Report Commercial Concealment in Saudi Arabia: Steps and Reward

A supplier has dealt with a building materials shop for two years. The commercial registration is in the name of a Saudi citizen nobody ever sees, while a foreign worker negotiates the prices and asks for payment into his personal account. What can the supplier do?

He can report it to the Ministry of Commerce through the «Balagh Tijari» (Commercial Report) app, the reports centre on 1900, the Ministry's website, or its branches. If the crime or violation is proved by a final judgment or decision and the fine is collected, he may be entitled to a reward of up to 30% of the amount collected.

Where do you report commercial concealment in Saudi Arabia?

Article 12 of the Implementing Regulations of the Anti-Concealment Law makes the Ministry of Commerce the authority that receives reports, using a form it prepares, through three channels: the dedicated website or electronic application, the unified number for reports, and the Ministry's branches. In practice the Ministry announces these channels by name: the «Balagh Tijari» app, the reports centre on 1900, and the Ministry's website. Keep the report number and a copy of what you sent.

You are not asked to decide that what you saw is a crime. It is enough to describe what you saw and why you suspect it. But if your dispute with the shop is about a late salary or an unpaid debt, that has its own route, and a concealment report will not get your money back.

What should the report include?

Article 13 of the Implementing Regulations sets out what the report must contain: the place and time of the report; the reporter's name, ID number, address and phone number; the name of the business and the suspected persons, with a clear description of the place and the facts; and then the information or documents that can be used to start inspection procedures, including evidence and indications. Organise your report like this:

1. The name of the business, its location, its activity, and the commercial registration number if you know it.
2. Exactly what you saw and when: who receives the money, who signs, who acts as the owner.
3. How you know: direct dealings, a document you received, or what you saw yourself.
4. The attachments, with one line explaining what each one proves.
5. What you do not know. Say it clearly instead of guessing.

What evidence makes the report stronger?

The strongest attachments show where the money goes and who makes the decisions. Article 2 of the Implementing Regulations treats the following as “absolute control tools”: income going to the non-Saudi's account, the non-Saudi financing the business, or the non-Saudi having the power to appoint and dismiss the manager. Practical examples:

• A message in which the worker asks for the price of goods to be transferred to his personal account, with the transfer receipt.
• An invoice or price quotation signed as owner by someone other than the registration owner.
• Messages in which he negotiates the shop lease or buys equipment in his own name.
• Dates of the dealings and the names of people who were present.

Only submit what reached you lawfully. Getting into someone's phone or account, or taking the shop's papers without permission, may put you in breach of the law. If an important document exists that you do not have, mention it. Under Article 6 of the law, inspectors have the power to examine records, view the business's cameras and request information.

Is the identity of the person who reports kept secret?

Yes. Article 18 of the law requires the identity of reporters to be kept in a confidential register and not placed in the case file, and Article 13 of the Implementing Regulations records reports in a confidential register. The Public Prosecution may still ask for the identity to be disclosed if the investigation needs it, through procedures that protect confidentiality.

Your details are still required in the report so that the Ministry can contact you for clarification. Article 14 allows it to ask the reporter for what it needs. And avoid public accusations: posting the accusation on social media before it is proved may turn against you as a defamation claim.

What happens after you file the report?

The Ministry examines the report and the information with it, and it may contact you or seek help from other authorities. If it finds a crime, the case goes to the Public Prosecution and then the Criminal Court. If it is an administrative violation, a committee at the Ministry decides it. Under Article 15 of the Implementing Regulations, the Ministry informs you of the result after the judgment or decision becomes final. So the wait may be as long as the case itself.

How much is the reward for reporting commercial concealment?

Article 18(2) of the law gives the reporter a reward of up to 30% of the fine collected, by decision of the Minister of Commerce. Article 16 of the Implementing Regulations sets four conditions: your information must be fit to start inspection and investigation; the judgment or decision proving the crime or violation must become final; you must not be convicted in the same case; and the Ministry must actually collect the fine. The amount depends on how important your information was and how much it was used, and it is divided if there is more than one reporter (Article 17).

A report leads to a final judgment with a fine of SAR 400,000, and the Ministry collects it in full.

The maximum reward is SAR 120,000, which is 30% of the amount collected.

If another person reported more precise information, the amount is shared between them according to the value of what each provided.

If the court ordered prison only, with no fine, there is no collected fine to calculate the reward from.

A person who took part in the concealment and then decided to report it is not entitled to the reward if he is convicted. But he may be exempted from the penalty if he reported before the crime was discovered and met the conditions of the Exemption Rules.

This is general information based on the official Arabic texts of Saudi laws, which prevail over any translation. It is not legal advice for your specific case.

Practical solutions for both sides

If you want to report:

• Write down the facts with dates, and separate what you saw yourself from what you heard from others.
• Attach the original transfers and messages in full, without cropping.
• Keep the report number, and add any new information to it instead of filing a repeat report.
• If the business owes you money, claim it through its own separate route.

If a report has been filed against your business:

• Collect the employment contracts, payrolls and business bank statements that show the management and the money are in your hands.
• Make sure all point-of-sale devices and transfers go to the business's own account.
• Do not try to find out who reported you or put pressure on the workers. This will harm you.
• If there is a real problem in the arrangement, stop it and speak to a lawyer before you respond.

If you are unsure whether to file a report, or you have been summoned because of a report against your business, send us what you have on WhatsApp and we will help you put the facts and documents in order before your next step.