Frequently Asked Questions
Questions regarding Law No. (3) of 2023 on Combating the Concealment of Non-Qataris Engaging in Commercial, Economic, and Professional Activities in Violation of the Law.
- What is meant by concealment?
Concealment refers to enabling a non-Qatari, whether a natural or legal person, to engage in or invest in a commercial, economic, or professional activity they are not licensed to perform under the laws in force in the state. This also includes obtaining a share of profits exceeding the percentages stipulated in the company’s founding documents or articles of association.
It is also prohibited for any natural or legal person to conceal a non-Qatari by enabling them to engage in or invest in a commercial, economic, or professional activity that violates the laws in force in the state. This includes allowing them to use the concealer’s name, license, commercial or professional registration, or any other means that enable the non-Qatari to evade obligations imposed by the applicable laws, whether for the benefit of the concealed person, the concealer, or others.
Non-Qataris are not permitted to engage in commercial activities that they are not authorized to practice under the laws of the state. Qatar has established specific percentages allowing foreigners to engage in commercial activities, with the law setting a maximum ownership percentage of 49% for foreigners, while Qataris must own 51% or more. Therefore, if a foreigner’s account receives substantial amounts exceeding their salary, it raises suspicion of concealment. The matter is then referred for investigation.
This law also penalizes Qataris who enable foreigners to use their name, license, or commercial registration to evade the obligations stipulated in the laws of the state.
2- What are the committee’s functions and who are its members?
Article 3 of the above law stipulates the establishment of a Concealment Combat Committee within the Ministry of Commerce and Industry. The committee’s formation, its members’ remuneration, and its procedures are determined by a decision from the Council of Ministers.
Under the Concealment Law, the Ministry of Commerce and Industry forms a committee comprising members from various state entities. Its primary objective is to investigate concealment crimes and hold accountable anyone who undermines or attempts to destabilize the state’s economy.
3- What are the committee’s key achievements in raising awareness about the crime of concealment?
The Ministry prepared simplified educational booklets on commercial concealment, which were distributed to service offices and reception areas. The Public Relations and Communications Department issued informational brochures, launched media programs, and shared awareness-raising videos on the Ministry’s platforms and social media channels.
Additionally, a dedicated page was created on the Ministry of Commerce and Industry’s website, providing general information about concealment to encourage public participation in reporting such crimes.
As concealment is a newly identified crime in the state that impacts transparency and the economy, the committee has focused on educating and raising community awareness through educational booklets, social media advertisements, and information available on the Ministry’s website.
4- What is the mechanism for reporting a concealment crime?
Financial institutions are required to notify the Qatar Central Bank if they suspect concealment activities, providing details about individuals conducting financial transactions that indicate the possibility of such a crime. The Central Bank then informs the committee.
If concealment is suspected, banks report any inflated accounts with unexplained funds compared to the individual’s salary to the Central Bank. The Central Bank investigates and refers the matter to the committee to determine whether concealment has occurred.
5- What is the duty of individuals in the community if they become aware of a concealment crime?
It is the social responsibility of every individual to report any suspected concealment crime, given the negative economic impact such crimes have on the country. Article (7) of the law emphasizes the obligation of individuals to report suspected concealment and to provide all available information.
The responsibility is not limited to banks or financial institutions but extends to individuals as well. The legislator included the duty to report concealment in the law, highlighting the importance of providing evidence to support any suspicion. This reinforces the role of individuals in society and their responsibility to help prevent crimes that threaten the stability of the national economy.
-6What is the duty if they become aware of a concealment crime?
Anyone found guilty of a concealment crime is subject to a fine of up to 500,000 Qatari Riyals and imprisonment for up to two years. The penalty also includes the confiscation of funds related to the crime and the deportation of the foreign offender, which is a newly introduced measure. Additionally, the convicted individual is prohibited from engaging in their activity for three years following the completion of the sentence. Lastly, the penalty is published at the convicted individual’s expense in a local newspaper or through electronic media.
7- What is the legal penalty for someone who reports a concealment crime maliciously or in bad faith, or for someone who remains silent about it?
Article (9) stipulates that if a false report of a concealment crime is made, or if someone is aware of such a crime and conceals it, they are subject to a fine not exceeding 100,000 Qatari Riyals.
Individuals bear a significant responsibility towards their nation and must strive to protect society from corruption and practices that could harm the country, its economy, and its transparency. Everyone is expected to act responsibly to safeguard their homeland.
For example, if someone reports a crime maliciously, and investigations reveal it to be untrue, or if an individual is aware of a crime but fails to report it, the law imposes a penalty of up to 100,000 Qatari Riyals on those who commit such acts.
8- What is the role of the judicial enforcement officer in these crimes?
The judicial enforcement officer is responsible for examining records, documents, and files, as well as computers or any other means used to store or process information, either at the company premises or any other location.
The officer may also retain records and documents or obtain copies if evidence suggests the occurrence of a concealment crime.
The judicial enforcement officer plays a crucial role by inspecting records and documents, both on-site and externally, and has the authority to seize documents or request copies when indications of concealment are found.
9- How does the law address concealment crimes when the concealer is a legal entity?
Article (11) of the law stipulates that the person managing the legal entity is subject to the same penalty for acts committed if it is proven that they were aware of the crime or negligent in their management at the time of its occurrence, as confirmed by investigations.
Additionally, the private legal entity is subject to a fine if the acts were committed in its name, for its benefit, or by one of its employees. This does not exempt the natural person associated with the legal entity from their criminal responsibility.
10- What are the main differences between the new version of this law and its previous version, Law No. (25) of 2004?
The amendment of the law emphasizes the importance of protecting citizens’ rights, strengthening the national economy, and safeguarding commercial and economic activities. The updated version aligns with developments in the fields of economy and investment, aiming to reduce the negative impact of concealment crimes on the national economy.
The penalty for committing a concealment crime has been amended to include imprisonment for up to two years and a fine of up to 500,000 Qatari Riyals, or one of these penalties. Under the previous law, the maximum imprisonment was one year, with a fine ranging between 20,000 and 500,000 Qatari Riyals, or one of these penalties (Article 8).
The new law introduces the deportation of non-Qataris after serving their sentence (Article 9).
Penalties related to the concealed project can now be adjusted to substitute imprisonment or deportation instead of liquidating or confiscating the company, preserving the rights of others (Article 17).
