Last updated: 5 November 2026
Saudi Arabia’s Ministry of Commerce has warned business owners that a company bank account may be used only for the business’s own activity, and that the owner is responsible for every transfer made through it. The warning, posted on 4 November 2026, lists the transactions that count as red flags, from cash deposits by unknown people to transfers to people who do not work for the business.
What the Ministry of Commerce Said
According to the ministry, a business (establishment) bank account exists only for that business’s activity. The owner must know about and follow every contract, transaction and transfer on the account, and is held accountable for any violation or crime carried out through it, even when someone else made the transaction.
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The 5 Red Flags on a Business Account
- Cash deposits or transfers from unknown parties into the business account.
- Transfers inside or outside Saudi Arabia to people with no work contract with the business.
- Transactions by the authorised signatory without the owner’s knowledge.
- Several accounts opened with no business need, which can be used to move money.
- Deposits, withdrawals or purchases with parties unrelated to the business’s activity.
The ministry has made this point before; the new post adds the list of warning signs. It did not announce new penalties.
What This Means for Expats
The warning is aimed at business owners, but several situations common among expats fall right inside it:
- Running a shop under a Saudi’s commercial registration. If the account is in the owner’s name but you move the money, both of you are exposed. Our guide on whether an expat can run a business under a Saudi’s name explains the cover-up (tasattur) rules and the legal routes.
- Signing power on a company account. If you are the authorised signatory, every transfer you make should be one the owner knows about and the business needs.
- Offers to “receive a transfer” for someone else. Never let a stranger, a friend or an online contact pass money through a business or personal account. Accounts used this way can be frozen; see what to do if your Saudi bank account is frozen.
Simple Checks for Business Owners
- Review the account statement every week, not only at month end.
- Pay salaries only to people with a contract on record, through the wage protection system.
- Close extra accounts you do not need.
- Ask the bank to send you alerts for every transaction, including those made by the signatory.
- Keep invoices and contracts for every large deposit or payment.
Frequently Asked Questions
Who issued the warning on business bank accounts?
Saudi Arabia’s Ministry of Commerce, on its official X account on 4 November 2026.
Is the owner responsible if the signatory made the transfer?
Yes. The ministry says the owner is accountable for violations or crimes carried out through the business account, and lists transactions by the signatory without the owner’s knowledge as a red flag.
Can I use my company account to receive money for friends?
No. Deposits from unknown parties and dealings with people unrelated to the business are on the ministry’s red-flag list. Use the account only for the business’s own activity.
Sources: Ministry of Commerce (X, @MCgovSA), Al Eqtisadiah, Al Watan, Ajel, 4 November 2026.