Business owners fully liable for all transactions via company bank accounts: Ministry

The Ministry of Commerce has warned business owners against any unauthorized transactions that may occur through their company bank accounts, stressing the importance of monitoring all financial dealings and transfers, and not allowing others to exploit company accounts for activities that violate regulations.

In a statement on its X platform account, the ministry clarified that a company’s commercial bank account is designated solely for its business activities and purposes. It emphasized that owners must be fully aware of all contracts, agreements, transactions, and financial transfers, and must monitor them continuously to avoid liability for any violations or crimes committed through these accounts.

The ministry outlined examples of unauthorized transactions, including receiving cash deposits or bank transfers from unknown parties, making domestic or international transfers to individuals or entities with no business relationship to the company, or conducting any banking operations through an authorized representative without the owner’s knowledge.

Such practices also include opening multiple bank accounts for a company without a legitimate business need or clear connection between the accounts, which could facilitate money laundering. Additionally, conducting financial operations—such as deposits, transfers, withdrawals, or purchases—with individuals or commercial entities not linked to the company’s business activity is prohibited.

The ministry stressed the importance of business owners complying with regulations and monitoring bank accounts and financial transactions to protect themselves and their companies from liability for any violations or crimes that may occur through these accounts.

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