A Saudi court has issued a final verdict fining a Saudi citizen and a Bangladeshi expatriate a total of SR45,000 after they were convicted of illegal commercial cover-up, the kingdom’s Ministry of Commerce has reported.
The Saudi man was found guilty of illegally assisting the foreign resident in running a business that repaired refrigeration and air-conditioning equipment in Riyadh, in violation of the Kingdom’s laws.
The ministry also confirmed that it had seized material evidence showing the citizen had enabled the expatriate to engage in commercial activity through his private establishment, despite the expat not having a foreign investor license.
As a result, the expatriate’s financial transactions increased in a manner inconsistent with his role as a sales representative, and the profits from his illegal business were transferred outside Saudi Arabia.
The ministry published the court ruling, which includes fines for both defendants, the cancellation of the commercial registration, the revocation of the business license, liquidation of the illegal business, and a ban on the Saudi individual from engaging in any future commercial activity.
The court has also ordered the expatriate’s deportation from the Kingdom, with a permanent ban from returning for work.
Saudi authorities recently launched an electronic service allowing commercial institutions to report commercial cover-ups by their counterparts, aiming to improve market regulation and reduce illegal activity.
Previously, reporting on commercial cover-up cases was limited to individuals and consumers.
Violation of the anti-commercial cover-up law in Saudi Arabia can result in up to five years of imprisonment, fines up to SR5 million, and the confiscation of illicit funds after a final court ruling.
In 2019, Saudi Arabia established the National Programme to Combat Commercial Cover-Up, with support from various state institutions, including the ministries of human resources and municipalities.
