[Corporate Finance Law: An Effective Tool for Elimination of Corruptions and Fraud in Saudi Arabian Financial Institutions]

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ACKNOWLEDGEMENT

I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The globalized society has generally become increasingly aware of the advancement witnessed in organized-crime: corruption and related fraudulent acts inclusive, and the resulting debilitating consequences that these have continued to pile against societies' security, peace and general development- fraudulent funds have been used severally to finance terrorism. With a central role in the economy of the middle-east, the kingdom of Saudi Arabia is an attraction for studies on how corporate finance law has been used as an exploratory tool for elimination of corruptions and fraud in local financial institutions of the region. An effective machinery to hunt the ugly menace in Saudi Arabia involves addressing money laundering (ML) and an effective adaptation of corporate-financial-laws by financial institutions. Money laundering makes it possible for criminals/corruption personnel to have an impunity while enjoying their criminal proceeds where as making a jeopardy of the nation's financial-systems' integrity, weakening the financial-institution, and hampering the growth of the economy. This paper establishes an article of agreement that surpassingly entrusts financial institutions with fiduciary responsibilities for prevention of fraudulent transactions and corrupt practices. The banking sector has been drawn out from the stream of financial-institutions and studied under corporate-finance-law as an effective tool for elimination of corruptions and fraud.

Key words: Saudi Arabia; Corporate-Finance-Law; Money-Laundering; Banking Sector

Corporate Finance Law: An Effective Tool for Elimination of Corruptions and Fraud in Saudi Arabian Financial Institutions

Table of Contents

ACKNOWLEDGEMENTii

DECLARATIONiii

ABSTRACTiv

CHAPTER 1: A GENERAL OVERVIEW OF CORPORATE FINANCE LAW1

1.1. The concept of the Corporate Finance Law1

1.2. Mechanisms for implementation of Corporate Finance Law in Saudi Arabian Financial Institutions (3).7

1.3 Review of current litigation8

1.4. Economic or risk analysis of financial institutions in Saudi Arabia.10

CHAPTER 2: LITERATURE REVIEW15

2.1. Theoretical Framework15

2.2. Notion of Corporate Finance Law and Its Use16

2.3. Corporate Finance Law in Saudi Arabia17

2.4. Corruptions and Fraud in Saudi Arabian Financial Institutions20

2.4.2. Maritime Contract Law27

2.5. Effectiveness of Corporate Finance Law in Addressing Corruptions and Fraud in Saudi Arabian Financial Institutions32

2.6. Application of technology to Control of Corruptions and Fraud in Saudi Arabian Financial Institutions33

2.7. Problem Discussion42

2.8. Aims and Objectives43

CHAPTER 3: METHODOLOGY45

3.1. Exploratory Research45

3.2. Research Approach46

3.3. Data Collection46

3.4. Analyzing Data47

CHAPTER 4: FINDINGS AND ANALYSIS48

4.1. Findings48

4.2. Efficiency52

4.3. Reliability53

4.4. Analysis53

CHAPTER 5: DISCUSSION57

5.1. Identified Dimensions of Corporate finance law and its effect on the elimination of corruptions and fraud in Saudi Arabian financial institutions (18).57

5.2. Treatment of administrative corruption from an Islamic ...