Saudi Arabia has approved amendments to the regulation governing the management of assets seized or confiscated in money laundering, related predicate offences, and terrorism financing cases.
The updated regulation is designed to strengthen financial integrity, protect seized assets, and ensure that confiscated funds are managed in a way that supports the Kingdom’s economic and social development.
Different Authorities for Different Stages
Under the new rules, responsibility for managing assets depends on their legal status.
Assets that have been seized during an investigation will be preserved and managed by the General Authority for the Guardianship of Minors’ Property and Those of Similar Status. The authority may act only under an order issued by the competent court, helping ensure that the assets are protected from misuse, concealment, or deterioration while legal proceedings continue.
Once assets are confiscated under a final court judgment, ownership transfers to the State Treasury. The Ministry of Finance will then be responsible for managing and disposing of the assets in a manner that serves the public interest and supports national development.
Up to 10% for Administrative Costs
The amended regulation allows both the General Authority and the Ministry of Finance to deduct up to 10% of the returns generated from the assets to cover administrative and operational expenses related to their management.
The provision is intended to ensure the sustainable management of seized and confiscated assets without placing additional financial burdens on the state budget.
Sale of Perishable or Costly Assets
The regulation also introduces measures to protect the value of seized assets.
With approval from the competent court, the General Authority may sell seized assets through a public auction if they are likely to deteriorate over time or if the cost of preserving them becomes disproportionately high. A sale may also be permitted if continuing to manage the assets is no longer economically viable.
If the court later lifts the seizure and the assets are not ultimately confiscated, the owner will have the right to claim the proceeds from the auction sale.
Strict Confidentiality Rules
The amendments also introduce strict confidentiality requirements. Officials are prohibited from disclosing confidential information related to seized or confiscated assets or using such information for personal benefit.
The new regulation will come into force 90 days after its publication, providing the relevant authorities time to implement the updated procedures.