Legal Criminal Rules to Combat Fraud in the Financial Market

Abstract

The study addresses the crime of financial fraud in the financial market, considered one of the most serious contemporary economic crimes due to its emerging fraudulent methods based on deception and misleading, and the resulting undermining of confidence in financial markets and harm to the national economy. The study adopted a descriptive analytical approach by analyzing relevant Saudi legal texts and comparing their contents with those established in other legislation, while drawing on previous relevant studies.

The study concluded that the crime of financial fraud is based on three main pillars: the legal pillar, represented by the existence of criminal texts; the material pillar, based on fraudulent acts in various forms; and the moral pillar, embodied in bad faith and the criminal intent to seize others' money. It also demonstrated that this crime is characterized by modernity and complexity due to its reliance on advanced technological means, which makes its detection and control extremely difficult. Regarding penalties, the study revealed that the Saudi regime has adopted a multi-tiered punitive system, including primary penalties of imprisonment and fines, complementary penalties such as compensation and prohibition from engaging in the activity, as well as precautionary measures such as reprimand, threats, license revocation, and confiscation. The study concluded that combating this crime requires enhancing investment and community awareness, developing legislation to keep pace with emerging forms of digital fraud, intensifying training programs for judicial and regulatory personnel, expanding the scope of international cooperation, and encouraging specialized scientific research in this field.