GCC



Egypt Refers Building Violations in Cairo to Prosecution After Surprise Inspections

Egypt Refers Building Violations in Cairo to Prosecution After Surprise Inspections

Illegal construction was demolished, officials were referred to prosecution, and inspections will continue.

Egypt’s Ministry of Local Development and Environment has referred several building and administrative violations in Cairo’s El Marg and Ain Shams districts to the Public Prosecution following surprise inspections aimed at tackling illegal construction and strengthening local government oversight.

In a statement, the ministry said Minister of Local Development and Environment Manal Awad had received a report detailing the findings of an unannounced inspection conducted by the ministry’s Inspection and Performance Evaluation Sector in El Marg district. The report also included the outcome of an investigation into a citizen’s complaint concerning illegal construction at two buildings in Ain Shams.

According to the report, El Marg district issued 10 building permits, completed technical reviews of 133 building reconciliation files, issued 180 reconciliation-related forms, and finalised 22 utility connection compliance requests. Inspection teams also reviewed the performance of local technology service centres and monitored the handling of citizens’ requests and reconciliation procedures.

During the inspections, teams ordered the immediate demolition of unauthorised construction, including illegal floors, columns and reinforced concrete structures erected without permits. Construction materials were confiscated, and legal action was initiated against those responsible.

Inspectors also identified irregularities in several building reconciliation files and delays in responding to a number of spatial monitoring reports. These cases have been referred to the competent prosecution authorities for further action.

The report further highlighted shortcomings in paving and interlocking tile works under the 2025/2026 fiscal year plan. The district administration has been directed to rectify the implementation deficiencies. Inspection teams also conducted campaigns to remove street encroachments, reclaim illegally occupied public spaces, and close several unlicensed commercial establishments.

The ministry said it had uncovered what it described as "serious violations" within El Marg’s housing administration, including failures to take timely legal action against illegal construction, allowing unauthorised buildings to proliferate. The officials concerned have been referred to prosecution.

In Ain Shams, inspectors examined two properties following a complaint lodged with the ministry.

The first property, on Sidi Bilal Street, had been licensed for a basement, ground floor, mezzanine and three upper floors. However, the owner unlawfully extended the building to the ninth floor. The ministry said demolition of the illegal additions had already begun and would continue until all unauthorised structures were removed.

The second property, on Ismail El-Fangary Street, was found to have been built entirely without a permit. The building comprises a ground floor, first floor and structural columns for a second floor. Authorities immediately ordered and commenced demolition of the illegal structure while initiating legal proceedings against those responsible.

Minister Awad directed inspection teams to continue monitoring demolition operations in both districts and reaffirmed the ministry’s commitment to nationwide inspection campaigns. She said the ministry would continue enforcing building regulations, improving public services, holding negligent officials accountable, and responding promptly to citizens’ complaints.

 For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Qatar Warns Motorists to Clear Traffic Fines Promptly or Face Prosecution

Qatar Warns Motorists to Clear Traffic Fines Promptly or Face Prosecution

Ministry of Interior says timely payment of traffic fines helps avoid legal action and prevents additional penalties.

The Qatar Ministry of Interior (MoI) has urged motorists to pay their traffic fines without delay, warning that outstanding violations left unpaid for more than 12 months will be referred to the competent prosecution authorities.

In a public awareness message issued through its official platforms, the Ministry said prompt payment of traffic fines demonstrates compliance with the law, allows motorists to benefit from available incentives and helps prevent the accumulation of violations that could lead to legal proceedings.

The MoI cautioned that once a traffic fine remains unpaid for over a year, the case will be transferred to the relevant prosecution authorities, and reconciliation procedures will no longer be available.

The Ministry also reminded motorists that a 50 per cent discount is available on selected traffic violations if payment is made within one month of the violation being issued.

According to the MoI, settling fines on time not only enables drivers to take advantage of available discounts but also helps them avoid legal liability and any additional penalties resulting from unpaid violations.

The Ministry encouraged all road users to regularly check their traffic fines and settle them within the prescribed deadlines, stressing that compliance with traffic regulations contributes to safer roads and reinforces respect for the rule of law across Qatar.

 
 For any enquiries or information, contact 
ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Bahrain LMRA Introduces Instant Online Cancellation of Labour Agency Licences

Bahrain LMRA Introduces Instant Online Cancellation of Labour Agency Licences

The digital service eliminates paperwork and cuts processing time from two working days to an automated procedure.

