Saudi Arabia Regulates Management of Assets Seized in Money Laundering, Terrorism Financing Cases

Saudi Arabia has enacted a new law governing the preservation and management of assets seized in money laundering, predicate offenses, and terrorism financing cases. The legislation aims to prevent misuse, concealment, or damage of these assets, thereby safeguarding public and private interests and contributing to the Kingdom's economic and social development. Hamad Al Sheikh, Minister of State and Chairman of the Board of the Commission for the Guardianship of Trust Funds of Minors and Their Counterparts, stated that the Cabinet's approval reflects the leadership's commitment to enhancing the judicial and regulatory framework, improving government efficiency, and promoting governance and transparency. The law is designed to protect rights, build confidence in government institutions, and support the objectives of Saudi Vision 2030 by establishing a comprehensive legal structure for asset management. It clarifies the law's scope, designates responsible authorities, and outlines the legal and procedural rules for asset preservation and management. Al Sheikh further noted that the legislation will optimize the management of seized assets, maximize their economic value, improve spending efficiency, protect public resources, and bolster the Kingdom's legal and investment environment. The law promotes justice and transparency, secures the rights of individuals and stakeholders, and supports sustainable development and quality of life. According to Al Sheikh, the law adheres to international best practices and demonstrates Saudi Arabia's commitment to the Financial Action Task Force (FATF) standards, enhancing the Kingdom's global standing in governance and institutional management. The 15-article law, published in the official gazette, assigns the Authority responsibility for preserving and managing seized assets upon court order and at the request of the competent authority. Its board can establish management policies, engage specialized Saudi public or private entities for assets requiring technical expertise, and open dedicated accounts at the Saudi Central Bank or licensed banks to hold seized funds.

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the Cabinet’s approval of the Law on the Management of Assets Seized and Confiscated in Money Laundering, Predicate Offenses, and Terrorism Financing Cases reflects the leadership’s commitment to strengthening the judicial and regulatory framework, improving government efficiency, and reinforcing governance and transparency.