Financial Fraud and Breach of Trust

• Introduction:

Financial fraud and breach of trust pose a direct threat to economic security and trust in commercial and social dealings. Accordingly, the Financial Fraud and Breach of Trust Law was enacted and came into force to protect public and private funds and to criminalize anyone who attempts to seize the property of others unlawfully.

• What is Financial Fraud?

Anyone who unlawfully seizes another person’s money by committing an act that involves any method of fraud, including lying, deception, or misleading.

Real-Life Examples:

- Promoting a fake investment project.

- Sending fake emails to obtain financial information.

- Real estate fraud by selling property the offender does not own.

• What is Breach of Trust?

Anyone who unlawfully seizes money entrusted to them due to their work, or through trust, partnership, deposit, lending, leasing, mortgage, or agency.

Examples of Breach of Trust:

- An employee embezzling company funds.

- An agent selling the property of the principal for themselves or others without permission.

- A partner seizing profits or assets without the knowledge of the other partners.

• Additional Penalties for Perpetrators and Instigators:

- Instigating, agreeing, or assisting in the crime is punishable even if the crime did not occur.

- Attempt to commit fraud or breach of trust.

- Harsher penalties if the crime is committed by an organized gang or in case of recurrence.

• Confiscation of Tools and Publication of Judgment:

- Tools and proceeds used in the crime are confiscated by court ruling.

- A summary of the ruling may be published in newspapers or other appropriate media, at the expense of the convicted person, if the seriousness and impact of the crime require it.

• Exemption from Punishment:

According to the law, the offender may be exempted from punishment if:

- They voluntarily report to the authorities before the crime is discovered.

- If their report after the crime helps in arresting the other perpetrators (in case of multiple offenders).

• Jurisdiction:

The Public Prosecution is the competent authority to investigate these crimes and file the case before the competent court.

• Conclusion:

The Financial Fraud and Breach of Trust Law in the Kingdom is comprehensive and deterrent, placing the interests of individuals, institutions, and society first. It keeps pace with digital and financial changes and grants investigative and judicial authorities strong tools to combat financial crimes with firmness and justice.

• Have you been a victim of fraud or breach of trust?

At Musa'ad Al-Nassar Law Firm, we have the experience and expertise to handle financial cases and provide full legal services before the Public Prosecution and the courts.