The Labour Market Regulatory Authority (LMRA) in Bahrain has transformed its labour supply agency licence cancellation service into a fully digital process, allowing licence holders to automatically cancel their operating licence when their commercial registration is cancelled by the Ministry of Industry and Commerce.

The upgraded service removes the need to submit supporting documents and significantly reduces processing time from two working days to an immediate automated procedure through digital integration.

The enhancement also standardises information across all service channels, improving efficiency while providing users with a simpler, faster and more seamless experience.

Ahmed Al Aradi, LMRA Deputy Chief Executive Officer for Services and Business Affairs, said the initiative is part of the authority’s ongoing efforts to adopt innovative digital solutions that enhance operational efficiency, simplify procedures and improve customer experience.

He said the latest upgrade reflects the LMRA’s commitment to continuously improving the quality of its services, helping customers save time and effort while strengthening the effectiveness of its operational framework.

The initiative forms part of Bahrain’s wider government programme to modernise and re-engineer public services. As part of this effort, more than 1,300 government services have been documented, translated and published.

Around 800 services have already been developed and re-engineered across various government entities, drawing on suggestions and feedback received through the national suggestions and complaints system, Tawasul, investor feedback and government secret shopper reports.

The programme has also introduced service guides and service level agreements, contributing to more efficient procedures, higher-quality public services and an enhanced user experience across government services.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

 

Saudi Arabia Extends Deadline to Rectify Expired Work Permits Until End of 2026

Saudi Arabia Extends Deadline to Rectify Expired Work Permits Until End of 2026

Employers given more time to renew or issue work permits as authorities urge compliance with labour regulations.

Saudi Arabia’s Ministry of Human Resources and Social Development has extended until the end of 2026 the grace period for employers to regularise the status of expatriate workers whose work permits have been expired for more than 12 months.

The extension also applies to expatriate workers who have not been issued a work permit within six months of joining an establishment.

According to the ministry, the decision is intended to strengthen compliance with labour regulations, safeguard the rights of both employers and employees, and give businesses and workers additional time to complete the necessary legal procedures.

The move forms part of the ministry’s wider efforts to improve compliance across the Saudi labour market, following positive responses from a number of establishments and workers that have already taken steps to regularise their employment status.

The ministry urged employers to renew existing work permits or issue new ones before the revised deadline, warning that establishments failing to rectify workers’ status by the end of 2026 will face the applicable legal measures.

The announcement comes just days after the Qiwa platform confirmed that, from July 1, workers whose permits had remained expired for more than three months would be automatically removed from employers’ records.

Under Qiwa regulations, employers remain responsible for all outstanding financial obligations incurred during the employment of workers without valid work permits, even after those workers are removed from the establishment’s records.

Qiwa has advised employers to settle outstanding work permit fees and complete the required procedures, including renewing work permits or transferring workers’ services where applicable, to avoid legal action and financial penalties.

 
 For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

GCC Launches Gulf Legislation Platform to Strengthen Regional Legal Integration

GCC Launches Gulf Legislation Platform to Strengthen Regional Legal Integration

New digital portal brings together more than 24,700 legislative documents to improve access and legal co-operation.

The Gulf Cooperation Council (GCC) has launched the Gulf Legislation Platform, a new digital initiative aimed at strengthening legislative integration and improving access to laws and regulations across the six member states.

The platform was unveiled on Sunday at the GCC General Secretariat headquarters as part of the Council's broader efforts to enhance legal co-operation, harmonise legislation and support the development of a more integrated regulatory framework across the Gulf region.

Designed as a central electronic repository, the platform enables users to access both unified Gulf legislation adopted through joint GCC action and national legislation from member states through a single online portal. It is expected to serve as an important reference for governments, legal professionals, policymakers, academics and researchers working on legislative and regulatory matters.

Speaking at the launch, GCC Secretary General Jasem Mohamed Albudaiwi praised the teams responsible for developing the initiative, describing it as an important step towards advancing legislative co-ordination within the Council. He noted that the platform implements a decision adopted during the 19th meeting of the Standing Committee of Officials of Legislation Departments in the GCC States, which approved the establishment of a specialised digital platform to facilitate access to unified Gulf legislation and national legal frameworks.

