Inspection teams from the Ministry of Commerce carried out 4,844 inspection rounds at establishments suspected of committing crimes and violations of the Combating Front Companies Commercial Fronting during the month of March across all regions of the Kingdom, based on data analysis and artificial intelligence indicators, in coordination and cooperation with 20 government agencies, and the necessary legal measures were taken against those suspected of involvement in preparation for imposing penalties on them in accordance with the provisions of the Anti-Fronting Law.
The field inspections targeted various sectors and economic activities, including food suppliers, laundries, barbershops, auto parts retailers, maintenance and aluminum workshops, battery retailers, and stores selling fabrics, furniture, clothing, and accessories, as well as stores specializing in cosmetics, gifts, and accessories.
The Ministry of Commerce refers the owners of non-compliant establishments to the relevant authorities to impose statutory penalties in accordance with the Anti-Fronting Law, which stipulates a prison term of up to five years and a fine of five million riyals, as well as the seizure and forfeiture of illicit funds following final court rulings against those involved. In addition, the law prescribes ancillary penalties, including the closure of the establishment, the liquidation of its operations, cancellation of the commercial registration, a ban on engaging in commercial activities, collection of zakat, fees, and taxes, and the deportation of those operating under a front from the Kingdom and a prohibition on their return to work here.
Ministry of Commerce Conducts 4,844 Inspection Rounds to Combat Front Companies
