Article 14 of the Saudi Precious Metals and Gemstones Law
المادة 14 من نظام المعادن الثمينة والأحجار الكريمة
The article punishes with up to two years in prison and a fine of up to SAR 400,000, or either, fraud in precious metals and gemstones, altering hallmarked items and selling unhallmarked ones, with suspension of the license and closure on repeat offenses.
Official text (Arabic)
This article has not been amended since the law was issued.
يعاقب بالسجن مدة لا تزيد على سنتين وبغرامة لا تتجاوز أربعمائة ألف ريال أو بإحدى هاتين العقوبتين:
أ - كل من غش أو خدع في نوع أو وزن أو عيار المعادن الثمينة أو الأصناف المطلية أو المطعمة أو الملبسة بها أو غش أو خدع في نوع الأحجار الكريمة أو صنفها أو وزنها أو مستوى جودتها.
ب - كل من أحدث في المعادن الثمينة أو مشغولاتها بعد دمغها تعديلًا يجعلها غير مطابقة للعيار المدموغة به أو تعامل بها مع علمه بذلك.
ج - كل من باع أو عرض أو حاز بقصد البيع سبائك المعادن الثمينة أو مشغولاتها غير المدموغة بالسمة النظامية.
ويجوز الحكم بتعليق الترخيص وبغلق المحل مدة لا تتجاوز ثلاث سنوات في حال ارتكاب أي من المخالفات المتقدمة مرة ثانية خلال خمس سنوات من تاريخ صدور الحكم النهائي في المخالفة الأولى.
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 14 explained in plain English
This is the most severe penalty article in the Law. The penalty is imprisonment for not more than two years and a fine of not more than SAR 400,000, or either of these penalties, and it applies to three categories:
- Fraud or deception: in the type, weight or karat of precious metals or items plated, inlaid or coated with them, or in the type, class, weight or quality level of gemstones.
- Alteration after hallmarking: altering precious metals or their articles after they are hallmarked so that they no longer match the karat they are hallmarked with, or dealing in them knowing that.
- Selling unhallmarked items: selling bars of precious metals or their articles that are not stamped with the legal hallmark, or displaying them, or possessing them for sale.
Repeat offenses: the court may order suspension of the license and closure of the shop for a period not exceeding three years if any of these violations is committed a second time within five years of the date of the final judgment on the first violation.
These violations are detected, investigated and proved by the employees provided for in Article 13, who have the right to enter, inspect and take samples from factories, workshops, shops and warehouses. Carrying on the manufacture of precious metals or gemstones without a license has a different penalty in Article 15, which is imprisonment for not more than six months and a fine of not more than SAR 90,000, or either. Anyone facing an accusation under this article needs to consult a lawyer specializing in criminal cases.
Practical example
A merchant in Jeddah sold chains as 21-karat gold, and after examination it turned out their karat was lower than that. This is fraud in the karat of a precious metal, and he may be punished with imprisonment for not more than two years and a fine of not more than SAR 400,000, or either. If he repeats this within five years of the first final judgment, the court may order suspension of his license and closure of his shop for a period not exceeding three years.
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 14 of the Saudi Precious Metals and Gemstones Law
What is the penalty for gold fraud in Saudi Arabia?
Imprisonment for not more than two years and a fine of not more than SAR 400,000, or either of these penalties.
What is the penalty for selling unhallmarked gold?
The same penalty applies: imprisonment up to two years and a fine up to SAR 400,000, or either, whether by selling, displaying, or possessing for sale.
When is a violating gold shop closed?
The court may order suspension of the license and closure of the shop for a period not exceeding three years if the violation is repeated within five years of the final judgment on the first violation.
More articles on Penalties for Gold and Jewelry Fraud
- Article 15Amended (1443 AH)
The article punishes with imprisonment of up to six months and a fine of up to SAR 90,000, or either, anyone who manufactures precious metals, their articles or gemstones without a license.
يعاقب بالسجن مدة لا تزيد على ستة أشهر وبغرامة لا تتجاوز تسعين ألف ريال أو بإحدى هاتين العقوبتين، كل من زاول صناعة المعادن الثمينة ومشغولاتها أو الأحجار الكريمة
- Article 16
The article punishes with imprisonment of up to two months and a fine of up to SAR 30,000, or either, anyone who prevents, or causes the prevention of, the competent employees overseeing the Law from carrying out their duties.
يعاقب بالسجن مدة لا تتجاوز شهرين وبغرامة لا تتجاوز ثلاثين ألف ريال أو بإحدى هاتين العقوبتين كل من منع أو تسبب في منع الموظفين المختصين بمراقبة تنفيذ هذا النظام
- Article 17
The article punishes with a fine of up to SAR 200,000 anyone who commits another violation of the provisions of the Precious Metals and Gemstones Law and its regulations.
يعاقب بغرامة لا تتجاوز مائتي ألف ريال كل من ارتكب مخالفة أخرى لأحكام هذا النظام ولوائحه.
- Article 18
The article provides that the penalties in the Precious Metals Law do not prevent penalties under other laws and do not affect the injured party's right to obtain compensation.
لا يخل توقيع العقوبات المنصوص عليها في هذا النظام بتوقيع أي عقوبة تقضي بها أنظمة أخرى كما لا يخل بحق المتضرر في الحصول على التعويض.
- Article 19Amended by M/87
The article permits the judgment or decision imposing a penalty to order publication of its operative part at the violator's expense in a local newspaper or other suitable means, once it becomes final or unchallengeable.
يجوز تضمين الحكم أو القرار الصادر بالعقوبة -بحسب الأحوال- النص على نشر منطوقه على نفقة المخالف في صحيفة محلية تصدر في مقر إقامته، فإن لم يكن في مقر إقامته صحيفة
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.