Two individuals, a Saudi citizen and a Syrian national, have been sentenced by the Riyadh Criminal Court for their involvement in commercial cover-up, also known as “tasattur”. The Saudi citizen received a six-month prison sentence while the Syrian national was sentenced to two years in prison. In addition to their jail time, they were also fined SR100,000. The Ministry of Commerce stated that the court has ruled to seize and confiscate the funds and proceeds resulting from the cover-up crime, cancel the commercial register and license, and impose zakat, fees, and taxes on the convicts.
After serving his jail term and paying the fine, the Syrian national will be deported from the country. The Saudi citizen, on the other hand, has been banned from engaging in any commercial activity for a period of five years. The verdict of the court will also be published in local newspapers at the convicts’ own expense. The investigation revealed that the Saudi citizen allowed the Syrian national to engage in cover-up business with a market value of SR2 million in the contracting sector in Riyadh. The citizen facilitated the resident’s practice of contracting activities through a firm owned by him.
Commercial cover-up, or “tasattur”, is a practice where a foreign national hides behind a Saudi citizen to conduct business activities in the Kingdom. This is illegal in Saudi Arabia and is considered a form of commercial fraud. The government has been cracking down on this practice in recent years in an effort to protect the local economy and ensure fair competition among businesses. Those found guilty of engaging in commercial cover-up face severe penalties, including imprisonment, fines, deportation, and bans from engaging in commercial activities.
The Riyadh Criminal Court’s decision to sentence the Saudi citizen and Syrian national to jail time and fines sends a strong message that commercial cover-up will not be tolerated in the Kingdom. By seizing and confiscating the funds and proceeds resulting from the crime, as well as cancelling the commercial register and license, the court is taking a firm stance against those who try to circumvent the law for personal gain. Additionally, imposing zakat, fees, and taxes on the convicts will serve as a deterrent to others who may be considering engaging in similar illegal activities.
The deportation of the Syrian national after serving his jail term and paying the fine highlights the seriousness with which Saudi Arabia takes commercial cover-up. The ban on the Saudi citizen from participating in commercial activities for five years serves as a reminder of the consequences of breaking the law. By publishing the court’s verdict in local newspapers at the convicts’ expense, the government is ensuring that the public is aware of the consequences of engaging in illegal activities such as commercial cover-up.
Overall, the Riyadh Criminal Court’s ruling in this case demonstrates the government’s commitment to upholding the law and protecting the local economy from fraudulent practices. It serves as a warning to those who may be tempted to engage in commercial cover-up that they will face severe consequences for their actions. By enforcing strict penalties, such as imprisonment, fines, deportation, and bans from commercial activities, the government is sending a clear message that illegal activities will not be tolerated in the Kingdom.
