RIYADH: In a major inspection by the Ministry of Commerce and Industry (MCI), owners of 73 of the 1,000 gold and jewelry shops visited by officials have been cited under the anti-commercial concealment law.

According to an official from the Ministry of Commerce and Industry, more than 1,000 gold and jewelry shops were inspected Kingdomwide to ensure that they are working in accordance with the law. "We have summoned the owners of 73 shops on suspicion of alleged violation of regulations under the anti-commercial concealment law.”

The cases will be referred to the Bureau of Investigation and Public Prosecution, and then to the Board of Grievances which will issue a final verdict.

Earlier this year, the MCI announced that those found guilty under the anti-commercial concealment law will be subject to a maximum punishment of two years in jail and a maximum fine of SR1 million. If the violator is a non-Saudi, he will be deported. A Saudi violator will be prohibited from doing business for five years.

The inspections have found a number of violations in gold and jewelry shops, including the absence of valid commercial registration and the lack of a specific license for selling precious metals. In addition to these violations, MCI officials have found a number of illegal workers in some of the shops.

The MCI has warned investors against violating the Anti-Commercial Concealment Law. The law aims to prevent a non-Saudi from managing a business by using a Saudi’s name, commercial registration license or by taking a lump sum from the Saudi.

The ministry explained that a foreign investor with a license who is authorized to carry on any commercial activity and who enables a non-Saudi to work for his own account is included within the concealment act. The MCI has reaffirmed its determination to punish those involved in violating the Anti-Commercial Concealment Law.