Article 4 of the Saudi Anti-Money Laundering Law

المادة 4 من نظام مكافحة غسل الأموال · الفصل الثاني: التجريم

The article makes the money laundering offense independent of the predicate offense, and provides that intent, knowledge or purpose is established from the objective and factual circumstances of the case.

Official text (Arabic)

This article has not been amended since the law was issued.

1- تعد جريمة غسل الأموال جريمة مستقلة عن الجريمة الأصلية، ولا تلزم إدانة الشخص بارتكاب الجريمة الأصلية من أجل إدانته بجريمة غسل الأموال أو من أجل اعتبار الأموال متحصلات جريمة, سواء ارتكبت الجريمة الأصلية داخل المملكة أو خارجها.

2- يُتحقق من القصد أو العلم أو الغرض في ارتكاب جريمة غسل الأموال من خلال الظروف والملابسات الموضوعية والواقعية للقضية.

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 4 explained in plain English

This article deals with two important matters in proving the money laundering offense:

First: independence of the offense. Money laundering is a stand-alone offense, separate from the predicate offense from which the funds arose (such as fraud, bribery or drug smuggling). It follows that:

A person need not be convicted of the predicate offense in order to be convicted of money laundering.
A conviction for the predicate offense is not required for the funds to be considered proceeds of a crime.
It makes no difference whether the predicate offense was committed inside or outside the Kingdom.

The absence of a judgment on the predicate offense is therefore not in itself a bar to considering a money laundering charge, which is consistent with the definition of the predicate offense in Article 1, which includes acts committed outside the Kingdom.

Second: proving intent and knowledge. The acts in Article 2 rest on the offender's knowledge that the funds are proceeds of a crime, and sometimes on a specific purpose such as concealing the source. Paragraph 2 provides that this intent, knowledge or purpose is established from the objective and factual circumstances of the case, meaning from the facts surrounding the act, and not from the accused's confession alone.

Assessing these circumstances varies from case to case, so anyone facing an accusation needs a lawyer who specializes in criminal cases to study the circumstances of their case.

Practical example

Saad received funds suspected of coming from a fraud that took place in another country, and no judgment has been issued in that country against the fraudster. That does not in itself prevent a money laundering charge against Saad from being considered in the Kingdom, because the offense is independent, and his knowledge of the source of the money is drawn from the circumstances of the case, such as the way it was received, the size of the sums and how he dealt with them.

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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