Article 40 of the Saudi Anti-Money Laundering Law
المادة 40 من نظام مكافحة غسل الأموال · الفصل التاسع: التعاون الدولي
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 من محكمة مختصة بدولة أخرى تربطها بالمملكة اتفاقية سارية أو تبعاً لمبدأ المعاملة بالمثل، وذلك إذا كانت الأموال أو المتحصلات أو الوسائط التي نص الحكم بمصادرتها؛ جائزاً إخضاعها للمصادرة وفقاً للنظام المعمول به في المملكة.
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 40 explained in plain English
This article deals with the case where a court in another state has issued a judgment ordering the confiscation of funds, proceeds or instrumentalities, and enforcement is sought against funds in the Kingdom. The article is permissive: it gives the competent authorities the power to recognize and enforce, and does not oblige them to.
The conditions that must all be met:
- The judgment is a final court judgment.
- It provides for confiscating funds, proceeds or instrumentalities connected to money laundering offenses or the predicate offense.
- It is issued by a competent court in another state.
- That state is bound to the Kingdom by a valid agreement, or it is by the principle of reciprocity.
- The funds, proceeds or instrumentalities subject to the judgment may be made subject to confiscation under the law in force in the Kingdom.
The last condition is important: it is not enough for the foreign judgment to order confiscation; the funds must be of a kind that may be confiscated in the Kingdom. Confiscation, as Article 1 defines it, is the permanent stripping and deprivation of funds based on a judgment of a competent court.
This article is connected to Article 39, which allows assistance to be provided to other states in tracing, freezing and confiscating funds, and to Article 41 on receiving and surrendering accused and convicted persons. Anyone against whom a foreign confiscation judgment concerning funds in the Kingdom has been issued would do well to consult a lawyer who specializes in criminal or international cases.
Practical example
A court in a country bound to the Kingdom by a valid agreement issued a final judgment confiscating a sum shown to be proceeds of smuggling, and the sum is deposited in a bank in Riyadh. The competent authorities may recognize and enforce this judgment, provided the sum is of a kind that may be made subject to confiscation under the law in force in the Kingdom.
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 40 of the Saudi Anti-Money Laundering Law
Is a confiscation judgment issued by a foreign court enforced in Saudi Arabia?
The competent authorities may recognize and enforce it if it is final and concerns money laundering or the predicate offense, and was issued by a competent court in a state bound to the Kingdom by a valid agreement or under reciprocity.
Is it enough for the foreign judgment to be final?
No. The funds subject to the judgment must also be of a kind that may be made subject to confiscation under the law in force in the Kingdom.
Is enforcement mandatory for the authorities?
The article uses the word "may", so it gives the power to recognize and enforce without making it mandatory.
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 38
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.
يجوز للسلطات المختصة إصدار الطلبات إلى الجهات الأجنبية النظيرة وتبادل المعلومات معها والقيام بالتحريات نيابةً عنها في الدول التي تربطها بالمملكة اتفاقيات سارية،
- 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 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.