MCI, Defaming a Citizen and an Expat Condemned for Commercial Concealment

03 Mar 2019


The Ministry of Commerce and Investment has defamed a citizen and an expat of Bangladesh nationality, after a judicial ruling condemning them for commercial concealment. It has been proved that citizen enables the expat to practice a commercial activity by using the citizen's CR and working for his own account in the field of contracting and selling vegetables and fruits in Riyadh. 

The sentence issued by the Criminal Court in Riyadh includes a five-month imprisonment on the expat, also  a fine of SR 80,000 on the two violators, as well as closing the facility, liquidation of its trade activity, cancellation of the license, writing off the CR, preventing the citizen of practicing the same trade activity, besides deporting the expat from the Kingdom, after the execution of the sentence, and not to be allowed to return for work, in addition to defamation by publishing the ruling in a local newspaper at the expense of the two violators.
In details, MCI receives a tip about a suspected case of commercial concealment. After carrying out the necessary investigation, it has been brought to light that the citizen enables the expat to practice a trade activity for his own account in the field of contracting, selling electrical and plumbing materials, in addition to buying imported vegetables and fruits and distributing them in the Eastern Region markets, on daily basis.
Evidences and documents have been seized, showing that the expat is running the Est. for his own. Therefore, the commercial concealment has been proved, and the case is referred to the concerned authorities for taking the legal measures, in accordance with the Anti-Commercial Concealment law.
The Ministry of Commerce and Investment calls on all citizens and residents in all regions of the Kingdom to report cases of commercial concealment through the Ministry's Consumer Call Center (1900) or through the application of a Commercial Violation Report, or via the Ministry's website. Notably, MCI is granting an award of up to 30% of the total sentenced fines after collection. The fine may reach one million riyals against each violator.
It is worth mentioning that the Royal Supreme Authority approved earlier this week to implement the recommendations of the National Program for Combating the Commercial Concealment, which involves ten government agencies. This program aims to address and combat commercial concealment in all sectors, besides developing relevant regulations and legislations, also stimulating e-commerce and using technical solutions. This program aims as well at regulating and organizing the financial transactions to eliminate transferring of money abroad, as well as enhancing development in the private sector, also creating attractive jobs for Saudis and encouraging them to invest in various trade activities, more over finding solutions to the problem of illegal ownership of foreigners in the private sector.

Last Modified 04 Mar 2019