Saudi Arabia Unveils New Financial Settlement Framework to Combat Corruption

Saudi Arabia has introduced a groundbreaking initiative to streamline the recovery of embezzled public funds and expedite justice in corruption cases. King Salman, in a royal decree, has approved new regulations aimed at facilitating voluntary financial settlements for individuals and organizations involved in corruption.

Mazen Al-Kahmous, the chairman of the Oversight and Anti-Corruption Authority (Nazaha), expressed his appreciation to the monarch and Crown Prince Mohammed bin Salman for the swift adoption of these rules. The new framework is designed to ensure the return of misappropriated public funds while accelerating the resolution of financial corruption cases.

These regulations empower Nazaha to engage in settlement agreements with individuals or entities that voluntarily report corruption activities that occurred before November 4, 2017, and were previously undetected. One of the key elements is the restoration of stolen funds, including any profits generated, along with an annual penalty of five percent on the misappropriated sum, calculated from the time the offense occurred until full repayment is made.

In exchange for complete transparency and disclosure of the corrupt activities, individuals entering the settlement process will avoid public prosecution. The settlement agreement, once endorsed by the Investigation and Prosecution Unit, becomes final and unappealable.

Settling parties will have up to three years to fulfill their obligations, and failure to do so will result in criminal charges. Recovered funds will be deposited into the state’s treasury, contributing to the national effort to tackle corruption. Notably, individuals who come forward within one year of the decree will be exempt from the five percent penalty, provided they comply fully with the settlement conditions.

The new regulations also extend settlement options to individuals currently convicted, under trial, or facing investigation for corruption prior to the decree’s issuance, although these cases require special royal approval. Convicted persons who adhere to the settlement terms may see their prison sentences reduced or waived.

Additionally, the framework includes provisions for addressing future corruption cases, where individuals who self-report before detection could be eligible for reduced penalties or sentence suspensions, pending royal approval.

As part of this ambitious effort, the Oversight and Anti-Corruption Authority will submit biannual reports to King Salman, tracking the progress of settlements, funds recovered, and providing further recommendations for strengthening anti-corruption measures. Importantly, settlements finalized before the decree remains intact and legally binding, ensuring continuity and fairness in the fight against corruption.

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