Anti-Concealment Law

Purpose and scope

• Combats commercial concealment: an agreement or arrangement enabling a non-Saudi to carry on economic activity in the Kingdom for his own account without a licence (Article 2).
• It replaced the previous Anti-Concealment Law; the Ministry of Commerce monitors, receives reports and detects crimes and violations (Articles 5 and 20).

Key rules, rights and obligations

• Crime: enabling a non-Saudi to carry on, for his own account, an economic activity he is not licensed for, including letting him use one's name, licence or commercial registration, and the non-Saudi's carrying on that activity (Article 3).
• Violation: a business irregularly giving a non-Saudi tools for absolute control over it, such as unrestricted signing on accounts, or his holding such tools (Article 4).
• Crimes and violations may be proved by all means of proof (Article 7), and any contract or act whose subject or purpose is concealment is void (Article 15).
• The identity of informants is kept confidential, and they may be paid a reward (Article 18).

Violations, penalties and common problems

• Concealment crimes: up to five years' imprisonment and a fine of up to SAR 5 million, or either (Article 9).
• Confiscation of the proceeds by court judgment even if held by others, subject to good-faith rights (Article 10); publication of the judgment; and deportation and entry ban for a convicted non-Saudi (Article 11).
• Dissolution of the business, cancellation of its commercial registration, a five-year ban on the convicted person from that activity and any commercial work, and joint liability for zakat, taxes and fees (Article 12).
• Article 4 violations: a fine of up to SAR 500,000 and closure for up to ninety days, or either, with a possible order to submit financial statements, bank statements and payroll to the Ministry for up to five years (Article 14).
• The court may exempt an offender who reports the crime before it is discovered if this leads to arrests or seizure of funds (Article 13).

Procedures and key deadlines

• A penalty decision for a violation may be challenged before the administrative court within sixty days of notification (Article 14).
• The Ministry may ask the Public Prosecution to impose a travel ban on a suspect, and the prosecution may seek precautionary seizure of funds (Article 8).
• Business owners should regularise their position through a lawful partnership or investment licence instead of informal arrangements with workers.

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.