In April of this year, a total of 117 individuals were arrested in Saudi Arabia for their suspected involvement in commercial cover-up crimes. These individuals were apprehended in various regions of the Kingdom and were referred to the competent authorities to face legal action. The arrests were made by inspectors from the National Program to Combat Commercial Concealment, a department under the Ministry of Commerce. These inspectors conducted 6,663 inspection tours across the country with the aim of combating commercial cover-up activities.
The inspections targeted a variety of businesses, including restaurants, car services, men’s salons, and construction offices, among others. During these visits, 117 cases of suspected cover-up were identified, and the violators were promptly referred to the authorities for further investigation and the imposition of penalties. Under the Anti-Concealment Law, individuals found guilty of commercial cover-up can face imprisonment for up to five years, a fine of up to SR5 million, and the confiscation of any illegal proceeds obtained through the cover-up activities.
In addition to these penalties, the law also allows for the closure of the establishment, the liquidation of the business, the removal of the business from the commercial register, and the prevention of the individual from engaging in future commercial activities. Other consequences may include the collection of zakat, fees, and taxes, defamation, deportation for foreign individuals involved in the cover-up, and a ban on returning to the Kingdom on job visas. These strict penalties are aimed at deterring individuals from engaging in illegal commercial activities and protecting the integrity of the business environment in Saudi Arabia.
The crackdown on commercial cover-up activities is part of the government’s efforts to promote transparency and combat illegal business practices in the Kingdom. Commercial cover-up, or tasattur, refers to the practice of concealing the true ownership of a business by using Saudi nationals as figureheads. This practice allows foreign individuals to operate businesses in sectors where foreign ownership is restricted or prohibited. By cracking down on commercial cover-up, the government aims to protect the rights of Saudi citizens, ensure fair competition in the market, and promote a level playing field for all businesses operating in the Kingdom.
The Ministry of Commerce and the National Program to Combat Commercial Concealment have been actively working to identify and penalize individuals involved in commercial cover-up activities. Through regular inspection tours and targeted enforcement efforts, they aim to root out this illegal practice and hold violators accountable for their actions. By imposing strict penalties on those found guilty of commercial cover-up, the government sends a clear message that illegal business practices will not be tolerated in Saudi Arabia.
In conclusion, the recent arrests of individuals involved in commercial cover-up activities in Saudi Arabia demonstrate the government’s commitment to promoting transparency, integrity, and fair competition in the business environment. The strict penalties imposed on violators serve as a deterrent to those considering engaging in illegal activities, while also sending a clear message that the rule of law will be upheld. By cracking down on commercial cover-up, the government aims to protect the rights of Saudi citizens, promote a level playing field for businesses, and maintain the integrity of the market.
