MCI, Defaming a Citizen and an Expat Convicted of the Crime of Commercial Concealment. Imposing a Fine of SR 800.000, Closure of the Est., Liquidation of Trade Activity and Writing off the CR

24 Feb 2019
The Ministry of Commerce and Investment has defamed a citizen and an Expat of Egyptian Nationality, following a judicial ruling condemning them for commercial concealment. It has been proved that the citizen enables the expat to practice commercial activity by using the citizen's CR, and working for his own account in the field of stationery and school supplies in Hail.
The Criminal Court in Hail issued a verdict, including a fine of SR 800,000, the closure of the Est., liquidation of the trade activity, cancellation of 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, as well as defamation by publishing the verdict in a local newspaper at the expense of the violators.
MCI has received a tip about a suspected commercial concealment at an Est. specialized in stationery, school supplies and student services in Hail. Evidences have been found showing big financial transactions and remittances done by the expatriate with individuals and institutions in amounts not commensurate with his monthly salary of SR 12,000 and his profession as an accountant.
Accordingly, it has been proved that the citizen has been enabling the expat to engage in a commercial activity which he is not authorized to practice or invest in, and to work for his own account. Therefore, the case was referred to the judicial authority for taking the necessary legal measures, according to 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 25 Feb 2019