.
- Exchanging information with them.
- Carrying out inquiries on their behalf.
When is this permitted? In one of two cases: where valid agreements bind the Kingdom and that country, or by the principle of reciprocity, meaning the Kingdom deals with a country in the way that country deals with it.
The restrictions:
- The cooperation must take place in accordance with the legal procedures followed.
- It must not constitute a breach of the country's national sovereignty.
- It must not breach the customs and laws relating to the confidentiality of information.
The article is permissive, meaning it gives the authorities a discretionary power and does not oblige them to respond to every request. It comes within the provisions on international cooperation, including Article 39, which allows assistance to be provided in investigations and proceedings at the request of a court or competent authority in another country, and refers to the Implementing Regulations to set out the additional types of assistance and their conditions. Anyone facing a measure connected to a foreign request would do well to consult a lawyer who specializes in criminal or international cases.
Practical example
A Saudi supervisory authority traced suspicious financial transfers that reached an account in a country bound to the Kingdom by a valid agreement. Under this article it may send a request to the counterpart body in that country to exchange information about the account, in accordance with the legal procedures and with regard to the laws on confidentiality of information.
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 38 of the Saudi Anti-Money Laundering Law
May Saudi Arabia exchange financial information with other countries?
Yes. The competent authorities may exchange information with counterpart foreign bodies if a valid agreement exists or under the principle of reciprocity.
What does reciprocity mean?
That the Kingdom cooperates with the other country to the extent that country cooperates with the Kingdom, even if there is no agreement between them.
Are there limits to this cooperation?
Yes. It must take place in accordance with the legal procedures followed and without breaching national sovereignty or the customs and laws relating to the confidentiality of information.
More articles on International Cooperation and Extradition
- Article 22
The article allows the General Department of Financial Intelligence to exchange information with counterpart foreign bodies and enter into arrangements with them, after obtaining an undertaking to use the information only for the purpose it was requested.
1- للإدارة العامة للتحريات المالية أن تتبادل مع أي جهة أجنبية نظيرة أو تطلب منها أي معلومة متصلة بعملها، ولها أن تُبرم -وفقاً للإجراءات النظامية- مع أي جهة أجنب
- 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
- Article 41
The article allows receiving and surrendering an accused or convicted person in a money laundering offense under a valid agreement or reciprocity, and provides for trial in the Kingdom if the extradition request is refused.
يجوز تسلم المتهم أو المحكوم عليه في جريمة غسل الأموال من دولة أخرى وتسليمه إليها، على أن يكون التسليم إعمالاً لاتفاقية سارية بين المملكة والدولة الطالبة، أو بنا
- Article 42
The article provides that the Standing Committee for Mutual Legal Assistance Requests is the body that receives assistance requests relating to money laundering offenses and the related predicate offenses.
تقوم اللجنة الدائمة لطلبات المساعدة القانونية المتبادلة بتلقي طلبات المساعدة القانونية المتبادلة المتعلقة بجرائم غسل الأموال والجرائم الأصلية المرتبطة بها.
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.