MCI, Defaming a Citizen and an Expat Condemned of the Crime of Commercial Concealment in Riyadh

04 Apr 2019


The Ministry of Commerce and Investment has defamed a citizen and an Expat of Bangladeshi nationality, after a judicial ruling condemning them for commercial concealment. It has been proved that the citizen is enabling the expat to practice commercial activity by using the citizen commercial register and by working for his own account in the field of contracting in Riyadh.

The sentence issued by the Criminal Court in Riyadh included a fine on the violators, the closure of the Est., liquidation of the trade activity, cancellation of the license, writing off the C.R., prohibiting 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, as well as defamation by publishing the verdict in a local newspaper at the expense of the violators.
In details, MCI inspection teams seized fake paint at an Est. for contracting in Riyadh. This leads to the disclosure of a commercial concealment case. Evidences and documents are seized, showing that the expat, who was working at the Est. as a painter, with a monthly salary of SR 1200, is actually working for his own account and making large financial transactions. He used to employ labors and provide accommodation for them, and giving them salaries, also renting the shop, where the fake paint was detected.

Therefore, the results of the investigations showed that the citizen has been enabling the expat to practice a trade activity, he is not allowed or licensed to practice. Accordingly, the case was referred to the judicial authority 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 has approved recently the implementation of 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 07 Apr 2019