Within the on-going Efforts of MCI in Detecting the Violators of Anti Commercial Concealment Law, two Expatriates are Caught Running Building Materials Stores in Al-Ahsa

19 Oct 2015
MCI Inspection teams have revealed a commercial concealment case, in construction material stores in Al Ahsa, run by two brothers of Arab nationality. MCI inspectors seized a number of documents and physical evidence, proving the involvement of one citizen in the concealment case through exploiting his trade name and his Commercial Registration versus a percentage of the profits. MCI summoned all the parties to be heard regarding the suspected commercial concealment case, in preparation for referring the case to the Bureau of Investigation and Public Prosecution Authority, and then to be referred to the Bureau of Grievances to issue a final judgment in this case.

The details go back when the Ministry received a notification from a citizen, suspecting a commercial concealment case in a store for selling building materials. Upon inspecting the first and the second neighboring stores, it had been turned out that they belong to the same owner but they were run by expatriates without any supervision or follow up by their official owner, despite being registered in his own name.

During the inspection of the sites, MCI inspectors had found a number of documents and papers, proving that the expatriates were managing the stores as if they were the real owner, and they were working for their own account, this had been proved through what had been detected of business agreements and lease contracts. This is all contrary to the provisions of the Anti-Commercial Concealment Law.

This comes within the keenness and great concern of the Ministry for taking strict measures to implement all penalties issued against violators of the Anti-Commercial Concealment Systems, such as two years' imprisonment, a fine of SR one million for each violator and deporting the non-Saudis from the Kingdom.
It is worth mentioning that the Ministry is conducting defamation of the names of violators   in the local newspapers periodically at their own expense, in addition to other penalties including the closure and liquidation of the commercial activity, writing off the Commercial Registration, and the prevention of exercising the same business for up to five years.

According to the Anti-Commercial Concealment System, every Saudi citizen or a foreign investor enables a non-Saudi of doing business for his own account would be considered a violator, whether through using the trade name, license or Commercial Registration or any other way. The first article of the Anti-Commercial Concealment System stated that It is not permissible for non-Saudi in all cases, to exercise or invest in any activity, he is not authorized to exercise or invest in, under the Foreign Investment Law or other Systems, Regulations and decrees.

MCI would like to emphasize its warning to all companies, institutions and individuals to avoid cooperating with the violators of the systems and laws in the Kingdom. Otherwise, they would be accountable to legal and statutory penalties. MCI aims to reduce the phenomenon of Commercial Concealment and to create a regular and free of irregularities trading environment, and to enable the citizens to do business safely.

MCI also urges all citizens to report cases of Commercial Concealment, if evidences are found, as the Ministry grants a financial reward to the collaborator, who reports against Commercial Concealment, with an amount not exceeding to 30% of the value of the adjudged fines after collection.
Last Modified 26 Dec 2018