• The following words and phrases - wherever they appear in this Law - shall have the meanings indicated next to each, unless the context requires otherwise:

• 1- Shamous System: A centralized automated system for the National Information Network, through which information is transmitted to the National Information Center at the Ministry of Interior via networks licensed by the Communications and Information Technology Commission.

• 2- Ministry: Ministry of Interior.

• 3- Government Entities: Entities concerned with granting licenses to private establishments to practice the activities stipulated in this Law.

• 4- Information: Information and data of the clients dealing with private establishments, required to be registered and sent through the Shamous System to the National Information Center at the Ministry.

• 5- Private Establishments: Companies, institutions, offices, and shops in the private sector, obligated to participate in the Shamous System in accordance with this Law.

• 6- Client: The natural personality benefiting from the services provided by private establishments.

The purpose of this law is to establish the general rules for the electronic transfer of information of individuals dealing with private entities to the National Information Center at the Ministry of Interior via the Shamoos system, and to define the mechanism for monitoring violations and the penalties resulting from them.

This Law applies to private establishments engaged in the following activities:
1 - Tourist accommodation facilities and rental of rest houses.
2 - Car rental.
3 - Purchasing gold and jewelry from the dealer.
4 - Transporting passengers between cities within the Kingdom or to outside it.
5 - Transporting vehicles.
6 - Renting real estate.
7 - Sports centers.
8 - Selling vehicles that have been deregistered (salvage shops).

The Ministry is responsible for operating the Shumoos system, supervising its implementation, developing it, and taking the necessary procedures to achieve that.

The Ministry is responsible for coordinating with government entities to ensure their connection to the Shumoos system, determining the types of information that must be entered into the system, including reporting violations of the provisions of this law, and establishing the mechanism for exchanging that information and how government entities can benefit from it.

The Ministry, in coordination with government entities, shall establish a mechanism to ensure that private establishments are registered in the Shumoos system before issuing or renewing the business activity license.

Private establishments must adhere to the following:
1 - Participation in the Shumoos system.
2 - Complete registration of information.
3 - Accurate registration of information.
4 - Immediate registration of information from the start of dealing with the client.

1- The Ministry is responsible for ensuring that private establishments comply with the provisions of this Law, monitoring violations, and enforcing the prescribed penalties.
2- The Ministry, in coordination with government entities, shall establish the necessary procedures for those entities (according to their competencies) to report to the Ministry about private establishments that violate the provisions of this Law.

• Without prejudice to any harsher penalty stipulated by another law; the private establishment that violates the provisions of this law shall be punished as follows:

• 1 - In the event of violating paragraph (1) of Article (7) of this law; the penalties shall be as follows:

  • A - Warning.

  • B - A fine of (10,000) ten thousand Riyals if it does not comply within thirty days from the date of being notified of the warning.

  • C - A fine of (25,000) twenty-five thousand Riyals if it does not comply within thirty days from the date of being notified of the penalty decision referred to in paragraph (B) of paragraph (1) of this article.

  • D - Suspension of activity until compliance, if it does not comply within thirty days from the date of being notified of the penalty decision referred to in paragraph (C) of paragraph (1) of this article, provided that this is done in coordination with the relevant government authorities, taking into account not to harm the clients of the establishment.

• 2 - In the event of violating paragraphs (2, 3, 4) of Article (7) of this law; the penalties shall be as follows:

  • A - Warning upon the first violation.

  • B - A fine of (5,000) five thousand Riyals in the event of committing the same violation for the second time within six months from the date of the first violation.

  • C - A fine of (25,000) twenty-five thousand Riyals in the event of committing the same violation for the third time within six months from the date of the second violation.

  • D - Suspension of activity for a period not exceeding sixty days in the event of committing the same violation for the fourth time within six months from the date of the third violation, provided that this is done in coordination with the relevant government authorities, taking into account not to harm the clients of the establishment.

The penalties stipulated in Article (9) of this Law shall be issued by a decision from the Minister of Interior or his delegate. A person against whom a decision has been made regarding one of the penalties may file an objection before the Administrative Court within sixty days from the date of being informed of the decision issued by the Ministry rejecting the appeal, or after the lapse of sixty days without a resolution, in accordance with the provisions of the Procedures of Law before the Board of Grievances.