The platform offers advanced search and filtering capabilities, allowing users to quickly locate legislation across a wide range of legal subjects. By consolidating legislative resources in a single database, it is intended to simplify legal research, improve transparency and encourage greater exchange of legal expertise among GCC member states.

Officials said the initiative will also support legislative drafting, policy development and regulatory alignment by providing a comprehensive and reliable source of legal information. Easier access to comparable legislation is expected to assist governments as they continue efforts to modernise laws and align regulatory approaches in areas of shared economic and strategic interest.

The Gulf Legislation Platform currently hosts more than 24,700 legal and legislative documents, making it one of the region's most comprehensive digital legal repositories. The database is expected to continue expanding as new legislation and legal instruments are adopted across the GCC.

The launch reflects the GCC's wider objective of promoting legislative harmonisation to facilitate economic integration, improve the business environment and strengthen legal certainty across the region. By providing a unified legislative reference, the platform is expected to support more consistent legal interpretation and closer co-operation among lawmakers, regulators and judicial authorities throughout the Gulf.

 
For any enquiries or information, contact 
ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Oman Tightens Private Sector Bribery Laws with Harsher Jail Terms and Fines

Oman Tightens Private Sector Bribery Laws with Harsher Jail Terms and Fines

Royal decree expands criminal liability, penalises rejected bribe offers and raises punishment for offenders.

Oman has strengthened its anti-bribery framework by expanding private sector bribery offences and introducing tougher penalties under amendments to the Penal Code issued through Royal Decree No. 66 of 2026.

Published in the Official Gazette, the amendments create a dedicated chapter on private sector bribery, replacing earlier provisions under the Labour Law. The reforms widen the scope of criminal liability, increase prison terms and impose penalties even on those whose bribe offers are rejected.

Under the amended law, employers, board members and employees of private sector entities who solicit, accept or are promised a benefit in exchange for carrying out, delaying or refraining from duties related to their work face prison terms ranging from one to three years. They may also be fined at least the value of the benefit received or promised.

The punishment increases to between three and five years in prison if the benefit is linked to acts that violate professional duties or involve a failure to perform work-related obligations. In such cases, offenders will also face fines of no less than the value of the benefit involved.

The amendments also criminalise attempted bribery, with prison terms of between three months and one year for anyone who offers a bribe that is refused.

Bribe givers and intermediaries will face the same penalties as recipients. However, those who voluntarily report or confess to the offence before it is uncovered may be exempt from punishment. Confessions made after discovery may still be considered a mitigating factor.

The provisions apply to private sector companies and institutions, as well as international public institutions headquartered in Oman.

Government representatives serving on company boards, employees of wholly state-owned enterprises, and those working for companies in which the government holds more than 40 per cent of the capital will remain subject to separate bribery provisions applicable to public officials under the Penal Code.

 

 For any enquiries or information, contact 
ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Saudi Arabia Courts Reject Nearly 90% of Arbitration Annulment Applications

Saudi Arabia Courts Reject Nearly 90% of Arbitration Annulment Applications

Proposed legal reforms aim to strengthen the Kingdom’s global position as a dispute resolution hub: SCCA report.

Saudi Arabia’s courts have rejected nearly 90 per cent of applications seeking to annul arbitration awards, according to new research that offers one of the clearest indicators yet of the Kingdom’s increasingly arbitration-friendly legal environment.

The findings, published in a comprehensive report by the Saudi Center for Commercial Arbitration (SCCA), are based on an analysis of 967 arbitration-related appellate decisions issued by Saudi Courts of Appeal between January 2023 and June 2025. The study provides fresh empirical insight into how Saudi courts interact with arbitration proceedings and could influence international parties considering Saudi Arabia as a seat for dispute resolution.

The report, titled Arbitration in Saudi Arabia, was prepared by the SCCA research team in connection with the forthcoming UNCITRAL Digest of Case Law on the UNCITRAL Model Law on International Commercial Arbitration. It also examines proposed legislative reforms contained in the Draft Saudi Arbitration Law published for public consultation in late 2025.

The most striking finding is the high rejection rate for annulment requests. Out of 194 annulment applications reviewed during the study period — representing just over 20 per cent of all appellate decisions — 174 were dismissed. That translates into an 89.7 per cent rejection rate.

Only 20 applications succeeded, with 12 resulting in full annulment and eight in partial annulment.

According to the report, the successful cases were largely confined to procedural failings, such as breaches of statutory deadlines or instances where one of the exclusive grounds under Article 50 of the Saudi Arbitration Law was established. Importantly, the courts consistently treated those grounds as exhaustive, refusing to revisit factual findings or re-examine the merits of disputes.

