Trade: 500 riyals immediate penalty for concealing data "The real beneficiary"
This official move comes to strengthen the tools of control and supervision, as the ministry seeks through the upcoming decision to ensure full compliance with the rules of the true beneficiary, and to achieve the principle of justice in imposing penalties on establishments that fail to provide their essential information within the specified statutory periods.
A fine of 500 riyals
The draft decision set the value of the direct financial fine at 500 riyals, to be automatically imposed on any company proven to have failed to disclose the identity of the real beneficiary, or to be late in submitting the annual data confirmation, which places companies in front of a direct legal responsibility that requires accuracy and speed in compliance.The project was not satisfied with imposing The basic fine, but its provisions included a mechanism to “intensify the penalty” to deter continuing violations, as it stipulated that the value of the fine be increased by 50% in the event of a repeated violation of failure to submit the annual confirmation during the year following the issuance of a previous penalty decision that became final.
Reporting mechanism
The Ministry explained that the reporting mechanism is Violating companies The penalty decisions will be made in accordance with the procedures stipulated in Article “94” of the Executive Regulations of the Companies Law, in order to ensure that notification is received in a proper and systematic manner, and to confirm the clarity of the procedural path that will be taken by the regulatory authorities.The Ministry called on the public and those interested in the commercial sector to express their opinions on the draft decision currently presented for public discussion, before adopting it in its final form, stressing that the ultimate goal is to create a business environment. Fair and free from practices that may harm the competitiveness and fairness of the market.
