Affirming the continuous development of the legislative and regulatory environment in the Kingdom, the System for Managing Seized and Confiscated Funds in Money Laundering, Related Predicate Offenses, and Terrorist Financing Crimes was issued by Cabinet Resolution No. 16, representing a qualitative leap in protecting national financial security and regulating the preservation of criminal assets. System Objectives According to the official gazette 'Umm Al-Qura', the system aims in its first and second articles to establish a strict legal framework that regulates the preservation of seized funds to ensure their full protection from any exploitation or concealment, and to regulate the management of seized and confiscated assets to serve the public and private interest, with precise definitions for courts, regulatory bodies, and the distinction between funds temporarily seized by order and those permanently confiscated by judicial ruling. Broad Powers The third article of the system officially assigns the responsibility for preserving and managing these funds and assets to the General Authority for the Custody of Minors' Funds and Their Equivalents, based on a direct order from the competent court, and upon request from the relevant administrative or regulatory authority. The fourth article specifies broad powers for the Authority’s Board of Directors in formulating strategic plans and technical rules for managing these diverse assets, with flexibility to contract with private or public entities to manage assets requiring specialized expertise, provided they are wholly owned by Saudis, in addition to obligating the Authority to open independent bank accounts with the Saudi Central Bank or local banks to ensure the highest levels of transparency and financial segregation, as detailed in [Article Four of the System] mentioned in the text. Field Implementation Mechanisms and Safeguards for Protecting Real Estate and Monetary Property Article Five obligates the Authority to implement preservation plans and file lawsuits to protect assets from encroachment and exploitation, while Articles Six, Seven, and Eight regulate procedures for receiving funds by judicial decision, documentation protocols, and prohibition of disposal except with the owner’s consent or judicial permission, with exceptions for public auction of perishable assets or those with high preservation costs, and granting the asset owner the right to object. Article Nine emphasizes exercising ordinary care in preservation, and Article Ten allows the Authority to allocate up to ten percent of the proceeds from funds to cover its administrative and operational expenses. Confiscated funds ultimately revert to the state treasury after a final judicial ruling, according to Article Eleven, with them subject to the rights of bona fide parties, and the Ministry of Finance will manage them, deducting administrative and operational expenses not exceeding 10% of their proceeds based on mechanisms issued by the Minister of Finance within 90 days. Article Twelve emphasizes the confidentiality of information, and Article Thirteen regulates the termination of the Authority’s mission and the return of funds to the court. The system concludes with Articles Fourteen and Fifteen, which stipulate the issuance of implementing regulations within 90 days of publication, with the system entering into effect 90 days after its publication in the official gazette, thereby enhancing the Kingdom’s financial integrity domestically and internationally.

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