Organized by the National Program to Combat Fronting conducted more than 11,300 inspection visits in May 2023 to verify commercial establishments" compliance with approved market regulations, and to detect crimes and violations of the Anti-Fronting Law across various regions of the Kingdom. The inspections included 9,089 targeted visits, 2,027 scheduled visits to specific sectors, and 231 visits based on reports of suspected fronting.

The following entities participated in the inspections: the Ministry of Commerce, the Ministry of Municipal, Rural Affairs, and Housing, the Ministry of Interior, the Ministry of Human Resources and Social Development, and the Zakat, Tax, and Customs Authority. The inspection visits covered activities including: contracting, auto parts, food and beverages, clothing, footwear, barbershops, and others. Immediate citations were issued, suspected cases of fronting were identified, and violators were referred to the competent authorities for verification and the imposition of statutory penalties should the violations be substantiated.

Penalties Commercial Fronting

and Penalties under the Anti-Fronting Law include imprisonment for up to five years, a fine of up to five million riyals, and the seizure and forfeiture of illicit funds following final court rulings against those involved, in addition to the ancillary penalties prescribed by law, which are: closure of the establishment, liquidation of the business, cancellation of the commercial registration, prohibition from engaging in commercial activity, collection of zakat, fees, and taxes, public censure, and deportation of those under fronting arrangements from the Kingdom without permission to return to work there.