المملكة: Trade: 80 thousand riyals in progressive fines for violators of disclosing the true beneficiary

This comes with the imposition of progressive financial fines in the event that the violation is not corrected within the regulatory period, based on the powers granted to him under the companies’ system and the rules of the true beneficiary, and based on what is required by the public interest.

Initial warning and a period for correction

The decision stipulated in its first article that a warning be issued to anyone who commits a violation of not disclosing the true beneficiary’s data, or Violation of not submitting the annual confirmation of these data for the first time, with a period of thirty days to correct the violation starting from the day following the date of the warning.

The decision confirmed that if the violation is not corrected within the specified period, a direct penalty will be imposed on every company that did not commit to disclosing the data of the true beneficiary or did not submit the annual confirmation within the prescribed period in accordance with the rules of the true beneficiary.

Fines according to capital

The decision specified the fines. The financial fines imposed on all forms of companies according to capital are as follows:

A fine of 4,000 riyals is imposed on companies whose capital is less than 500,000 Saudi riyals, and the fine amounts to 20,000 riyals on companies whose capital ranges from 500,000 Saudi riyals to 2.5 million Saudi riyals.

A fine of 40,000 riyals is applied to companies whose capital exceeds 2.5 million riyals. Saudi riyals and up to 5 million Saudi riyals. As for companies whose capital exceeds 5 million Saudi riyals, a fine of 80 thousand riyals will be imposed on them.

The fine is doubled upon repetition

The decision stressed in its third article that in the event of a repeated violation of not submitting the annual confirmation of the true beneficiary’s information within the specified period for the following year, and after the previous violation decision becomes final, the fine imposed for the previous violation will be doubled, provided that the total fines do not exceed the amount of 500. One thousand Saudi riyals.

The decision clarified that the mechanism for notification of the direct penalty decision is carried out in accordance with the mechanism stipulated in Article Ninety-Four of the Executive Regulations of the Companies Law.