Decree-Law to Combat Commercial Concealment... Implementation After Six Months
- To address the phenomenon of conducting economic activities without obtaining the necessary licenses
- Imprisonment for up to three years and fines of up to 100,000 dinars for violators
- Confiscation of funds, closure of the establishment, cancellation of licenses, and deportation of foreigners in case of conviction
- Rewards for whistleblowers reporting violations, and settlement options under specific conditions before final judgments are issued
Decree-Law No. 78 of 2026 on Combating Commercial Concealment was issued today, Sunday, with the aim of addressing the phenomenon of conducting economic activities without obtaining the necessary licenses, and regulating the economic activity environment to ensure transparency, justice, and equal opportunities, while enhancing the state’s capacity for oversight, regulation, and revenue collection.
The explanatory memorandum for the aforementioned decree-law, which comprises 14 articles, stated that economic activities are fundamental pillars of the state’s progress and stability, and must be conducted within an organized framework that complies with legal provisions and related legislation, thereby achieving sustainable economic development and protecting public order and the public interest.
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The explanatory memorandum further noted that in recent years, some individuals prohibited from conducting economic activities have done so without obtaining the necessary licenses. This has led to a state of disorder and instability in the market, negatively impacting the core principles underpinning the business environment.
Article One of the decree-law defines the key terms it contains. Article Two prohibits 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 necessary license from the competent authority or operate within the limits of the granted license. This prohibition applies even if the activity is conducted through another person who enables them to carry out such economic activity, thereby reinforcing the principle of market regulation and preventing arbitrariness in conducting economic activities.
The same article also prohibits 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. This includes allowing the use of a trade name, license, or other means that enable the person to conduct economic activities in violation of the decree-law’s provisions.
Articles Three and Four outline the penalties for violating the provisions of this decree-law. Article Three stipulates 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 of not less than one year and not more than three years, and/or a fine of not less than 10,000 dinars and not more than 100,000 dinars, or an amount equivalent to the total profits obtained, whichever is greater. Fines are multiplied according to the number of violating persons or activities.
Article Four stipulates 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/or a fine not exceeding 10,000 dinars. Fines are multiplied according to the number of violating persons or activities.
Article Five emphasizes the punishment of 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. This applies the principle of actual responsibility and ensures that those who direct and supervise the activity in question are not exempt from punishment.
The same article also establishes the liability of legal entities, jointly and severally with their employees, when the violation is committed in the name of or for the benefit of the legal entity, thereby affirming the principle of institutional accountability and ensuring that legal entities are not exploited as a legal cover for unlawful acts.
Article Six stipulates that, in the event of a conviction for any of the crimes specified in this decree-law, the court must order the confiscation of funds and profits derived from the crime of commercial concealment. This aims to deprive the offender of the illicit proceeds of their violating activities and to achieve both general and specific deterrence.
The provision ensures respect for the rights of bona fide third parties and prevents any abuse in application, emphasizing that confiscation is limited to the proceeds of the crime, its instruments, and the equipment and means used in the violating activity, along with the closure of the establishment, revocation of the license, and deportation of the foreigner.
Article Seven reinforces penalties in cases of recidivism, specifying that the prescribed penalty is doubled if the offender re-offends by committing the crime of commercial concealment within five years from the date the final conviction judgment becomes enforceable. This serves to strengthen the principle of specific deterrence and enhance accountability for those who persist in repeating violations despite prior punishment.
Article Eight introduces a settlement system as a legislative option, allowing for the resolution of certain violations under specific controls and conditions, without resorting to custodial sentences except in cases necessitating them. The article authorizes the competent Minister or their delegate to settle the crimes specified in this decree-law before initiating proceedings before the competent court, during their consideration, 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. The settlement results in the extinction of the criminal prosecution. It further confirms that this does not preclude administrative deportation measures if national interest so dictates, and that settlement cannot be accepted in cases of recidivism.
Article Nine allows any non-perpetrator who contributes to the discovery of the crimes of commercial concealment specified in this law, through reporting, to receive a financial reward determined by a decision of the competent Minister. This reward shall not exceed 10 percent of the total value of collected fines, provided that credible evidence is submitted that leads to the discovery of the crime and results in a final conviction judgment. The article also provides for the equal distribution of the reward among multiple reporters of the aforementioned crimes.
Article Ten grants the personnel responsible for implementing the provisions of this decree-law, whose designation is issued by a decision of the competent Minister or their delegate, the status of judicial police officers to enable them to perform their duties effectively.
Article Eleven prohibits obstructing or preventing competent employees from carrying out their duties under this decree-law, whether by preventing 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 enhance the role of regulatory authorities in enforcing the provisions of this decree-law and ensuring its effectiveness.
Article Twelve stipulates that the competent Minister shall issue the necessary decisions to implement the provisions of this decree-law, and Article Thirteen repeals all provisions conflicting with its terms.
Article 14 stipulates that “the Prime Minister and the ministers shall each, within their respective areas of responsibility, implement this decree-law, which shall enter into force six months after its publication in the Official Gazette.”
