RIYADH — The Ministry of Commerce has warned business owners against any unlawful activity conducted through their establishments’ bank accounts. It emphasized the importance of monitoring all financial transactions and transfers and preventing others from exploiting these accounts for practices that violate regulations.
The ministry indicated that an establishment’s bank account is intended solely for its commercial activities. It added that owners must be fully aware of all contracts, agreements, transactions, and financial transfers involving their establishments and monitor them continuously to avoid being held accountable for any violations or crimes committed through their accounts.
The ministry said irregular transactions involving an establishment’s bank account may include receiving cash deposits or transfers from unknown parties; sending funds domestically or internationally to individuals or entities with no contractual relationship with the establishment; or carrying out banking operations through an authorized representative without the owner’s knowledge.
These practices also include opening multiple bank accounts for an establishment without a genuine business need or a clear link between them, which could be misused to channel funds. They also include conducting financial transactions, such as deposits, transfers, withdrawals, and purchases, involving individuals or business entities unrelated to the establishment’s commercial activities.
Source: Saudi Gazette