MCI, Defaming a Gulf Citizen and Two Expats Convicted of the Crime of Commercial Concealment

21 Mar 2019

The Ministry of Commerce and Investment has defamed an Emirati citizen and two expats of Palestinian and Jordanian nationality condemned of commercial concealment as per the judicial ruling. It has been proved that the Emirati investor has been enabling the two expats of practicing unauthorized trade activity for their own accounts, through working in retail and wholesale company, selling computers in Riyadh. 

The judicial ruling issued by the Criminal Court in Riyadh imposed a fine of SR 600.000 on the violators, closure of the facility, liquidation of the trade activity, cancellation of the license, writing off the C.R., deporting the expats from the Kingdom, and not to be allowed to return for work, besides defamation by publishing the verdict in a local newspaper at the expense of the violators.
In details, MCI received a tip about a suspected case of commercial concealment at the said Est.. After carrying out the necessary investigation and seizing evidences and documents, it was proved that the Gulf investor had been covering up the two expats and allowing them to use his C.R. and work for their own accounts in the field of computer and I.T. activity. They used to run the Est. by themselves, while the Emirati citizen had been abroad. Therefore, the three violators were referred to the Public Prosecution, and then to the  judicial authority, and a verdict had been issued in accordance with the Anti-Commercial Concealment Law. 
Meanwhile, MCI warns all companies, institutions and foreign investors in the Kingdom, who have licenses to engage and invest in commercial activities, against violating the Anti-Commercial Concealment Law, and to avoid enabling non-Saudis to work for their own accounts. In addition, MCI is stressing taking stern measures, imposing the legal penalties and arresting those violating 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 28 Mar 2019