Saudi warning: letting others use your company bank account can bring charges

Saudi Arabia's Ministry of Commerce has told company owners that their business bank accounts must be used only for genuine trade, and that letting anyone else run them, or failing to watch what passes through them, can end in a criminal conviction and a large fine. ARY News reported the advisory on Wednesday.

The warning matters for the many Pakistanis who own, co-own or manage small businesses in the Kingdom, from grocery shops and workshops to contracting firms.

What the ministry is warning about

The advisory says owners and managers are legally responsible for every transfer, deposit and contract linked to their business. The activity it flags as suspicious:

• Unusual cash deposits, or money arriving from unknown sources.
• Transfers at home or abroad to people or companies that have no formal contract with the account holder.
• Bills paid through proxies instead of by the business itself.
• Running several company accounts with no real business reason or link between them, which the ministry says makes them easy to exploit for illegal activity.

Most importantly, owners must not let third parties operate their company accounts. Allowing that, or neglecting to monitor the account, can itself be treated as an offence.

Why it matters for Pakistanis in Saudi Arabia

Arrangements where a business is registered in one person's name but run, and its account used, by someone else are exactly what this advisory targets. If you are in that position:

1. Check who has access to online banking, cheque books and cards for your company account, and remove anyone who should not have it.
2. Keep a contract or invoice for every regular payment in and out.
3. Do not accept deposits for others, including relatives sending money home. Personal remittances should go through your own personal account or a licensed exchange.
4. Close accounts you do not use.

The ministry frames the step as part of the wider push under Vision 2030 to make the Saudi business environment more transparent and to fight financial crime.

Sending money home

Money sent to Pakistan through banks and licensed exchange companies counts towards the official remittance channel. Check today's rate on our Saudi riyal to rupee page before you transfer, and convert any amount with the currency converter.