Breach of trust in Saudi Arabia is a crime closely tied to the noble values of Saudi society, and it is taken very seriously. Consequently, the legislator in Saudi Arabia has established a set of severe penalties for those who commit this crime. It has become increasingly common due to the growing number of transactions and interests among people, as well as a decline in morals and religious values among the perpetrators.
Breach of trust is defined in Saudi law as the unlawful seizure or control of entrusted property, with the intent to harm, by the offender or the person in possession of the property due to their job or position of trust. This applies to partnerships, loans, mortgages, agency, or lease agreements involving private and non-public funds.
Breach of trust doesn’t only concern money but also any movable property. Acts of embezzlement, forgery, destruction, and fraud can also be considered breaches of trust if the property was entrusted to the offender.
Proving Breach of Trust
To establish a breach of trust, the following elements must be proven:
- The plaintiff handed the disputed property over to the defendant, whether through a contract or otherwise.
- The defendant failed to return the property to the plaintiff at the agreed time.
- The defendant acted with bad intent, deliberately withholding the property to seize control over it.
Elements of Breach of Trust in Saudi Arabia
The Saudi government has identified the following elements of breach of trust:
- Material Element: This refers to the criminal activity of the offender, which involves seizing and using the entrusted property as if it were their own. The key components include:
- Handing over the trust: The property is entrusted to the offender, distinguishing it from theft where the property is taken without consent.
- Criminal action by the offender: This includes acts such as embezzlement, misuse, or misappropriation of the entrusted property.
- Place of breach: This encompasses all the items that the offender embezzled, misused, or misappropriated, such as buildings, assets, or money.
- Harm caused by the breach: Any harm, whether material or emotional, caused to the victim by the offender’s actions. The law does not require actual harm to occur but considers the possibility of harm. The harm can also be emotional, such as the seizure of a sentimental item.
- Moral Element: This involves the offender’s criminal intent, knowing that their actions violate the law and that they will face penalties. The offender must also have the desire to harm others. Key components include:
- The offender knows that their possession of the entrusted item is temporary.
- The offender intentionally converts temporary possession into full control.
- The offender is aware that their actions will harm the original owner of the entrusted item, whether the harm is likely or certain to occur.
- Legal Element: This is the foundation of the crime, as it provides the legal basis for punishing offenders. In Saudi Arabia, this is done through the Financial Fraud and Breach of Trust Law.
Penalties for Breach of Trust in Saudi Arabia
Saudi law imposes the following penalties for breach of trust:
- According to Article 2 of the Financial Fraud and Breach of Trust Law, any person who unlawfully seizes or controls property entrusted to them as a deposit, loan, mortgage, lease, or agency, or due to their job, with bad intent or causing intentional harm, can be sentenced to up to five years in prison and a fine of up to three million SAR. One of these penalties may suffice.
- Article 3 of the same law states that anyone who incites or helps in committing the crime is subject to the same penalties as the perpetrator if their assistance led to the crime.
- According to Article 4, if the crime does not occur despite incitement or assistance, the penalty will not exceed half of the original maximum punishment, meaning a prison sentence of up to two and a half years and a fine of up to 1.5 million SAR.
- If the fraud occurs after the entrusted property is misappropriated, Article 1 of the law states that the penalty can be up to seven years in prison and a fine of up to five million SAR. One of these penalties may suffice.
Defenses in Breach of Trust Cases in Saudi Arabia
These are all the arguments and evidence presented by the accused to disprove the plaintiff’s claims and charges. Defenses include:
- Proving ownership of the disputed property and confirming that it was not entrusted.
- Demonstrating the absence of a trust agreement.
- Proving that there was no criminal intent to seize the property and that the accused was unaware of the illegality of using the entrusted property.
- Challenging the lack of strong evidence proving the existence of a breach of trust or the handover of the entrusted property to the accused.
Conclusion
In any crime, certain circumstances may lead to the case being dropped. For breach of trust, these include the plaintiff waiving their right to prosecute, the timing of the lawsuit, or the absence of any element of the crime, whether material or moral.
It is essential to seek the help of an experienced lawyer, as breach of trust is a serious crime with varying penalties depending on the severity of the offense. A lawyer can also help negotiate with the victim to reach an agreement, leading to the withdrawal of the case.
