Article 23 of the Saudi Penal Law on Forgery Crimes

This article establishes the liability of the private establishment itself for forgery offenses, in addition to the liability of the person who committed them.

The conditions for its application are:

1. It must be a private establishment operating in the Kingdom.
2. It must be established that its manager or one of its personnel committed an offense under the law.
3. The offense must be in its interest.
4. It must be with its knowledge.

If these conditions are met, the establishment is punished with two penalties together:

• A fine of up to SAR 10,000,000.
• A ban from contracting with any public entity for a period of 2 to 5 years.

The establishment's penalty does not replace the individual's; the text is explicit that this is without prejudice to any penalty the law provides against the natural person who committed the offense. The manager or employee is punished with his penalty, and the establishment with its own.

This article comes after Article 22, which requires confiscation of seized items used in the offense and derived from it, and before Article 24, which allows the competent court to suspend any ancillary penalty in certain offenses.

Establishments facing such liability would do well to consult a lawyer who specializes in criminal cases or one who specializes in commercial and corporate matters.