Saudi Gazette report

RIYADH — The National Program to Combat Commercial Concealment (tasattur) under the Ministry of Commerce has announced that there will be no extension of the grace period for correcting tasattur violations. The grace period will end on Wednesday, February 16.

The authorities had earlier extended the corrective period by another six months starting from Aug. 23, 2021.

The program warned the violating establishments of deterrent penalties including imprisonment of up to 5 years or a fine of SR5 million or both, and confiscation of illegal assets and funds of those involved in the financial crime.

The program allows several options for those who wish to apply for corrective measures, including a partnership between a citizen and a non-citizen, or registering the ownership of the facility in the name of a non-citizen, or for the citizen continuing to engage in economic activity by introducing a new partner in the facility.

The ministry urged all Saudi and non-Saudi commercial establishments and businesses to take advantage of the grace period before the deadline and quickly submit requests for correction by visiting the ministry’s website mc.gov.sa.

The tasattur (or cover-up) is the local term for the common practice of a Saudi citizen allowing a non-Saudi to engage in commercial or industrial activity in his name in return for a fixed payment.