RIYADH: A dud check presented by an expatriate businessman has led to the detection of severe violation of Ant-Commercial Concealment Law in Al-Jouf region, the Ministry of Commerce and Industry announced on Thursday.

An Arab expatriate has issued a check in settlement of penalty for a commercial dispute in the Dawmat Al-Jandal province in Al-Jouf.

After being informed by the bank that there were no funds for the issued check, the inspection team at the MCI had gone into the business details of the company which issued the check and found that there was a gross violation of the Kingdom’s Ant-Commercial Concealment Law.

On investigation, the MCI officials found the documents and physical evidences which proved that two Asian expatriates were running the establishment, aided by a citizen, who helped them carry out his businesses by using his name and his Commercial Registration against a payment of a monthly lump sum.

Describing it as a violation under the Anti-Commercial Concealment Law, the authorities have referred the case to the Bureau of Investigations and Public Prosecution Authority, and subsequently be referred to the Bureau of Grievances to issue a final judgment in this case.

According to preliminary investigations, it turned out that the two expatriates were running the Furniture Establishment, valued at more than SR3 million. Upon inspecting the site, a number of documents and official papers were detected, proving illegal foreign remittance by the two expatriates.

Moreover, magic talismans were also in possession of the two men and that matter has been referred to the Commission of Promoting Virtue & Prevention of Vice for necessary action.

If found guilty, the violators are subject to a maximum of two years imprisonment and SR1 million fine in cash. The commercial license of the party could be suspended for five years and the convicted expatriate will be deported on finishing the jail term.

During the inspection of the site, MCI inspectors found a number of documents and papers, proving that the two expatriates were managing the showrooms as if they were the real owners and they were operating the bank accounts too.

According to the Anti-Commercial Concealment System, every Saudi citizen or a foreign investor, who enables a non-Saudi of doing business for his own account would be considered a violator, whether through using the trade name, license or Commercial Registration or any other way.

The first article of the Anti-Commercial Concealment System states that It is not permissible for non-Saudi in all cases, to exercise or invest in any activity, if he is not authorized to exercise or invest under the Foreign Investment Law or other Systems, Regulations and decrees.

MCI would like to emphasize its warning to all companies, institutions and individuals to avoid cooperating with the violators of the systems and laws in the Kingdom. Otherwise, they would be accountable to legal and statutory penalties.

The MCI aims to reduce the phenomenon of Commercial Concealment and to create a regular and free of irregularities trading environment, and to enable the citizens to do business safely.

It also urged citizens to report cases of Commercial Concealment with substantial proof, as the Ministry grants a financial reward to the informant , who reports against Commercial Concealment, with an amount not exceeding to 30 percent of the value of the fines collected .

Informants can dial the ministry’s toll free number 1900 or contact the concerned department of the ministry by fax or e-mail.

In the light of such issues, the MCI recently released a statement warning all companies, commercial institutions and individuals not to cooperate with violators of commercial rules and regulations in the Kingdom.