Issuance of a Law Decree on Combating Commercial Concealment

Today, Sunday, Decree-Law No. 78 of 2026 on Combating Commercial Concealment was issued, aiming to address the phenomenon of conducting economic activities without obtaining the necessary licenses and to regulate the economic activity environment in a manner that ensures transparency, fairness, equal opportunity, and strengthens the state’s capacity for oversight, regulation, and revenue collection.

The explanatory memorandum of the aforementioned decree-law, which comprises 14 articles, stated that economic activities are among the fundamental pillars of the state’s progress and stability, and must be conducted within an organized framework that complies with the provisions of the law and relevant legislation, thereby achieving sustainable economic development and protecting public order and the public interest.

The explanatory memorandum noted that in recent years, some individuals prohibited from conducting economic activities without obtaining the necessary licenses have engaged in such activities, leading to chaos and instability in the market and its system, which has negatively impacted the core principles underpinning the business environment.

Article One of the decree-law defined key terms contained therein, while Article Two prohibited any natural or legal person from conducting any economic activity within the country on their own behalf or in partnership with others, unless they hold the required license from the competent authority or do not exceed the scope of the granted license, particularly when such activity is conducted through a person who enables them to carry out that activity. This underscores the principle of market regulation and preventing arbitrariness in conducting economic activities.

The same article also prohibited commercial concealment by forbidding any person from enabling another to conduct any economic activity in violation of the provisions of this decree-law, whether directly or indirectly, or by any means whatsoever, including allowing the use of a trade name, license, or other means that enable the person to conduct the economic activity in violation of the decree-law’s provisions.

Articles Three and Four stipulated the penalties for violating the decree-law’s provisions. Article Three provided that, without prejudice to any harsher penalty prescribed by the Penal Code or any other law, anyone who violates the prohibition set forth in Article Two shall be punished with imprisonment for a term not less than one year and not exceeding three years, and a fine not less than 10,000 dinars and not exceeding 100,000 dinars, or an amount equivalent to the total profits obtained, whichever is greater, or with one of these two penalties. Fines shall be multiplied according to the number of violating persons or activities.

Article Four stipulated that, without prejudice to any harsher penalty prescribed by the Penal Code or any other law, anyone who violates the prohibition set forth in Article Eleven shall be punished with imprisonment for a term not exceeding six months and a fine not exceeding 10,000 dinars, or with one of these two penalties. Fines shall be multiplied according to the number of violating persons or activities.

Article Five emphasized punishing the person responsible for the actual management of the establishment if their knowledge of the violation is established, or if the violation occurred due to their failure to fulfill the duties imposed by their management, in application of the principle of actual responsibility and ensuring that those who exercise actual direction and supervision over the activity subject to the violation are not exempt from punishment.

The same article also established the liability of legal persons jointly with their employees whenever the violation was committed in the name of the legal person or for its benefit, affirming the principle of institutional accountability and ensuring that legal entities are not exploited as a legal cover for unlawful acts.

Article 6 stipulates that, in the event of a conviction for any of the offenses specified in this decree-law, the court must order the confiscation of funds and profits derived from the crime of commercial concealment, in order to deprive the offender of the illicit proceeds of their unlawful activities and to ensure the effectiveness of both general and special deterrence.

The provision safeguards the rights of bona fide third parties and prevents any abuse in its application, emphasizing that confiscation is limited to the proceeds of the crime, its instruments, and the equipment and means used in the unlawful activity, alongside the closure of the establishment, revocation of the license, and deportation of the foreign national.

Article 7 reinforces the severity of penalties in cases of recidivism, specifying that the prescribed penalty shall be doubled if the offender reoffends with commercial concealment within five years from the date the final conviction judgment becomes enforceable. This aims to strengthen the principle of special deterrence and enhance accountability for those who persist in violating the law despite prior punishment.

Article 8 introduces a settlement mechanism as a legislative option allowing for the resolution of certain violations under specific controls and conditions, without resorting to custodial sentences except where necessary. The article authorizes the competent Minister or their delegate to settle the offenses covered by this decree-law before initiating proceedings before the competent court, or to dismiss the case or before a final judgment is rendered, in exchange for paying an amount not less than half of the maximum prescribed fine.

The same article stipulates that acceptance of the settlement requires the removal of the violation and the regularization of the legal status. It further establishes that the settlement results in the extinction of the criminal prosecution, while affirming that this does not preclude administrative deportation measures if national interest so dictates. Additionally, settlements are not accepted in cases of recidivism.

Article 9 allows for a financial reward, determined by a decision of the competent Minister, to any individual who is not a perpetrator but contributes to the discovery of any of the commercial concealment offenses outlined in this law through reporting. The reward shall not exceed 10 percent of the total value of collected fines, provided that the informant submits credible evidence relied upon in discovering the crime and securing a final conviction judgment. The article also mandates that the reward be distributed equally among multiple informants reporting the aforementioned offenses.

Article 10 grants the status of judicial police officers to employees responsible for implementing the provisions of this decree-law, whose designation is issued by a decision of the competent Minister or their delegate, to enable them to perform their duties effectively.

Article 11 prohibits obstructing or preventing competent employees from carrying out their duties under this decree-law, whether by barring them from conducting supervisory or inspection activities, refusing to provide required information or documents, or submitting false or misleading data and information. This aims to strengthen the role of regulatory authorities in enforcing the provisions of this decree-law and ensuring its effectiveness.

Article 12 stipulates that the competent Minister shall issue the necessary decisions to implement the provisions of this decree-law, while Article 13 repeals all provisions conflicting with its terms.

Article 14 provides that “the Prime Minister and the Ministers, each within their respective jurisdictions, shall implement this decree-law, which shall enter into force six months after its publication in the Official Gazette.”