RIYADH, 30 August 2004 — Saudi Arabia together with other Gulf states will organize a major seminar on commercial fraud and imitation here on Sept. 20 in a joint move to tackle commercial fraud and safeguard the interests of businessmen and corporate houses.
A panel of experts representing the public and private sectors will participate in the event and discuss how to combat commercial fraud and imitation on a regional level.
“Participants of the two-day seminar will review problems faced by the Gulf governments in view of the growing number of fraud cases and the globalization,” said a statement released by the GCC General Secretariat here.
The event will be organized by Riyadh Chamber of Commerce and Industry (RCCI) in cooperation with GCC General Secretariat and Federation of GCC Chambers of Commerce and Industry.
Saudi Arabia has already stepped up its efforts to check commercial fraud and imitation. The Kingdom also imposes severe punishment on those involved in it. Moreover, the financial authorities in the Kingdom have urged companies, traders and banks to inform them of fraud cases or of suspicious dealings that would lead to money laundering. But despite all efforts, cases of commercial fraud involving Saudis and expatriates have increased with at least one case reported every week.
The Council of Saudi Chambers of Commerce and Industry (CSCCI) has directed all chambers to combat commercial fraud and money laundering. In one instance recently, the Commercial Fraud Committee seized a consignment of about 1.7 million fake wrist watches meant for 32 local establishments. The watches were being transported by land from Dubai.
Also, anti-fraud squads from the Commerce Ministry recently seized large quantities of imitation spare parts for American cars from a warehouse in Riyadh.
The inspectors of the ministry’s department dealing with commercial fraud also discovered several boxes of printed labels. In another search, inspectors seized from a press several printing plates for well-known brands and CDs.
The GCC seminar will primarily discuss how to place deterrent laws and regulations to check fraud and imitation. The seminar will also review the regulations of the World Trade Organization (WTO) and the role private and public sectors can play in combating fraud and imitation. The seminar will seek views of various government agencies, private institutions and Gulf businessmen about the problem.
The participants will also discuss forgery of trade marks and imitation. A statement published recently by the director of the Ministry of Commerce’s office in Jeddah said 638 cases of trade mark forgeries were reported last year alone. It shows the present system is inadequate to deter violators and clear the market of dubious practices. Some south Asian markets, which specialize in providing forged and imitation products, have been dumping them in the Gulf states.
