News developments
Saudi Arabia: Penalties Amended Under New Judicial Implementation Law
Saudi Gazette, 7 September 2021: The Saudi Arabian authorities are considering a new Judicial Implementation Law which will contain amended penalties for violations.
Under the Law, debtors will not be detained and electronic services will still be available to them.
Public sector employees who are involved in preventing or obstructing the implementation of verdicts will be jailed for up to five years. This will be considered an honesty offence.
In addition, there is a provision aimed at addressing the discrepancy between a travel ban order and a decision to terminate the residency permit or iqama of non-Saudi debtors.
Implementation procedures for court orders also ban financial dealings with those who have defaulted in carrying out financial rights.
Those facing proceedings under the Law should have their details announced as well as individuals who are suspected of financing them illegally.
Those who provide incorrect information will also commit an offence.
There will be a system to track illegal funds and the court will have more powers to track, interrogate, recover and invalidate these funds and transactions.
Orders on the seizure and enforcement of the funds owned by the State cannot be issued.
Similarly houses where the insolvent and their legal dependents live as well as their means of travel if their values do not exceed the amount of their solvency cannot be seized unless they are mortgaged to a creditor.
Verdicts on wages and salaries cannot be increased more than 50% of the total wage or salary in the verdict related to alimony debt. It cannot be more than 33.3% for other debts.
In both alimony and other debts, half of the total wage or salary will be allocated to the alimony debt and 33% to other debts.
If there are multiple debts, 33% of the other 50% will be distributed among the creditors in line with the Law and its Implementing Regulations.
An insolvent individual will also be able to continue practising their profession or their craft. They will also be able to carry out their personal obligations. The court will have to assess their solvency and decide on the amount of Government subsidies which can be extended to them.
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