Saudi Arabia Enacts New Financial Settlement Regulations for Corruption Cases
King Salman approves measures to recover embezzled funds and expedite justice
Saudi Arabia has introduced new financial settlement regulations aimed at individuals and entities involved in corruption cases.
The initiative, approved by King Salman bin Abdulaziz Al Saud, seeks to recover misappropriated public funds and enhance the efficiency of corruption investigations and settlements.
Mazen Al-Kahmous, Chairman of the Oversight and Anti-Corruption Authority (Nazaha), expressed gratitude to King Salman and Crown Prince Mohammed bin Salman for endorsing these regulations.
He emphasized that the rules are designed to restore embezzled public funds and improve the effectiveness of financial corruption investigations.
The regulations authorize Nazaha to enter into settlement agreements with individuals and entities who voluntarily report undisclosed corruption offenses committed before November 4, 2017. To qualify for a settlement, participants must return or recover stolen funds, including any derived proceeds, and pay an annual penalty of five percent on the misappropriated amounts, calculated from the time of the offense until full repayment.
In exchange for full disclosure, participants will be exempt from public prosecution.
The settlement agreement becomes legally binding upon approval by the head of the Investigation and Prosecution Unit and cannot be appealed.
Participants are allotted a maximum of three years to fulfill their obligations under the agreement; failure to comply within this period will result in the initiation of criminal proceedings.
All recovered funds will be deposited into the state treasury.
Individuals who voluntarily come forward within one year of the decree’s issuance will be exempt from the five percent penalty fee, provided they fully comply with the settlement terms.
The regulations also extend settlement options to those already convicted, on trial, or under investigation for corruption offenses committed before the decree’s issuance, subject to direct royal approval.
Convicted individuals who fully comply with the settlement terms may have their prison sentences waived or reduced.
Nazaha may apply the settlement framework to individuals who commit corruption offenses after the decree’s issuance, provided they voluntarily come forward before discovery.
In such cases, courts may impose the minimum penalty or suspend sentences, subject to royal approval.
The Oversight and Anti-Corruption Authority will submit biannual reports detailing the number of settlements, amounts recovered, and any further recommendations for addressing corruption-related issues to King Salman for review.
The decree does not affect any settlement agreements finalized before its issuance, ensuring that prior settlements remain legally binding and irreversible.
The initiative, approved by King Salman bin Abdulaziz Al Saud, seeks to recover misappropriated public funds and enhance the efficiency of corruption investigations and settlements.
Mazen Al-Kahmous, Chairman of the Oversight and Anti-Corruption Authority (Nazaha), expressed gratitude to King Salman and Crown Prince Mohammed bin Salman for endorsing these regulations.
He emphasized that the rules are designed to restore embezzled public funds and improve the effectiveness of financial corruption investigations.
The regulations authorize Nazaha to enter into settlement agreements with individuals and entities who voluntarily report undisclosed corruption offenses committed before November 4, 2017. To qualify for a settlement, participants must return or recover stolen funds, including any derived proceeds, and pay an annual penalty of five percent on the misappropriated amounts, calculated from the time of the offense until full repayment.
In exchange for full disclosure, participants will be exempt from public prosecution.
The settlement agreement becomes legally binding upon approval by the head of the Investigation and Prosecution Unit and cannot be appealed.
Participants are allotted a maximum of three years to fulfill their obligations under the agreement; failure to comply within this period will result in the initiation of criminal proceedings.
All recovered funds will be deposited into the state treasury.
Individuals who voluntarily come forward within one year of the decree’s issuance will be exempt from the five percent penalty fee, provided they fully comply with the settlement terms.
The regulations also extend settlement options to those already convicted, on trial, or under investigation for corruption offenses committed before the decree’s issuance, subject to direct royal approval.
Convicted individuals who fully comply with the settlement terms may have their prison sentences waived or reduced.
Nazaha may apply the settlement framework to individuals who commit corruption offenses after the decree’s issuance, provided they voluntarily come forward before discovery.
In such cases, courts may impose the minimum penalty or suspend sentences, subject to royal approval.
The Oversight and Anti-Corruption Authority will submit biannual reports detailing the number of settlements, amounts recovered, and any further recommendations for addressing corruption-related issues to King Salman for review.
The decree does not affect any settlement agreements finalized before its issuance, ensuring that prior settlements remain legally binding and irreversible.
