JEDDAH: Thirty-two people have been arrested in Saudi Arabia as part of a corruption investigation into the illegal transfer of SR11.6 billion ($3.1 billion) out of the Kingdom.
Saudi Arabia’s Oversight and Anti-Corruption Authority (Nazaha) is taking legal action against those involved.
An official source at Nazaha said that the authority, with the cooperation of the Saudi Central Bank (SAMA), received information that bank employees received bribes from an organized gang of expats and businessmen to accept cash deposits from unknown sources and then transfer the money out of the Kingdom.
“After conducting field investigations, bank account analysis of the involved commercial entities, and linking them to the customs imports, we found that the deposited cash to the bank accounts of these entities was more than SR11.6 billion and was all transferred abroad,” the source said.
The source added that five expats were arrested while on their way to a bank to deposit more than SR9.8 million in cash.
“Twelve bank employees, seven businessmen, five Saudis, two expats, and a non-commissioned police officer were also nabbed for being involved in bribery, forgery and illegally exploiting their job powers for an illicit financial gain, commercial concealment and money laundering,” the Nazaha source said.
The source said that one businessman set up a number of spurious commercial entities under his own name, and under the names of his wife and son.
According to Nazaha, the businessman opened bank accounts and allowed access to some expats, who used the accounts in exchange for monthly payments. The expats deposited cash from unknown sources and, with the collusion of bank employees, transferred the money abroad.
Bank employees received money and gifts from the expats in exchange for their help, the source said.
The businessman also paid SR300,000 to a noncommissioned police officer, the source said, in exchange for stalling charges against him over suspicious financial dealings that were already under investigation by the police.
“He also paid SR4 million to Saudi mediators for their efforts to stall the same case in the Public Prosecution,” said the source, adding that five other businessmen and a bank branch manager were also detained over similar indictments.
According to the source, a businessman recruited one of the arrested expats and enabled him to work freely inside the Kingdom in exchange for monthly payments.
Talat Zaki Hafiz, founder and member of the Saudi Financial Association, told Arab News: “Since 2017, Saudi Arabia has decided to crack down on corruption and corrupt individuals regardless of who they are or their position in both the government and private sectors.”
He said that a committee set up as part of the crackdown and headed by Crown Prince Mohammed bin Salman has succeeded in returning more than SR100 billion back to the government as well as fixed assets and other money illegally earned by individuals accused of misconduct.
Hafiz believes this “excellent move” by the government will guarantee justice in the Saudi financial system.
“This will also ensure fair dealings in all our government transactions.”
He explained the term “unknown sources” as money that cannot be traced or confirmed by legal and legitimate sources.
Hafiz said that the corrupt individuals pursued different channels to disguise the original source of the “dirty money.”
“They may create artificial businesses, buy fixed assets and financial securities,” he said.
According to Hafiz, SAMA has granted any bank operating in Saudi Arabia the ability to seize provisions when it suspects fraud or wrongdoing.
Saudi legal consultant Dr. Majed Garoub told Arab News that international treaties and agreements allow countries to trace and confiscate money that has been illegally earned or smuggled outside countries.
“There are international cooperation departments in the Ministry of Interior and Public Prosecution that demand such money. This happens in coordination with the Ministry of Foreign Affairs, after, of course, they (prove) the money has been embezzled or taken illegally,” said Garoub.
This can happen only after a court ruling, he added.
Large amounts of money that have been transferred to bank accounts outside the Kingdom could be regained, said Garoub, but only after long and relatively complicated legal and judicial procedures.
“With their efficiency, the Saudi authorities will be able to get the money back,” he said.
Garoub said that the entire process, including the time needed to regain the funds, depends on the country where the money was sent.
“Different countries have different legal regulations and rules,” he said.
