Confirmed Imposing Strict Penalties against Violators
MCI has warned the investors of violating Anti-Commercial Concealment Law in the Kingdom, which is to enable the non-Saudi of working for his own account through exploiting and using the Saudi`s name, Commercial Registration, license, or by taking a lump sum against that, or by any other way. The Ministry explained that a foreign investor who has got a license and who is authorized to exercise any commercial activity and who enables the non-Saudi of working for his own account will be included within the concealment act. MCI has reaffirmed its determination to punish those involved in implementation of the provisions of Anti-Commercial Concealment Law, pointing out that it has detected and revealed a number of violating issues that have been referred to the Bureau of Investigation and Public Prosecution Authority, which is carrying out the necessary investigation and legal accountability before referring such cases to the Board of Grievances for giving the final judgment.
The Ministry warned the companies and institutions regarding the consequences of committing a violation of Anti- Commercial Concealment Law, showing that it had monitored several cases of concealment, like revealing a contract for establishing a Co. stating the ratio in shares and registered in the Commercial Registration, which looks right apparently, while it had been discovered later that one party is involved in concealment, as seen later through secret contracts, organizing the relationship among the concealment parties. This is a clear proof and an avowal of violating the Anti-Commercial Concealment Law in force in the Kingdom.
MCI warned all companies, institutions and individuals of cooperating with violators of the Rules & Regulations of the Kingdom, which may expose them to legal accountability and statutory penalties. The Ministry aims to reduce the phenomenon of Anti-Commercial Concealment, to create an official and regular trading environment, free of violations and to enable the citizens of working in business without problems.
MCI had announced earlier the start of taking tough and strict procedures regarding the application of penalties issued against violators of the Anti-Commercial Concealment Law, which contains a number of deterrent penalties against those involved. This procedure comes after monitoring and detecting the violating cases by MCI and the application of Anti-Commercial Concealment Law and penalties against the violators, which may reach to imprisonment for two years and a fine of one million riyals for each violator, as well as defaming the names of offenders in local newspapers at their expense, also stopping the activity and abolishing the Commercial Registration, liquidation of business and deporting the non-Saudis from the Kingdom.
The Ministry showed the mechanism of concealment notification procedures, which include several steps: First, carrying out the necessary inquiry and investigation, then making inspection and detection, hearing the statements of the suspects and finally, imposing penalties against violators.
Concealment is defined as the non-Saudi works for his own account through the empowerment of a Saudi citizen or a foreign investor, whether through the use of his name, license, C.R. or in any other way, which is contrary to the said law, where the first Article reads: (The non- Saudi should not exercise or invest in any unlicensed activity under any circumstances, as per the Foreign Investment Law or other laws, regulations and decisions. Anyone, who enables the non-Saudi of investing in any prohibited activity, will be considered doing an act of concealment, whether through the use of his name, license, C.R., or in any other way).