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Ministry of Commerce identifies 7 types of tasattur activities

RIYADH, SAUDI ARABIA

The Ministry of Commerce, Saudi Arabia advised business owners and commercial establishments to make use of the extended six month period to correct the violations of the Anti-Commercial Cover-up Law (Tasattur).

The ministry identified seven types of tasattur and the penalty for the crime includes a maximum of five years in prison and SR5 million in fine.

Types of TasatturDescription
Monthly/Annual payment to ownerNon-Saudi worker of the commercial establishment pays its owner a monthly or annual lump sum amount.
Fund ManagementThe non-Saudi worker manages transactions of the establishment’s funds through bank deposits, cash payments or money transfer within the Kingdom and outside.
Document HandlingThe non-Saudi worker keeps in his possession blank documents, checks and contracts duly signed by the owner of an establishment.
Unofficial PartnershipExistence of a partnership between the owner of the establishment and non-Saudi worker who does not have an investment license
DividendEndorsing a non-Saudi who does not have a foreign investment license, to have a stake in the dividends that are meant to be distributed to the partners of the company and allowing the non-Saudi to determine the mechanism of distribution
Personal Account TransactionsThe entry of the establishment’s revenues and profits directly into the personal account of a non-Saudi and not in the establishment’s account.
IntermediariesHiring of brokers or intermediaries by the establishment’s owner using his commercial register to conclude contracts with other parties or individuals.

The ministry called on the business owners to take advantage of the corrective period for violators of the law before the end of its deadline on Feb. 16, 2022 via the ministry’s website mc.gov.sa. The deadline was earlier extended from August 23, 2021.

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