SAUDI ARABIA Trends and Developments Contributed by: Saud AlRomi, Mostafa Ihab and Saleh Elbadry, Mohammed AlDhabaan & Partners Eversheds Sutherland
Mohammed AlDhabaan & Partners Eversheds Sutherland Home Offices Complex, Office 10-11 Al Urubah Rd Al Mathar Al Shamali
Riyadh 12334 Saudi Arabia
Tel: +966 114 844 448 Fax: +966 112 816 611 Email: mail@aldhabaan.eversheds.com Web: www.eversheds-sutherland.com/en/saudi-arabia
Introduction This article examines four developments that have materially changed how fraud is detected and prose - cuted, and assets recovered, in Saudi Arabia. The first is the growing enforcement record of Nazaha – Saudi Arabia’s Oversight and Anti-Corruption Authority – and the Capital Market Authority (CMA), both of which are producing concrete prosecution outcomes in finan - cial fraud cases. The second is the comprehensive digitisation of the Ministry of Justice’s enforcement infrastructure, which has reduced the time and proce - dural steps required to freeze assets following a court order and has integrated enforcement courts directly with banks and payment service providers. The third is the Companies Law 2022, which consolidates crimi - nal and civil liability for corporate insiders who commit fraud. The fourth is the Whistleblower Law, enacted in 2024, which addresses the detection gap in fraud cases by protecting and financially incentivising indi - viduals who report wrongdoing. These developments are connected: stronger enforcement outcomes depend on faster detection, faster detection depends on people being willing to report and faster recovery of assets depends on the enforcement infrastructure being able to act quickly once a case is filed. Enforcement Activity: Nazaha and Capital Market Fraud Nazaha is the primary body responsible for investi - gating and prosecuting corruption-related financial offences in Saudi Arabia. In 2025, Nazaha conducted more than 21,200 inspection rounds, investigated over 3,100 suspects across ministries, agencies and
state-linked entities, and ordered the arrest of approx - imately 950 individuals on charges including bribery, abuse of authority and related financial offences. Nazaha’s criminal investigation and prosecution unit operates through 26 branches nationwide, staffed by seconded public prosecutors exercising full prosecu - torial powers. The Nazaha Law was enacted on 29 July 2024 and came into effect on 7 November 2024. Under Arti - cle 19 of the Nazaha Law, where a public employee’s wealth increases disproportionately after taking office and investigations uncover evidence of corruption, the individual must justify the source of that wealth or face escalation to Nazaha’s investigative unit and potential asset confiscation. Article 20 provides that where the accused absconds or dies before prosecu - tion, Nazaha continues to gather evidence and pursue recovery of misappropriated funds, co-ordinating with the Ministry of Justice to enforce rulings both domes - tically and internationally. In June 2024 alone, Nazaha conducted 924 facility inspections and arrested 155 public officials. Since the Nazaha Criminal Investiga - tion Unit’s inception in September 2024, 280 investi - gations have been opened with 130 people subject to arrest. Bribery and corruption offences are predicate offenc - es under the Anti-Money Laundering Law. This means that when Nazaha investigates a corruption case, the asset recovery and confiscation powers of the Anti- Money Laundering Law are simultaneously available – including the power to freeze assets and compel
300 CHAMBERS.COM
Powered by FlippingBook