Article 40 of the Saudi Anti-Narcotics and Psychotropic Substances Law
المادة 40 من نظام مكافحة المخدرات والمؤثرات العقلية
The article punishes laundering of funds derived from narcotics offenses with 3 to 10 years in prison, flogging and a fine of at least SAR 50,000, and fines a benefiting establishment at least SAR 300,000.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يعاقب بالسجن مدة لا تقل عن ثلاث سنوات ولا تزيد على عشر سنوات وبالجلد بما لا يزيد على خمسين جلدة في كل مرة، وبغرامة لا تقل عن خمسين ألف ريال - كل شخص ارتكب الفعل المنصوص عليه في الفقرة (5) من المادة (الثالثة) من هذا النظام، وللمحكمة إيقاع عقوبة أشد إذا توافرت في القضية أسباب موجبة لذلك.
2- تعاقب بغرامة لا تقل عن ثلاثمائة ألف ريال أي شركة أو مؤسسة أو منشأة -حتى وإن كان غير مرخص لها نظاما بممارسة نشاطها- أدين مديرها أو أحد منسوبيها بارتكاب الفعل المنصوص عليه في الفقرة (5) من المادة (الثالثة) من هذا النظام إذا ثبت أن الفعل قد ارتكب لمصلحتها.
3- إذا كان هذا الفعل معاقبا عليه بموجب هذا النظام ونظام آخر فتطبق العقوبة الأشد.
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 sets the penalty for the act in paragraph 5 of Article 3, which is laundering funds derived from committing any of the offenses provided for in the Law.
Money laundering, by the definition of Article One, is any direct or indirect act aimed at acquiring funds, rights or property resulting from offenses under this Law, or transferring them, or concealing or disguising their true nature, source, location, movement or ownership, or contributing to that, or helping a person connected with these offenses to launder funds and escape punishment.
Penalty of the person (paragraph 1): imprisonment for a period of not less than 3 years and not more than 10 years, flogging of no more than 50 lashes at a time, and a fine of not less than SAR 50,000. The court may impose a harsher penalty if there are grounds in the case requiring it.
Penalty of the establishment (paragraph 2): a fine of not less than SAR 300,000 on any company, institution or establishment, even if it is not legally licensed to carry on its activity, on two conditions:
- that its manager or one of its personnel is convicted of committing the act of laundering funds,
- and that it is established that the act was committed for its benefit.
Multiple laws (paragraph 3): if the act is punishable under this Law and another law, the harsher penalty is applied.
This offense differs from simple possession in Article 39, whose penalty is imprisonment from two to 5 years. Anyone facing an accusation of money laundering, whether an individual or an establishment, needs a lawyer specialized in criminal cases.
Practical example
A person owns a small commercial business in Riyadh and uses its accounts to deposit funds from selling narcotics and show them as business profits. If he is convicted of money laundering, he is punished with imprisonment from 3 to 10 years, flogging and a fine of at least SAR 50,000, and if it is established that the act was committed for the benefit of the business, the business is fined at least SAR 300,000.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 40 of Anti-Narcotics and Psychotropic Substances Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Criminal Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Criminal Law lawyers
Lawyers who handle this kind of case
شركة امتداد النظام للمحاماة والاستشارات المهنية
- Labour & Employment Law
- Criminal Law
- Criminal Law
- Commercial & Corporate Law
Frequently asked questions about Article 40 of the Saudi Anti-Narcotics and Psychotropic Substances Law
What is the penalty for laundering drug money?
Imprisonment from 3 to 10 years, flogging of no more than 50 lashes at a time, and a fine of at least SAR 50,000, and the court may impose a harsher penalty if there are grounds requiring it.
Is a company punished if its employee launders drug money?
It is punished with a fine of at least SAR 300,000 if its manager or one of its personnel is convicted and it is established that the act was committed for its benefit, even if it is not licensed.
If money laundering is punishable under another law, which penalty applies?
The harsher penalty is applied, under paragraph 3 of Article 40.
Articles this article refers to
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.