Amendments to Anti-Bribery Law in Saudi Arabia: Implications for Private Sectors

This article discusses the recent amendments made to the anti-bribery law in Saudi Arabia and their implications for the private sectors. It explores the code of conduct and ethical standards for gift exchange and provides recommendations for improving company practices. The article highlights the importance of compliance with the law and emphasizes the need for employees to make their own judgments in accordance with ethical practices. Subject: Law, Course Code: N/A, Course Name: N/A, College/University: N/A, Document Type: Article, Assignment Type: N/A

I: Several amendments have introduced in context to the anti-bribery law, by the
government of Saudi, and these changes are specifically applicable to the private sectors. These
amendments have led to the open discussion within the businesses, in relation to the Code of
Conduct (the “code”) and the associated principles related to the exchange of the gifts. The
memo defines their objective to address the code of conduct of the company and defines their
conformity to the ethical standards. Moreover, it provides some recommendations for the
enhancement of the practices of company in accordance to the ethical standards to increase
the efficiency of practices of the companies.
R: In context to the above law, inclusive of the Sharia law it has found that gifts and
entertainment are termed as ‘bribe’ only to the case when they exchanged on the aspect of
position. Thus, it determines a wrong intention towards gaining an advantage, which has
considered as a criminal offence in terms of law. In context to the Anti-bribery, law of Saudi,
Article 1 and 2 states that if any public servant receives gifts or rewards for the cause of
performing or not performing, considered as “bribe”. In consideration to the amendments
made, the article described above is applicable to the individuals in the private sector, with the
lower charges. However, before establishment of these amendments in the law, the courts
continued to charge the private sectors, which were involved in the bribery practices, based on
different cases. Furthermore, the employees working in the business organizations are included
or considered as public servants in context to the Anti-bribery law, even prior to these
changes.1
In accordance to the law, it has been analyzed that the code of conduct within
businesses, restricts their employees towards engaging in any bribery acts, and it is applicable
to the public servants. Moreover, it does not allow the exchange or sharing of the gifts with any
of the supervisors, as these may seem as bribes. The law also states that employees need to
become more aware of all the other regulations. In addition, they can communicate about the
issues or acts related with the bribes with the designated departments or official members.
The code of conduct has also established some of the policies or guidelines for the
consideration of exchange or receiving gifts and other entertainment just for the purpose of
some business practice without violating any law. The provisions of the code “Gifts and
Entertainment 2” has stated that the cash, cash equivalent or any other gifts which has the
worth higher than the value of the professional items given to the clients within organization. It
also includes or states the aspect when the value of the gift exceeds than the 500SYR, than will
not be offered to the people. This provision must also include the “Specific Entertainment”,
under which the employees of the organization are disallowed to accept or exchange,
1 Article (8): “the following persons shall be considered public servants: ..4. any person who works for .. companies
partially owned by the government .. “
2 Page 9.
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hospitality or any other entertainments, as it is not consistent with the customs or norms of the
business operations.
It has found that this practice is similar to other state-owned enterprises (which are subject to
the bribery law before this amendment) and their practices followed by them, inclusive of A, B,
C, D, and E. However, there are few differences between the values and conditions or
provisions, which considered desirable.
In the cases of the government officials, who hold high positions in the Kingdom, under the
decision 60 can receive gifts but, below a particular value. The gifts for which they allowed to
receive are only because of some valid cause, and up to a certain worth in order to meet the
objectives stated in the Code of company3. In addition, the gifts allowed under the Sharia law,
to the workers because of their nature of work, upon the aspect of employer’s tolerance levels.
A: The code allows for the exchange of gifts for a reasonable value or less than 500 SYR in
accordance to the conditions when fulfilled, but it does not entertain any kind of bribery within
company. It also states about the gifts exchanged for the reasons, which are other than the
purpose of fulfilling any duty or responsibility. Thus, after gaining an understanding of the law
it has understood that employees must determine and form their own judgments. It also
determines the things to be done ahead, including the supervisors, and ethics and compliance
representatives in accordance to the requirements mentioned in the Code of Conduct4.
Nonetheless, after conducting an analysis of the Code statements, several aspects has
recognized, which were effectively not consistent with the ethics or guidelines mentioned in the
Anti-bribery law. It may also confuse or create ambiguity in the minds of readers while
addressing their duties in compliance to the standards of Code. For an instance, employees
may allow to attend or participate in theatre or sports event, with suppliers, considered as an
essential practice of the business. Moreover, employees receiving special recognition or
reward at any business events are acceptable, in the case when the company does not mention
it; it is included under the category of the Article 3 of the Anti-Bribery law5.
It has mentioned that do not need to report to their superiors. It also mentions about the
process of exchanging or offering gifts, which is included under the usual customs of the
business, which has enlisted in the code of conduct in context to the other enterprises owned
by the state.
C: It has been analyzed that the Code and the related principles are in accordance with the
Anti-Bribery law, even in the case of endorsement of the changes, and do not allow the use of
3 Decision 60, requires reporting … with value of and above .. .
4 The code required an approval from Mangers or VP line in case the value of the gifts (or appears to be) over
500SYR;
5 ” “any public servant who solicits, accepts, or receives a gift or promise as a consideration for performing (or not
performing) any of his duties or as a reward for the same as reward for the same
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bribes through any means. The code makes sure through the compliance that employees are
effective at making own judgments with their senses and in consideration to the laws; and do
not create any harm to the company. In addition, it has been a difficult task to differentiate
between the bribe and gifts in context to an ordinary business organization. Therefore,
employees use their own judgments to comply with the ethical practices of business.
A draft has provided as the suggestion for meeting these objectives, while the current
practices of the company represented in the new draft, and these are covered or enclosed
below in the following points:
1- To report and ensure the efficiency at a higher level, which aligns the aspects or process
to the practices used by the firm.
2- The company uses policies and other procedures, which is associated with the subject
matter in the memo and in other subjects also. Therefore, I will suggest about using the
aspects in context to each item, and maintaining the code for ensuring compliance to
the guidelines.
3- It requires suppliers to comply with the ‘Supplier Code of Conducts’, and the Code refers
to the ethics and other guidelines for the employees, and focus towards the employees,
and match the standard amongst other companies.
4- The gifts must be offered through the aspect of public affairs and must be offered in
compliance to the firm rules and policies.
5- To increase and modify the Arabic version of the draft, and ensure the comparison with
the principles, rules and order of the English version.
6- It also requires accountability for the completion of responsibilities towards
acknowledging gifts with small value and who rejected gifts provided by their suppliers.
This was essential for making the company aware about the intentions and motives of
their suppliers.
7- To state the responsibilities or obligations to be performed in a logical and
understandable manner.
8- It also consists of any of the gifts or benefits received from the family member.
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