Saudi Arabia arrests 32 in $3bn corruption case
https://arab.news/45p7z
Saudi Arabia arrests 32 in $3bn corruption case
- Five people were arrested while trying to deposit SR9.8 million at a bank
- Bank staff among those held over illegal cash transfers, investigators say
Saudi Arabia has told Iran not to attack it, warns of possible retaliation, sources say
Saudi Arabia has told Tehran that while it favors a diplomatic settlement to Iran’s conflict with the United States, continued attacks on the kingdom and its energy sector could push Riyadh to respond in kind, four sources familiar with the matter told Reuters.
The message was conveyed before a speech on Saturday in which Iranian President Masoud Pezeshkian apologized to neighboring Gulf states for Tehran’s actions – an apparent attempt to defuse regional anger over Iranian strikes that hit civilian targets.
Two days earlier, Saudi Foreign Minister Prince Faisal bin Farhan spoke to Iranian Foreign Minister Abbas Araghchi and set out Riyadh’s position with clarity, the sources said.
Saudi Arabia is open to any form of mediation aimed at de‑escalation and a negotiated settlement, the sources quoted the minister as saying, underlining that neither Riyadh nor other Gulf states had let the US use their airspace or territory to launch airstrikes on Iran.
But Prince Faisal was also quoted by the sources as saying that if Iranian attacks persisted against Saudi territory or energy infrastructure, Saudi Arabia would be forced to permit US forces to use their bases there for military operations. Riyadh would retaliate if attacks on the kingdom’s critical energy facilities continued, he said.
The sources said the kingdom had remained in regular contact with Tehran through its ambassador since the US and Israeli military campaign against Iran began on February 28 following the collapse of talks on Iran’s nuclear program.
The Saudi and Iranian foreign ministries did not respond to requests for comment.
Drone and missile attacks on Gulf states
The United Arab Emirates, Kuwait, Qatar, Bahrain and Saudi Arabia have all come under heavy drone and missile fire from Iran over the past week.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, was killed on the first day of the war. Tehran responded by hitting Israel and Gulf Arab states hosting US military installations, and Israel has attacked Lebanon’s Iran-backed Hezbollah armed group.
Araghchi said in an interview on Saturday that he remained in constant contact with his Saudi counterpart and other Saudi officials, adding that Riyadh had assured Tehran it was fully committed to not allowing its territory, waters or airspace to be used for attacks against Iran.
Pezeshkian said Iran’s temporary leadership council had approved suspending attacks on nearby countries – unless an attack on Iran came from those nations.
“I personally apologize to neighboring countries that were affected by Iran’s actions,” he said.
To what extent Pezeshkian’s remarks signal a change is unclear. There were further reports of strikes directed at Gulf states on Saturday.
Also, in a sign of possible divisions within Iran’s leadership, Khatam Al-Anbiya Central Headquarters – the unified combatant command of the Iranian armed forces – said in a statement afterwards that US and Israeli bases and interests across the region would remain targets.
The command said Iran’s armed forces respected the sovereignty and interests of neighboring states and had not taken action against them so far. But it said US and Israeli military bases and assets on land, at sea and in the air across the region would be treated as primary targets and face “powerful and heavy” strikes by Iran’s forces.
US President Donald Trump said in a social media post that Iran had “apologized and surrendered to its Middle East neighbors, and promised that it will not shoot at them anymore. This promise was only made because of the relentless US and Israeli attack.”
Two Iranian sources confirmed that a call had taken place in which Riyadh warned Tehran to halt attacks on Saudi Arabia and neighboring Gulf states. Iran, they said, reiterated its position that the strikes were not aimed at Gulf countries themselves but at US interests and military bases hosted on their territory.
One Iranian source said that Tehran had in response demanded that US bases in the region be closed and some Gulf states stop sharing intelligence with Washington that Iran believes is being used to carry out attacks against it.
Another Iranian source said some military commanders were pressing to continue the strikes, accusing the US of using bases in Gulf states and these countries’ airspace to conduct operations against Iran.
Iran had in recent years mended fences with its Gulf neighbors, including former regional archrival Saudi Arabia. The diplomatic campaign imploded in the blitz of drones and missiles launched by Iran’s Revolutionary Guards in the past week.