That approach is likely to reassure international investors and commercial parties, particularly those concerned about post-award risks.

One of the longstanding concerns among foreign businesses has been the possibility of arbitral awards being challenged on public policy or Sharia law grounds. However, the report suggests those concerns may be overstated.

It found that reliance on Sharia as a ground for annulment was “extremely limited”, with only one recorded case of partial annulment on that basis—just 0.5 per cent of the total annulment applications. Public policy was cited successfully in only three cases, or 1.55 per cent.

The wider trend appears equally consistent. Across SCCA studies covering more than 3,300 judgments between 2017 and 2025, a total of 91.7 per cent of annulment applications were rejected, while only 2.3 per cent involved successful challenges based on Sharia or public policy.

The report highlights that Saudi courts apply these grounds in narrowly defined circumstances. In one 2023 case, an award was annulled because a tribunal recognised an unregistered lease as valid, conflicting with regulatory requirements. In another, a tribunal incorrectly applied a statutory limitation period.

A separate 2025 enforcement case also illustrated the courts’ careful balancing of Sharia compliance. While the court enforced most parts of an arbitral award involving a lease dispute, it refused to enforce a delay penalty because it amounted to riba, or interest, which is prohibited under Islamic law.

Beyond annulment statistics, the report points to a judiciary that intervenes sparingly in arbitration proceedings but steps in when due process or impartiality is compromised.

Saudi courts were found to respect party-agreed mechanisms for appointing arbitrators, intervening only in exceptional circumstances. Examples included cases where one party unilaterally appointed the full tribunal, where a tribunal was effectively composed of employees of one party, or where tribunal composition changed without notice to the opposing party.

Procedural fairness in service of notices also emerged as a key issue. Courts annulled awards where defective service deprived parties of the opportunity to defend themselves. In particular, the report noted that WhatsApp messages sent to numbers not officially registered by the receiving party were deemed insufficient for valid service.

The study also confirmed the Saudi courts’ recognition of the Kompetenz-Kompetenz principle, under which arbitral tribunals have the authority to determine their own jurisdiction. Courts upheld the separability of arbitration clauses, meaning the invalidity or termination of the underlying contract does not automatically invalidate the arbitration agreement.

In one notable 2025 Riyadh commercial case, the court ruled that an SCCA decision rejecting an arbitrator challenge could not itself be challenged in court, reinforcing the finality of institutional arbitration rules agreed by the parties.

Alongside its case law analysis, the report reviews proposed changes in the Draft Arbitration Law, which aim to modernise and streamline arbitration procedures.

Among the most significant reforms are the removal of the requirement for a sole arbitrator or tribunal chair to hold a Sharia or law degree, broader recognition of digital hearings and electronic signatures, expanded interim relief powers, and the formal introduction of emergency arbitrators.

The draft law also proposes multi-party proceedings, removes the default 12-month deadline for awards unless agreed by parties, and simplifies enforcement by eliminating the requirement to deposit awards with courts before enforcement is sought.

Legal analysts say these reforms could significantly reduce procedural disputes and bring Saudi Arabia more closely in line with established global arbitration hubs.

Taken together, the report paints a picture of a legal system increasingly geared toward supporting arbitration, with courts maintaining a restrained supervisory role and lawmakers pushing for greater efficiency and flexibility.

For businesses and investors, the findings signal a jurisdiction seeking to position itself as a competitive and credible seat for international arbitration.

 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Kuwait Begins 3rd Phase of Legal Overhaul, Plans 150 New Laws by 2027

Kuwait Begins 3rd Phase of Legal Overhaul, Plans 150 New Laws by 2027

Justice ministry to review 400 statutes as reforms target criminal justice, family law and business regulations.

Kuwait has launched the third phase of its National Plan to Modernise the Legislative System, a major legal reform drive that will review 400 existing laws and introduce around 150 new ones by December 2027.

Announcing the move, Minister of Justice Counsellor Nasser Al-Sumait said the latest phase aims to raise the completion rate of Kuwait’s legislative modernisation to nearly 40 per cent of the country’s total legal framework.

Speaking at a press conference, Al-Sumait said the third phase marks a significant step as it goes beyond piecemeal amendments and focuses on revising major laws that directly affect daily life, economic activity and the efficiency of the justice system.

