In July 2024, the Saudi Council of Ministers approved a strengthened legal framework designed to combat corruption among government employees.

Saudi Arabia has taken a bold step in combating corruption with the introduction of a revised legal framework. The Saudi Council of Ministers approved the updated Nazaha Law in July 2024, set to take effect on November 7, 2024. This significant overhaul of the original 2011 legislation aims to intensify accountability for government officials and strengthen anti-corruption initiatives.

nazaha saudi arabia meaning It is an official body dedicated to combating corruption within the public sector, promoting transparency, and ensuring that government employees adhere to high ethical standards.

Strengthened Measures in Saudi Arabia’s Fight Against Corruption

One of the law’s key provisions, outlined in Article 2, introduces the reverse burden of proof. Public officials with wealth that cannot be justified by their declared income must prove the legitimacy of their assets. This extends to their immediate family members, including spouses, children, and parents. By shifting the burden of proof, Nazaha enhances the prospects of convicting those involved in corruption, bribery, or abuse of power.

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Heightened Accountability for Public Employees

Under Article 19, public officials found with disproportionate wealth linked to corruption will face investigations. Failure to provide a credible explanation will lead to escalated cases, potentially resulting in severe penalties, including asset confiscation.

If an accused absconds or dies before prosecution, Article 20 empowers Nazaha to continue evidence collection and recover misappropriated funds, ensuring accountability transcends personal circumstances. Additionally, Article 22 introduces a settlement mechanism for accused individuals, with details pending further clarification.

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Expanded Mandate and Investigative Powers

The updated Article 10 expands Nazaha’s mandate, allowing specialized units to report directly to King Salman and Crown Prince Mohammed Bin Salman. These units will focus on investigations, integrity protection, transparency, administrative oversight, and international cooperation. Nazaha has reiterated its zero-tolerance stance, emphasizing that no individual, regardless of rank, will evade accountability.

Under Article 5, Nazaha’s authority extends to demanding documents, conducting investigations, and recovering assets. The law also introduces enhanced protections for whistleblowers and an expanded definition of corruption to encompass administrative and financial violations.

Implications of nazaha law for Businesses in Saudi Arabia

The new law has significant implications for businesses operating in the Kingdom. Recent data shows Nazaha’s aggressive approach, with 155 arrests and 924 inspections in June 2024 alone. From 2021 to 2023, over 5,000 individuals were arrested for corruption-related offenses, reflecting the law’s strict enforcement.

Steps for Businesses to Mitigate Risks

To comply with the evolving regulatory environment, businesses must strengthen internal controls and compliance frameworks. Key steps include:

• Reviewing policies on gifts, hospitality, and facilitation payments.
• Conducting thorough due diligence on third-party engagements.
• Implementing anti-corruption training programs for employees.

By aligning with the updated Nazaha Law, organizations can reduce corruption risks and contribute to Saudi Arabia’s vision of transparency and integrity.

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What is the meaning of Nazaha?

Nazaha is an Arabic term meaning “integrity” or “honesty.” In Saudi Arabia, it refers to the Oversight and Anti-Corruption Authority, which is responsible for promoting transparency, combating corruption, and enforcing accountability in both public and private sectors.

What is the corruption law in Saudi Arabia?

Saudi Arabia’s anti-corruption efforts are governed by the Nazaha Law and related legislation, including provisions under the Penal Code and Bribery Law. The laws impose strict penalties for corruption, bribery, embezzlement, and abuse of power. Key features include:

• A reverse burden of proof requiring officials to justify disproportionate wealth.
• Empowering Nazaha to investigate, recover assets, and protect whistleblowers.
• Severe penalties such as imprisonment, fines, and asset confiscation for violations.

Saudi Arabia’s robust anti-corruption measures, spearheaded by Nazaha, emphasize integrity, transparency, and accountability. Through comprehensive laws like the Nazaha Law, the Kingdom aims to combat corruption effectively while fostering trust in its institutions. Whether through reporting channels or proactive compliance, both individuals and businesses play a vital role in supporting these efforts for a more transparent and just society.