Suspicious donations!

Suspicious donation calls disguised as charitable support for poor and needy countries, but deep down they harbor a dubious agenda targeting Saudi Arabia's security and economic interests. These operations are planned by individuals who appear to be "doing good" and play on the simpletons' sympathy to gain their sympathy and encourage them to donate money under the guise of charitable projects such as digging wells, rebuilding destroyed homes, or repairing destroyed roads. However, the money ends up in the hands of extremists adept at manufacturing death, killing, and destruction. The relevant authorities have repeatedly warned against such calls, emphasizing their lack of legislation and official licenses. They have also warned of the danger of such donations, which could find their way to the enemies of the nation.

Watering and well digging tricks!

Legal experts have warned against some entities or individuals collecting donations without obtaining a license from the relevant authorities, stressing that this constitutes a crime. Collecting donations without a license is a violation of regulations, including the Anti-Terrorism and Terrorism Financing Law.

According to attorney Majed Al-Ahmari, suspicious fundraising calls occur periodically, using a variety of methods, including text messages, paper publications, and online social media posts. These practices range from feigning illness to offering to support families, and culminate in the presentation of bank accounts.

Al-Ahmari warns against the practices of some on websites and platforms that rely on providing religious messages urging people to donate, and transferring financial aid to anonymous and unidentified bank account numbers, under the pretext of delivering it to the poor, orphans, and needy, or contributing it to building wells, digging valleys, providing water to the needy, or sending it to aid afflicted peoples, etc.

Lawyer Majed Al-Ahmari added that collecting donations without a license in the Kingdom is a violation of regulations, and those who carry out or respond to such activities are subject to legal accountability. Fines and imprisonment await violators, depending on the type of donations. Such practices negatively impact the efforts of accredited charitable organizations and humanitarian institutions, which are authorized to receive and collect donations, deliver them to those entitled to them, and invest them in various charitable and humanitarian projects under the official umbrella approved by the country.

Attorney Al-Ahmari confirmed the existence of severe and deterrent penalties for those who violate the system, based on the Anti-Terrorism and Its Financing Law. The law exposes anyone who makes donations without a license or complies with it to legal accountability, and the penalty is imprisonment for a period not exceeding 15 years and not less than five years, as stipulated in Article 47 of the Anti-Terrorism Crimes Law.

Terms and Conditions for Donations

Lawyer and legal advisor Obaid Ahmed Al-Ayyafi reiterated that the instructions stipulate that fundraising is limited to Saudi establishments after obtaining a license or permit. He said that the instructions stipulate several requirements for granting an establishment a license to practice fundraising activity, namely: an application submitted through the center’s approved channels, a certificate of registration of the establishment, an approved bank account number for the purpose for which the donation is to be collected, an approved work plan for a fundraising project that clearly states the purpose of collecting the donation in line with the establishment’s objectives, the method, the time period, the category benefiting from the donation, and the targeted donation amount.

Al-Ayyafi explained that the instructions specify methods for collecting donations, including deposits via banking services such as bank transfers, checks, or approved bank accounts for collecting donations, the facility's online store, electronic payment via smart devices, text messages, or the facility's electronic points of sale.

Al-Ayyafi stressed that the system prohibits the licensee from accepting deposits, transfers, or checks coming from outside the Kingdom except after obtaining the approval of the Center and the relevant authorities, or collecting cash donations. This excludes civil society organizations licensed to collect or receive cash donations through their headquarters or branches, or to deliver, present, or disburse donations to any person or entity outside the Kingdom except after obtaining the approval of the Council and the relevant authorities.

Where does the surplus go?

Al-Ayyafi said that donations for specific seasons should be spent during their designated seasons, such as iftar, zakat al-fitr, Eid clothing, and others. Surplus seasonal donations, however, should be redirected to another project after obtaining the center's approval, with the exception of zakat.

The licensee must deposit any surplus seasonal donations allocated for zakat with the General Authority of Zakat, Tax and Customs. Civil society organizations are exempt from this clause. If the surplus cannot be allocated to another project, the licensee shall deposit the surplus amount of seasonal donations in the center’s bank account. The council shall spend it for the purpose for which the donation was made or spend it on charitable causes as it deems appropriate.

He stressed that the system has set a fine ranging from 2,500 to 4,500 riyals, and some of these violations include practicing the activity without a license, practicing the activity with a revoked license, practicing the activity during the license revocation period, practicing the activity for a purpose other than that specified in the license, receiving donations without a permit, and advertising the facility through an intermediary to collect donations without obtaining the center's approval. This fine may increase to five thousand riyals in the event of a repeat violation.

What is the accredited authority?

The Ministry of Interior confirmed, in a statement, that the King Salman Humanitarian Aid and Relief Center is the only entity authorized to receive and deliver donations outside Saudi Arabia. The ministry noted that Saudi society is generous, and that the Kingdom's donation campaigns to aid countries in disasters, along with the Ehsan, Farajat, and Tabar'a platforms, are based on systematic procedures that ensure donations reach their beneficiaries and prevent them from being exploited to undermine security.

The Ministry of Interior stressed that any activities to collect donations in any form will expose the perpetrator to the penalties stipulated by the system, calling for reporting any violation of this by calling (911) in the regions of Riyadh, Makkah Al-Mukarramah and the Eastern Province, and (999) in the rest of the regions of the Kingdom.

Controls for donations abroad

The Presidency of State Security has confirmed that donations within the Kingdom are made through authorized channels and entities. This stems from a commitment to safeguarding charitable work and increasing its sources of income, and to prevent the exploitation of certain entities or individuals by promoting calls and disseminating messages with the intent of soliciting donations and funds from citizens and residents.

The Presidency of State Security clarified that the only entity authorized to deliver donations outside the Kingdom is the King Salman Humanitarian Aid and Relief Center. Violating these instructions exposes donors to accountability under the country's applicable regulations.

Warnings and penalties

During April, the National Center for Non-Profit Sector Development referred 13 commercial entities to the State Security Presidency and one entity to the Public Prosecution. It also referred violations committed by three civil society organizations to the Public Prosecution, issued a decision to dissolve one civil society organization, issued several warnings to civil society organizations, and issued three donation collection violations against individuals.

He pointed out that the executive instructions for the Fundraising Regulations aim to increase the level of oversight over donation programs and regulate high-risk practices, such as money laundering and terrorist financing. They also aim to govern the collection of cash and in-kind donations and increase non-profit organizations' awareness of licensed donation mechanisms and various types of violations.

Bank account verification service

The Saudi Central Bank (SAMA) has launched a service to review bank accounts for individual customers, allowing individuals to verify ownership of personal accounts with local banks via the banks' electronic channels.

The service contributes to enhancing reliability and reducing the risks of suspicious transactions, unauthorized account use, and identity theft, in line with the Central Bank's objectives of supporting the stability of the financial sector and enhancing confidence therein.

This service is a continuation of the efforts of the Central Bank and the banking sector to develop and create value-added services to enhance the safe conduct of electronic financial transactions, such as the account verification service when adding and activating beneficiaries. The Saudi Central Bank is continuously working to develop electronic financial transactions in accordance with international best practices.