Article 21 of the Saudi Insurance Control Law

This is the law's main penalties article, made up of three paragraphs:

1. Operating without a license: anyone who practices insurance business or provides insurance ancillary services without a license from the Saudi Central Bank is punished with a fine not exceeding SAR 2 million and imprisonment for up to 4 years, or either of these two penalties. This is without prejudice to any more severe penalty provided for in another law.
2. Other violations: subject to paragraph 1, anyone who violates any provision of the law is punished with a fine not exceeding SAR 2 million. If the violation continues, a fine not exceeding SAR 10,000 for each day it continues is imposed.
3. Publication: the penalty decision may provide for a summary of it to be published at the violator's expense in a local newspaper or any other suitable means, depending on the type, gravity and effect of the violation, provided that publication takes place after the decision becomes final.

Note that imprisonment is provided only in paragraph 1, that is, for someone operating without a license. The daily fine is meant to stop the violator from continuing the violation.

This article is connected to Article 20, whose Primary Committee hears interested parties' grievances against penalties and measures issued by the Central Bank within 30 days of notification, and to Article 22, which creates an Appeal Committee to hear grievances against Primary Committee decisions, whose decisions are final. Amendment: this text is the wording as amended by Royal Decree No. M/12 dated 23/1/1443 AH. Anyone facing a charge under this article should consult a lawyer specialized in insurance and financial-sector matters.