The Ministry of Commerce, the Ministry of Human Resources and Zakat and Income Authority Carry out a Joint Inspection Campaign on the Workshops and Outlets Selling Precious Metals & Gemstones

22 Oct 2020


MC inspection teams, in cooperation with the Ministry of Human Resources and Social Development and the General Authority for Zakat and Income have carried out a joint inspection campaign targeting the precious metals and gemstones (gold and jewelry) shops and workshops in Riyadh, in order to verify the regularity of such establishments and their work. The campaign resulted in visiting 50 establishments and closing 4 shops in violation.

The joint inspection campaign of the three authorities seized a number of violations, such as practicing the trade activity without a license, or the expiration of the licenses, the absence of the manufacturer or importer’s stamp "Trademark", which should be printed on the exhibited artifacts, violations in the purchase invoices, in addition to employing illegal labors, as well as violations related to VAT.

The Ministry of Commerce, the Ministry of Human Resources and Social Development and the General Authority for Zakat and Income continue to implement joint inspection rounds in all regions of the Kingdom, targeting factories, workshops, wholesalers, importers and shops of precious metals and gemstones.

These joint inspection tours aim to ensure the regularity of commercial establishments business, engaged in the activities of precious metals and gemstones, and to control crimes and violations related to commercial concealment and money laundering, as well as the cases of non-reporting about suspicious transactions, also not keeping records and invoices for sales and purchases of jewelry for a period of 10 years, in accordance with the Precious Metals and Gem Stones Law.

The joint inspection campaign also aims to verify the existence of valid licenses for the stores practicing such activity, also to ensure the presence of a "Trademark" stamp, and to control fraud or deception related to violations in precious metals and gemstones, in addition to taking samples from the artifacts to ensure their quality, as well as verifying gold calibrations, and making sure of granting consumers the purchase invoices or lack of their data, verifying as well that the addresses of establishments are not changed without consent, also not selling the used jewelry without disclosure, and that artifacts are not sold outside the shop.

Notably, the Precious Metals and Gemstones Law and its implementing regulations stipulate imposing a number of penalties against the violations of precious metals and gemstones, as it required a prison sentence of not more than two years and a fine not exceeding SR 400 thousand riyals against anyone who deceives or manipulates in the type, weight or caliber of precious metals, coated artifacts, inlaid, or clad with them, or the one who deceits or manipulates in the type, weight, or quality of the precious metal or gemstones.

Violators shall also be subject to imprisonment for a period not exceeding six months and a fine not exceeding ninety thousand riyals, or by either of them, against anyone who practices the trade or manufactures precious metals or gemstones and their artifacts without a license, and a fine not exceeding two hundred thousand riyals against whoever commits another violation related to the provisions of the Precious Metals & Gemstones Law and its Implementing Regulations.

The Ministry of Commerce urges all consumers to report violations and lodge complaints against precious metals and gemstones shops through MC Consumer Call Center (1900), or through the application of a Commercial Violation Report, or via the Ministry’s website. The Ministry of Human Resources also calls for reporting any violations related to illegal employment through HR Report Center, via the number (19911), while Zakat and Income Authority receives reports about (VAT) violations through the No. (19993).

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Last Modified 24 Oct 2020