Saudi Arabia Ministry Launches Service for Companies to Report Commercial Cover-Ups

The Ministry of Commerce has recently introduced a new service that allows businesses to report cases of commercial cover-up (tasattur) involving other establishments through the ministry’s official website.

This initiative is part of the National Anti-Commercial Concealment Program's efforts to enhance compliance with market regulations and reduce the occurrence of cover-ups in the Kingdom.

The Federation of Saudi Chambers issued a circular to all chambers of commerce across the Kingdom, informing them about this new service.

The circular emphasised the importance of educating private sector firms on how to utilise the service, noting that a dedicated page has been created for stakeholders to learn about the reporting methods. The service is currently in its experimental phase.

The Ministry of Commerce has outlined the necessary documentation for submitting a report, including commercial registry data, national identity information for Saudis and GCC citizens, resident identity data for non-Saudis, or passport information.

Additionally, details of the establishment being reported and supporting documents must be provided.

To submit a report, users must log in through the Ministry of Commerce system or the Nafath unified national portal, enter the relevant details of the reporting establishment, and submit the request.

The Ministry of Commerce reiterated in a recent report that enabling a non-Saudi to operate under the name, licence, or commercial registry of a Saudi or foreign investor constitutes a commercial cover-up. Reports of this nature are accepted under the category of "commercial cover-up."

It was previously announced that citizens and residents who report cases of commercial cover-up may receive a financial reward of up to 30 per cent of the total value of the fines imposed.
This reward will be granted immediately upon providing evidence that proves the cover-up.

Under the Anti-Concealment Law, a fine of SR1 million will be imposed for each violation.

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