SAUDI ARABIA Law and Practice Contributed by: Saud AlRomi, Mostafa Ihab and Saleh Elbadry, Mohammed AlDhabaan & Partners Eversheds Sutherland
Corrupt Payments The Anti-Bribery Law applies to both the public and private sectors. The Anti-Bribery Law criminalises offering, promising, giving, soliciting, accepting or receiving a bribe, and treats the giver and the recipi - ent as equally liable. Under Article 8 of the Anti-Bribery Law, the definition of “public official” is broad, cover - ing banking sector employees and employees of com - panies with government shareholding. Public official bribery carries up to ten years’ imprisonment and/or a fine of up to SAR1 million under Articles 1 and 2 of the Anti-Bribery Law. Private employees bribery – involving employees of private companies, sole pro - prietorships or professional bodies – carries up to five years’ imprisonment or a fine of up to a SAR500,000, or both, under Articles 9 bis 1 and 9 bis 2 of the Anti- Bribery Law. Conspiracy and Participation Both the Anti-Financial Fraud Law and the Anti-Brib - ery Law extend liability to those who conspire, incite or assist in the commission of fraud or bribery. Under Article 3 of the Anti-Financial Fraud Law and Article 10 of the Anti-Bribery Law, facilitators face the same maximum penalty as the principal offender where the offence is carried out. Civil and Criminal Proceedings Civil and criminal proceedings are not mutually exclu - sive. Under Article 69 of the Criminal Procedure Law, a victim may assert a private right claim before the public prosecution during the criminal investigation itself. Under Article 22 of the Criminal Procedure Law, the end of a criminal action does not extinguish a civil claim, and Article 143 (2) of the CTL confirms that a compensation claim arising from a crime remains alive for as long as the criminal case does. The interaction between these two tracks is explored further in 2.5 Criminal Redress . 1.2 Causes of Action After Receipt of a Bribe Civil Remedies An agent owes duties of care and loyalty to their prin - cipal under the CTL. Accepting a bribe breaches both duties and gives the principal a direct compensation claim for any resulting loss. More specifically, where the bribe influenced a transaction – whether an agent purchases at an unconscionable or above-specified
price (Article 492) or sells below the specified or mar - ket price (Article 494) – the principal may refuse to ratify the transaction. In either case, the transaction is deemed concluded for the agent’s own account, and the principal may separately claim compensation for any loss suffered. Article 491 (2) of the CTL prohibits an agent from purchasing from any person from whom the agent stands to gain or avoid a loss, and Article 495 of the CTL imposes the same prohibition in the context of selling – both provisions capture the bribery arrangement. Criminal Remedies The principal may file a criminal complaint under the Anti-Bribery Law against both the agent and the bribing party. The Anti-Bribery Law applies to bribe recipients acting in a relevant capacity – where the agent is employed in the private sector (whether by a private company, sole proprietorship or professional body) – such that the receipt of a bribe in connection with the performance or refrainment of their duties is an offence under Article 9 bis 2, and the bribing party faces equal criminal exposure under Article 9 bis 1. Where the agent falls within the definition of “public official” under Article 8 – which extends to employees of joint-stock companies, companies managing public facilities and banking sector employees, among oth - ers – the heavier penalties apply under Articles 1 to 6. Bribery is classified as a corruption crime under Article 2 of the Oversight and Anti-Corruption Authority Law (the “Nazaha Law”). Under Article 4 of the Nazaha Law, the Oversight and Anti-Corruption Authority (“Nazaha”) acts with the full powers of public prosecu - tion for corruption crimes and is therefore the com - petent authority to receive the complaint, investigate and try the case before the designated criminal court. 1.3 Claims Against Parties Who Assist or Facilitate Fraudulent Acts Civil Claims Where a third party assisted in or facilitated a fraud that induced a contract, the victim’s first step is to seek nullification of that contract, under Article 63 of the CTL, as explained in 1.1 General Characteris- tics of Fraud Claims . Once nullified, payments made under the contract become recoverable as undue pay - ments under Articles 145 to 147 of the CTL.
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