He said the reforms are designed to strengthen family protection, improve the stability of transactions, enhance the business environment and boost the performance of state institutions, alongside improving legal and judicial services.

The announcement follows the completion of the second phase of the programme, which covered 250 laws and accounted for around 25 per cent of Kuwait’s legislative framework. That phase introduced 24 new laws, amended 56 others and repealed nine, in addition to finalising 161 laws, decrees and approvals linked to international agreements and memoranda of understanding — six months ahead of schedule.

Al-Sumait said the second phase was made possible through coordination between the judiciary, Public Prosecution, Fatwa and Legislation Department, Kuwait University’s Faculty of Law, the Kuwait Lawyers Association and civil society organisations.

The third phase will prioritise legislation with direct economic, criminal and social impact. Key areas under review include the Penal Code, Criminal Procedures Law, Personal Status Law, Family Court Law and legislation related to child and family protection.

He said reforms to criminal justice will focus on alternative sentencing, reconciliation mechanisms and faster procedures while preserving fair trial guarantees. Family-related laws will also remain central, with the Child Law — currently under development — expected to undergo major revisions to address legal gaps and strengthen protections for children.

On the economic front, the reforms will cover the Real Estate Registration Law, Labour Law in the private sector, Commercial Arbitration Law, Economic Courts Law and Insurance Law, along with amendments to Civil Code provisions governing public auctions.

Al-Sumait said the Commercial Arbitration Law is expected to ease pressure on courts by allowing companies to resolve disputes more quickly.

He also revealed that amendments to the Penal Code, which has remained largely unchanged for over 60 years, are expected to be finalised next week.

The minister said the reforms aim to address long-running disputes caused by legislative gaps, improve legal efficiency and reduce the burden on courts.

On judicial performance, Al-Sumait said the total number of cases before Kuwaiti courts fell by 21 per cent in the second half of 2025 compared with the same period in 2024, dropping from about 534,000 to 423,000.

Cases before the Court of Cassation fell by 45 per cent, from about 12,000 to 7,000, while criminal cases before the Court of First Instance dropped by 27 per cent, from 286,000 to 208,000.

He also highlighted a 27 per cent decline in partial appeals in civil and commercial cases, falling from 6,000 to 4,000, which he attributed to legislative changes raising the appeal threshold from KD1,000 to KD2,000.

Performance orders in civil and commercial matters also dropped by 40 per cent, from around 56,000 to 34,000 cases, after procedural amendments made such orders optional rather than mandatory, while retaining a separate expedited framework for commercial instruments.


 For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

 

Faster Justice: Qatar’s Digital Courts Cut Average Case Duration to 38 Days

Faster Justice: Qatar’s Digital Courts Cut Average Case Duration to 38 Days

Over 70 online services and robust cybersecurity measures are reshaping Qatar’s judicial system under its Vision 2030.

Qatar’s judicial digital transformation is rapidly reshaping access to justice, with the average litigation period now reduced to just 38 days and electronic judicial services expanding across multiple platforms.

According to Judge Nasser Mohammed Al Hajri, Senior Judge at Qatar’s Investment and Commerce Court, the country’s move towards digitised judicial services has significantly improved efficiency, accessibility and data security.

Speaking on Qatar Television, Judge Al Hajri said the digital shift forms part of the Justice Systems Development Initiative, introduced to align the judicial sector with the goals of Qatar National Vision 2030.

He said the initiative’s digital transformation strategy aims to automate judicial procedures, establish a fully integrated digital judicial ecosystem, shorten litigation timelines, optimise judicial resources, reduce paper use and strengthen electronic integration with other government entities.

Judge Al Hajri said the Supreme Judiciary Council of Qatar has achieved substantial progress since introducing electronic judicial services. The average duration of court cases has fallen to 38 days, with 94 per cent of cases now concluded within three months. He added that the courts have also achieved an annual case resolution rate of 98 per cent.

The Council currently offers more than 70 electronic services through its judicial portal, along with 35 additional services via its smart mobile application. These services, he said, support Qatar National Vision 2030 by promoting innovation in judicial administration, building a technologically skilled workforce and improving institutional efficiency.

Judge Al Hajri explained that digital access now covers every stage of litigation, from filing a lawsuit to obtaining final judgments.

Electronic services include case registration, submission of requests, issuance of judicial orders and decisions, payment of court fees and expert deposits, as well as case registration and inquiry services through WhatsApp.

