The Anti-Concealment Law in the Kingdom of Saudi Arabia is a set of legal regulations governing all aspects related to concealment, including its definition and the entity responsible for imposing penalties on violators. It was issued on August 20, 2020, with the aim of combating concealment crimes in the Kingdom.
Definition of concealment in the Anti-Concealment Law
The law defines concealment as an agreement or arrangement through which a person enables another non-Saudi individual to engage in economic activity in the Kingdom that they are not licensed to practice, using the license or approval issued to the concealer.
The Anti-Concealment Law specifies the crimes related to concealment that are subject to penalties. These include a person enabling a non-Saudi to engage in an economic activity in the Kingdom for their own benefit without being licensed to do so. This includes allowing the non-Saudi to use the concealer’s name, license, issued approval, commercial registration, or trade name.
According to the Anti-Concealment Law, it is considered a crime for a Saudi to enable a foreigner to engage in an economic activity for their own benefit without proper authorization. Additionally, it is also a crime to obstruct any individual tasked with enforcing the law from carrying out their duties, such as by withholding information or providing misleading details.
The violations outlined in the Anti-Concealment Law are particularly related to actions involving establishments and their bank accounts. The law specifies that any establishment that grants a non-Saudi, in an unlawful manner, tools or means to exercise complete control over the establishment is in violation of the law and subject to penalties. Similarly, it is a violation for a non-Saudi to unlawfully possess or use tools that give them absolute control over the establishment. Additionally, using a bank account that does not belong to the establishment for its economic activities is also a violation of the law.
Penalties in the Anti-Concealment Law
The Anti-Concealment Law specifies penalties for violators, which can include up to five years of imprisonment, a fine of up to SAR5 million, or both. Additionally, the law mandates the confiscation of illegal assets and funds acquired by individuals involved in concealment crimes.
The Anti-Concealment Law also imposes additional penalties, including the cancellation of commercial registrations, the liquidation of businesses, the revocation of licenses, and a ban on engaging in commercial activities. Furthermore, it enforces the payment of due zakat, fees, and taxes. Non-Saudis involved in the crime are deported from the Kingdom and prohibited from returning for work.
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