In force
Saudi Anti-Concealment Law
نظام مكافحة التستر
The Anti-Concealment Law was approved by Royal Decree No. M/4 dated 1/1/1442 AH. This page presents the official Arabic text of each article with plain-English explanations.
- Articles
- 20
- In force
- 20
- Amended
- 0
- Issued
- 1/1/1442 AH
Issued by: مرسوم ملكي رقم (م/4) وتاريخ 1442/1/1هـ · قرار مجلس الوزراء رقم (785) وتاريخ 1441/12/28هـ.
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Anti-Concealment Law by topic
Definition of Commercial Concealment3 articlesConcealment Offenses and Violations3 articlesPenalty for Commercial Concealment2 articlesConsequences of a Concealment Conviction3 articlesPenalty for Violating the Anti-Concealment Law4 articlesDetecting and Investigating Concealment5 articlesReporting Concealment and Informant Reward3 articlesRegulations and Entry into Force of the Anti-Concealment Law2 articles
Articles of the Saudi Anti-Concealment Law
الفصل الأول: التعريفاتArticles 1–1
الفصل الثاني: الجرائم والمخالفاتArticles 2–4
- Article 2The article defines concealment as an agreement or arrangement through which one person enables a non-Saudi to carry out an economic activity he is not licensed to carry out, using the license of the person concealing.
- Article 3The article sets out four offenses punishable under the Anti-Concealment Law: enabling a non-Saudi, the non-Saudi carrying out the activity, participating in either, and obstructing those charged with enforcing the Law.
- Article 4The article sets out three violations: an establishment giving a non-Saudi tools for absolute control of it, his holding them, and an establishment using a bank account that does not belong to it.
الفصل الثالث: الضبط والتحقيق والمحاكمةArticles 5–8
- Article 5The article divides jurisdiction over concealment cases among the Ministry of Commerce, the Public Prosecution and the criminal court, and creates a committee to review violations of Article 4.
- Article 6The article names the bodies whose employees detect concealment offenses and violations, their inspection, examination and summoning powers, and the confidentiality of detection procedures.
- Article 7The article allows offenses and violations under the Anti-Concealment Law to be proved by all means of proof, including electronic evidence.
- Article 8The article allows the Ministry to request a travel ban on a suspect and allows the Public Prosecution to order precautionary seizure of funds for up to 60 days.
الفصل الرابع: العقوباتArticles 9–16
- Article 9The article punishes concealment offenses with up to 5 years in prison and a fine of up to SAR 5 million, or either, doubles them on repetition, and allows reduction for a person who provides evidence.
- Article 10The article requires confiscation by judicial judgment of the proceeds of the two concealment offenses or their equivalent value, and allows annulment of acts that hinder recovery, protecting good-faith third parties.
- Article 11The article requires publishing a summary of a final conviction for the two concealment offenses, and deporting a convicted non-Saudi and banning his entry into the Kingdom after the judgment is carried out.
- Article 12The article attaches to a concealment conviction dissolution of the establishment, striking off the register, a 5-year commercial ban, and joint recovery of zakat and taxes from the convicted persons.
- Article 13The article allows the criminal court to exempt a participant in a concealment offense from the penalties in Article 9(1) if he reported it before it was discovered and his report led to arrests or seizures.
- Article 14The article punishes Article 4 violations with a fine of up to SAR 500,000, closure of the establishment for up to 90 days, or both, and allows an appeal to the administrative court within 60 days.
- Article 15The article provides that any contract or act whose subject or purpose is concealment is void, without prejudice to the rights of good-faith third parties.
- Article 16The article provides that fines collected under the Anti-Concealment Law are deposited in the Ministry of Finance's current account after deducting the rewards in Article 18.
الفصل الخامس: أحكام ختاميةArticles 17–20
- Article 17The article requires every body that issues licenses for an economic activity to follow up the establishments it has licensed and to report to the Ministry of Commerce any suspicion of concealment offenses or violations.
- Article 18The article protects the confidentiality of informants' identities in concealment cases and grants them a reward of up to 30% of the fine collected if specific conditions are met.
- Article 19The article requires the Minister of Commerce to issue the Implementing Regulations of the Anti-Concealment Law, in agreement with the Minister of Interior, within 180 days of the Law's publication.
- Article 20The article provides that the Law replaces the Anti-Concealment Law of 1425 AH and takes effect 180 days after its publication in the Official Gazette.
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