He said the expanded digital framework has eased access to justice by reducing the need for litigants to physically visit courts, streamlining internal judicial procedures and allowing users to access services at any time.

On the use of artificial intelligence, Judge Al Hajri said the Supreme Judiciary Council has started deploying AI tools within strict legal boundaries. These technologies are being used to analyse quantitative data, review judicial precedents and assist with administrative work before and after judgments. AI is also being utilised in support services through virtual assistants and chatbot systems.

He stressed, however, that judicial independence remains non-negotiable, with the authority to issue judicial decisions resting solely with judges. Artificial intelligence, he said, remains a support mechanism and cannot replace judicial reasoning or discretion.

Addressing cybersecurity and confidentiality, Judge Al Hajri said safeguarding judicial data has remained a key priority since the launch of the initiative.

He said the Council operates on locally hosted electronic systems and servers based within Qatar to ensure full data sovereignty and prevent unauthorised external access. Additional safeguards include encrypted judicial communications, data anonymisation, identity protection technologies such as voice and image masking, and a governance framework overseeing all electronic judicial systems.

Judge Al Hajri added that the digital litigation platform is regularly upgraded to counter emerging cyber threats and protect sensitive judicial information.

Reaffirming the Council’s long-term commitment, he said Qatar will continue enhancing judicial services and adopting advanced technologies to simplify litigation while preserving the independence, integrity, confidentiality and security of its justice system.

 

 For any enquiries or information, contact 
ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

Travelling to Saudi? Declare Cash and Gold Above SR40,000 Under New Rules

Travelling to Saudi? Declare Cash and Gold Above SR40,000 Under New Rules

New regulations widen customs inspection powers and tighten disclosure requirements for undeclared cash and valuables.

Saudi Arabia has lowered the mandatory declaration threshold for cash and valuables carried through its land, sea and air ports from SR60,000 ($16,000) to SR40,000 ($10,600) under updated executive regulations to its Anti-Money Laundering Law.

Published in the official gazette Umm Al-Qura, the revised rules require travellers entering or leaving the Kingdom to submit a written declaration if they are carrying cash, bearer negotiable instruments, gold bullion, precious metals, gemstones, jewellery or similar valuables worth SR40,000 or more, or the equivalent in foreign currency.

The amendments also give the Zakat, Tax and Customs Authority (ZATCA) broader powers to inspect individuals, vehicles, shipping containers and postal parcels within customs zones, whether arriving in or departing from the Kingdom.

Under the new regulations, ZATCA may seize undeclared or falsely declared cash, bearer negotiable instruments, gold bullion, precious metals, gemstones or jewellery for up to 72 hours if authorities suspect a link to a predicate offence or money laundering, even if the value falls below the mandatory declaration threshold.

The authority must document every seizure, conduct preliminary inquiries into the origin of the assets and the reasons for non-declaration or false declaration, and deposit seized currency into a designated trust account while retaining precious metals and gemstones under customs custody.

The Public Prosecution may extend the seizure period by up to 60 days, with any further extension requiring approval from the competent court.

Travellers carrying gold bullion, precious metals, gemstones or jewellery worth SR40,000 or more must also present purchase invoices to customs officials for valuation. If the items are found to be intended for commercial purposes, they will fall under the Unified Customs Law and its executive regulations.

The amendments further strengthen anti-money laundering compliance obligations for financial institutions by requiring group-wide information-sharing policies to support customer due diligence and risk management, while maintaining confidentiality and complying with personal data protection laws.

Financial institutions and designated non-financial businesses and professions must also identify the ultimate beneficial owner of legal entities, including any natural person who owns or controls 25 per cent or more of an entity, or exercises effective control through other means.

The regulations also require Saudi financial institutions operating overseas to apply the Kingdom’s anti-money laundering requirements wherever possible and to notify Saudi regulators if local laws prevent compliance.

Violations of the declaration rules carry financial penalties ranging from 10 per cent to 25 per cent of the value of seized assets for a first offence, provided there is no suspicion of money laundering or another underlying crime. Repeat violations may attract fines of up to 50 per cent of the seized amount.

Where authorities suspect the seized assets are linked to money laundering or another predicate offence, the case must be referred to the Public Prosecution for investigation, with the Saudi Financial Intelligence Unit notified immediately.

 
 For any enquiries or information, contact 
ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.