Saudi Gazette report

RIYADH — The Ministry of Commerce unveiled plans to penalize companies if they failed to disclose beneficial owner data or submit annual confirmation of that data.

The proposed penalty is SR500. If the violation of failing to submit annual confirmation of beneficial owner data is repeated within a year following the previous violation, the fine will be increased by 50 percent.

The draft ministerial resolution, currently available on the "Istilaa" platform for public feedback before its approval, stipulates that any company failing to disclose beneficial owner data or submit annual confirmation of beneficial owner data within the timeframe stipulated by the beneficial owner regulations will be subject to a direct penalty of SR500. This move aims to enhance compliance with beneficial owner regulations, as well as to improve oversight and enforcement mechanisms, and ensure fairness in imposing fines.

The mechanism for notifying the direct violation decision is to be in accordance with the mechanism stipulated in Article 94 of the Executive Regulations of the Companies Law.