The directive is set to reshape the country’s approach to financial misconduct cases
Dubai: Saudi Arabia has introduced new financial settlement rules aimed at expediting the recovery of embezzled public funds and ensuring swift justice in corruption cases.
The directive, issued by Saudi Arabia’s King Salman, is set to reshape the country’s approach to financial misconduct cases by offering individuals and entities the option to voluntarily return misappropriated funds in exchange for legal exemptions.
Mazen Al Kahmous, chairman of the Oversight and Anti-Corruption Authority (Nazaha), described the new framework as a significant step toward enhancing financial integrity and improving investigative efficiency in corruption-related cases.
The regulations, effective immediately, grant Nazaha the authority to sign settlement agreements with individuals and entities who voluntarily report previously undiscovered corruption offenses committed before November 4, 2017.
Those who opt for a settlement must return or recover stolen assets, including any financial gains derived from them, while paying a five percent annual penalty on the misappropriated funds until full repayment is made.
However, individuals who voluntarily come forward within one year of the decree’s issuance will be exempt from the penalty fee, provided they fully comply with the settlement terms. In return for full disclosure of the corruption case, participants will be granted immunity from public prosecution.
Once a settlement agreement is finalized and approved by the head of the Investigation and Prosecution Unit, it becomes legally binding and irreversible. Those who fail to meet their obligations within a three-year period will face criminal prosecution.
The new rules extend settlement options to individuals already convicted, on trial, or under investigation for corruption offenses committed before the decree’s issuance.
However, such cases require direct royal approval. Convicted individuals who fully comply with settlement terms may have their sentences reduced or waived.
Additionally, those who commit financial offenses after the decree’s issuance may also be eligible for settlements if they voluntarily report their actions before discovery. In such cases, courts may impose minimal penalties or suspend sentences, subject to royal approval.
All recovered funds will be transferred to the state treasury. Meanwhile, Nazaha has been tasked with submitting biannual reports to King Salman, detailing the number of settlements, amounts recovered, and further recommendations for tackling corruption.
The decree does not affect previous settlements finalized before its issuance, ensuring that earlier agreements remain legally binding and irreversible.
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