The New Anti-Commercial Concealment Law Stipulates the Confiscation of the illegal funds of those Committing the Crime of Commercial Cover-up after the issuance of a Final Judicial Ruling against them

24 Aug 2020

​​The New Anti-Commercial Concealment Law stipulates the confiscation of the illegal funds arising or obtained directly or indirectly from committing the crime of the commercial concealment, regardless, or whether they are in the possession or under the control of the defendant or with any other party. This is In accordance with Article 10 of the New Law.

The new law confirms that in the event the illegal funds, subject of the cover-up activities, cannot be confiscated or they are mixed with funds acquired from legitimate sources, or their location cannot be specified, then any other assets, similar to the value of the illegal funds, shall be confiscated by a court ruling.

The New Anti-Commercial Concealment Law also stipulates that the Public Prosecution, on its own initiative or at the request of the criminal investigation officers, and upon the suspicion of any cover-up crime, may order the precautionary seizure for a period not exceeding 60 days, on the funds that may become subject to confiscation later. 

The verdict shall be issued, executed and the concerned party shall be notified. The period can be extended by a judicial order. The Ministry of Commerce may request the Public Prosecution to prevent the travel of those suspected of committing any of the crimes stipulated in the new law.

It should be noted that the new Anti-Commercial Concealment Law, which was recently approved by the Council of Ministers, is based on mechanisms that contribute to eliminate the sources of commercial concealment and to put an end to the shadow economy.

The New Law includes heavy penalties, such as five-year imprisonment, a fine of up to five million riyals, the seizure and confiscation of the illegal funds of the violators after the issuance of a final court ruling against them.

In addition to other penalties, including the closure of the facility subject of the cover-up crime, liquidating the trade activity, writing off the commercial registration, preventing the convicted person from practicing any economic activity for a period of five years, deporting the non-Saudi convict from the Kingdom and not to be allowed to return for work.

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Last Modified 24 Aug 2020