The Ministry of Commerce has recently affirmed that allowing a non-Saudi individual to operate using the name, license, or commercial register of a Saudi or investor constitutes commercial cover-up (tasattur).

Commercial Cover-Up Explained

According to the Ministry, commercial cover-up involves non-Saudi individuals using the commercial registration of a Saudi or another investor to conduct business. This practice is illegal and falls under the scope of the Anti-Concealment Law.

Whistleblower Rewards

In an effort to combat this illegal activity, the Ministry has introduced a reward system for whistleblowers. Citizens and residents who report cases of commercial cover-up can receive up to 30% of the total fines imposed by the court or competent authority. This reward is granted upon providing substantial evidence and collection of fines, which can reach up to SR1 million per violator.

Anti-Concealment Law

The Anti-Concealment Law is a critical measure in Saudi Arabia aimed at ensuring transparency and legal compliance in commercial activities. It addresses various forms of cover-up and establishes severe penalties for those involved.