Beneficial Owner: Saudi Decision Sets Fines for Non-Disclosure and Annual Confirmation
Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi issued a regulatory decision outlining penalties for failing to disclose the beneficial owner information or failing to submit the required annual confirmation, as part of efforts to strengthen transparency and compliance within corporate ownership structures.
Under the decision, a company is warned upon the first violation and granted a 30-day correction period starting the day after the warning is issued.
If the violation is not corrected within the deadline, a direct penalty is imposed in line with the decision, reinforcing the role of beneficial owner disclosure in safeguarding commercial transactions.
Tiered fines based on company capital
The decision sets tiered monetary fines according to company capital to ensure beneficial owner rules are applied proportionately across different business sizes, from smaller firms to larger entities.
- SAR 4,000 for companies with capital below SAR 500,000.
- SAR 20,000 for capital between SAR 500,000 and SAR 2.5 million.
- SAR 40,000 for capital above SAR 2.5 million up to SAR 5 million.
- SAR 80,000 for capital exceeding SAR 5 million.
Fine doubling for repeat violations and a cap
If the violation is repeated within one year from the date the previous violation decision becomes final, the prescribed fine is doubled.
The decision also caps total fines at SAR 500,000, aiming to deter non-compliance while ensuring regular updates of beneficial owner data.
Boosting transparency and record reliability
The move aligns with the Ministry of Commerce’s broader efforts to enforce beneficial owner disclosure rules, curb irregular practices, and enhance the reliability of commercial records.
It also supports an improved business environment in line with international best practices, strengthening trust in ownership structures and regulatory compliance.
