Judicial Applications & Case Law

Frauds Involving Banking Instruments

Fraud in banking instruments involves changing underlying facts with a criminal  intention to cause damage[*1]. Forgery is a very serious crime. In this context,  the Court sentenced Defendants I and II  who engaged in forging a banking instrument, represented  in  the form of bank power of attorney, bearing Defendant I’s  name and particulars, including statements of a client from whose account monies were withdrawn without his knowledge.

The Court based its condemnation on the admission made by Defendant I,  establishing validity of the fraud attributed to him by paying Twenty Thousand SAR to Defendant II to facilitate the passing of the forged instrument. The Court rejected the defense raised by Defendant II that he failed to authenticate the client’s signature by means of a scanner, relying instead on his faith in Defendant I.  This contravened standard banking practices to authenticate genuineness of the signature before completing the banking transaction in accordance with the precautionary measures. Defendant II further provided contradictory statements in describing his relationship with Defendant I. The Court based its judgment on the facts contained within the case file and rendered a discretionary judgment sentencing Defendant I on the forgery and falsification crime to sixteen (16) months’ imprisonment and sentencing Defendant II for the crime of bribery and imposing eighteen (18) months’ imprisonment and a fine of Thirty Thousand Riyals. (Please refer to the first instance case no. 614/9/ for the year 1432H, hearing 23/12/1432H, reference Criminal Judgements & Principles, 1432H, Volume I, Board of Grievances, Riyadh, 1436H, page 264)    


[*1] Law Lexicon, Academy of Arabic Language in Cairo 1420H-1999G, page  29.