Article 49 of the Saudi Counter-Terrorism Crimes and Financing Law
المادة 49 من نظام مكافحة جرائم الإرهاب وتمويله · الفصل الرابع: العقوبات
Article 49 punishes a legal person with a fine of SAR 3 million to SAR 10 million if its owners, representatives, managers or agents commit a crime under the Law in its name or for its account, and allows suspension of its activity or liquidation.
Official text (Arabic)
This article has not been amended since the law was issued.
يُعاقب بغرامة لا تزيد على (عشرة) ملايين ريال ولا تقل عن (ثلاثة) ملايين ريال، كل شخص ذي صفة اعتبارية ارتكب أي من مالكيه أو ممثليه أو مديريه أو وكلائه أي من الجرائم المنصوص عليها في النظام أو ساهم فيها، إذا وقعت الجريمة باسم الشخص ذي الصفة الاعتبارية أو لحسابه، وذلك دون إخلال بمسؤولية الشخص ذي الصفة الطبيعية مرتكب الجريمة. وللمحكمة المختصة الحكم بإيقاف نشاط الشخص الاعتباري بصفة مؤقتة أو دائمة، أو بإغلاق فروعه أو مكاتبه التي اقترن استخدامها بارتكاب الجريمة بصفة دائمة أو مؤقتة، أو بتصفية أعماله، أو بتعيين حارس قضائي لإدارة الأموال والعمليات. وفي جميع الحالات يجوز تضمين الحكم الصادر بالعقوبة النص على نشر ملخصه على نفقة المحكوم عليه في صحيفة محلية تصدر في مقر إقامته، فإن لم تكن في مقره صحيفة ففي أقرب منطقة له، أو نشره في أي وسيلة أخرى مناسبة، ولا يتم النشر إلا بعد أن يكتسب الحكم الصفة القطعية.
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 49 explained in plain English
This article establishes the liability of companies and entities with legal personality for terrorism and terrorist financing crimes. A legal person is punished with a fine of no less than SAR 3 million and no more than SAR 10 million on two conditions:
- One of its owners, representatives, managers or agents commits any of the crimes under the Law or contributes to it.
- The crime is committed in the name of the legal person or for its account.
This does not relieve the natural person who committed the crime; the article provides that the fine is without prejudice to his liability.
Additional discretionary penalties: the competent court, which under Article 1 is the Specialized Criminal Court, may order any of the following:
- Suspending the legal person's activity temporarily or permanently.
- Closing its branches or offices whose use was linked to committing the crime, temporarily or permanently.
- Liquidating its business.
- Appointing a judicial custodian to manage the funds and operations.
Publication of the judgment: in all cases the judgment may include publishing a summary of it at the convicted party's expense in a local newspaper published in his place of residence, or if none exists, in the nearest area to him, or by any other suitable means. Publication takes place only after the judgment becomes final.
The article follows Article 48, on traveling to commit crimes under the Law, and precedes Article 50 on increasing penalties. Companies facing such proceedings should consult a lawyer who specializes in criminal cases and company matters.
Practical example
The manager of a trading company in Jeddah used the company's accounts to transfer sums to a terrorist entity under the cover of supply deals, and the transfers were made in the company's name. If this is established, the company may be punished with a fine of SAR 3 million to SAR 10 million, and the court may suspend its activity, close its branch or liquidate it, in addition to punishing the manager himself.
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 49 of the Saudi Counter-Terrorism Crimes and Financing Law
What is the penalty for a company involved in terrorist financing?
A fine of no less than SAR 3 million and no more than SAR 10 million, with the court able to suspend its activity, close its branches, liquidate it or appoint a judicial custodian.
Is the manager excused if the company is punished?
No. The article provides that the legal person's penalty is without prejudice to the liability of the natural person who committed the crime.
When is a conviction judgment published?
The judgment may include publishing a summary of it at the convicted party's expense, and publication takes place only after the judgment becomes final.
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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.