Commercial cover-up in Buraidah: Imprisonment and public shaming of an Afghan resident
The Saudi Ministry of Commerce announced that it had publicly shamed an Afghan resident in the city of Buraidah, following a final court ruling convicting him of committing the crime of commercial concealment in the restaurant sector, in a move that confirms the ministry’s determination to move forward in combating this phenomenon that harms the national economy.
Details of the ruling and the penalties issued
The Ministry published the text of the verdict issued by the Criminal Court in Riyadh, which included deterrent penalties for the convicted individual. These penalties included a four-month prison sentence, a fine of ten thousand riyals, and the most severe punishment of permanently deporting the person who facilitated the illegal activity from the Kingdom of Saudi Arabia after serving his sentence, prohibiting him from returning to the Kingdom for work, and requiring him to publish the verdict in a local newspaper at his own expense.
Physical evidence and nature of the violation
Investigations conducted by oversight teams revealed compelling physical evidence proving the expatriate's involvement in managing the establishment as if he were its true owner. He was found to have performed tasks exceeding the authority of a legal employee, such as procuring goods, paying rent, disbursing employee salaries, collecting business revenues, and transferring the proceeds outside the Kingdom—a clear violation of the anti-concealment law.
The National Anti-Concealment Program: A Broader Context
This operation is part of the intensive efforts undertaken by the National Program to Combat Commercial Concealment, in which several government agencies participate. This program aims to eliminate the shadow economy, prevent the outflow of funds abroad, and ensure fair competition in the Saudi market. Commercial concealment is a crime that negatively impacts the growth of the private sector and hinders citizens and entrepreneurs from investing in a healthy and competitive environment.
Regulatory sanctions and their economic effects
It is worth noting that the new anti-concealment law in Saudi Arabia has increased penalties to ensure both general and specific deterrence. The law stipulates penalties of up to five years imprisonment, fines of up to five million riyals, and the confiscation of illicit funds after final court rulings.
These crimes also entail consequential penalties, including the dissolution of the involved establishment, cancellation of the commercial registration, cancellation of licenses, and preventing the cover-up (citizen) from engaging in commercial activity for a period of five years, which reflects the state’s seriousness in protecting its economic assets and correcting market conditions.
