RIYADH — Custodian of the Two Holy Mosques King Salman has issued an order approving new financial settlement rules for individuals and entities involved in corruption cases, aimed at recovering embezzled funds and ensuring swift justice in such cases. Chairman of the Oversight and Anti-Corruption Authority (Nazaha) Mazen Al-Kahmous expressed his gratitude to King Salman and Crown Prince Mohammed bin Salman for approving these regulations. He stated that the rules will help restore misappropriated public funds and enhance the efficiency of investigations into and settlements of cases involving financial corruption. Al-Kahmous encouraged individuals to utilize the new settlement procedures, emphasizing they serve as a form of voluntary justice. He also confirmed that no criminal charges will be pursued against those who voluntarily agree to settlements of financial corruption offenses committed before the royal decree was issued. The newly approved regulations, which take effect immediately, grant Nazaha the authority to sign settlement agreements with individuals and entities who voluntarily report corruption cases that took place before November 4, 2017, and were previously undiscovered. Under the new rules, those who enter a settlement must return or recover stolen funds, including any proceeds generated from them, while also paying an annual penalty of five percent on the misappropriated funds, calculated from the time of the offense until full repayment. In return for full disclosure of the corruption case and any related offenses, individuals entering a settlement will be exempt from public prosecution. The agreement, once signed and approved by the head of the Investigation and Prosecution Unit, becomes legally binding and cannot be appealed. A maximum period of three years is allowed for individuals to fulfill their obligations under the settlement agreement. If they fail to comply within this timeframe, criminal proceedings will be initiated against them. All recovered funds will be deposited into the state treasury. However, individuals who voluntarily come forward within one year of the decree's issuance will be exempt from the five percent penalty fee, provided they fully comply with the settlement terms. The rules also extend settlement options to those already convicted, on trial, or under investigation for corruption offenses committed before the decree's issuance. However, these settlements require direct royal approval. Convicted individuals who fully comply with the settlement terms may have their prison sentences waived or reduced. The authority may also apply the settlement framework to individuals who commit corruption offenses after the decree's issuance, provided they voluntarily come forward before discovery. In such cases, courts may impose the minimum penalty or suspend sentences, subject to royal approval. As part of the implementation, the Oversight and Anti-Corruption Authority will submit biannual reports detailing the number of settlements, the amounts recovered, and any further recommendations for addressing corruption-related issues. These reports will be presented to King Salman for review. The decree does not affect any settlement agreements finalized before its issuance, ensuring that prior settlements remain legally binding and irreversible.
