CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (84/2021 Disciplinary Board) (34/2021 Authority) and imposition of a fine of 4 thousand Dinars against each of 1- KAB Kuwait Group for Financial Brokerage Company, 2- Mrs. Lamia Zaid Al-Khaled- in Her Capacity as Chairman of the Board of Directors of KAB Kuwait Group for Financial Brokerage Company
Announcement regarding issuance of Disciplinary Board Resolution No. (84/2021 Disciplinary Board) (34/2021 Authority) and imposition of a fine of 4 thousand Dinars against each of 1- KAB Kuwait Group for Financial Brokerage Company, 2- Mrs. Lamia Zaid Al-Khaled- in Her Capacity as Chairman of the Board of Directors of KAB Kuwait Group for Financial Brokerage Company for violating the rules of Clients’ Funds and Clients’ Assets, and Anti-Money Laundering and Combating Financing of Terrorism.
For violating the following:
First: KAB Kuwait Group for Financial Brokerage Company violated the following:
1- Provision of Article (68) of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and its amendments:
The Company received cash amounts from relevant parties to maintain the Company’s liquidity without registering such amounts in its financial statements (unaudited) pursuant to the financial period ending on 30/9/2020.
2- Provision of Article (3-1) of Module Seven (Clients’ Funds and Clients’ Assets) of the Executive Bylaws of Law No. (7) of 2010 Regarding the Establishment of the Capital Markets Authority and Regulating Securities Activities and their amendments:
The Company deposited an amount of (3,900,000) US Dollars that is equivalent to (1,181,700) KWD (the Company’s money) into one of its accounts allocated for the clients in US Dollars, which does not achieve the principle of segregating the company’s funds from its clients’ funds.
3- The provision of Item (2) of Article (4-1) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the aforementioned Executive Bylaws:
The Company did not undertake due diligence measures towards one of its clients, even though the mode of the operations he is performing does not comply with the annual income information submitted by him to the Company.
Second: Mrs. Lamia Zaid Al-Khaled- in her capacity as Chairman of the Board of Directors of KAB Kuwait Group for Financial Brokerage Company. It was proven that she violated the provision of Item (1) of Article (3-8) of Module Fifteen (Corporate Governance) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
In her capacity as Chairman of the Board of Directors, she did not present the issue of the two finances granted by relevant parties (Chairman of the Board of Directors) and (CEO) to the Board of Directors to discuss them and take the proper decisions thereon effectively and timely.
The Resolution included the infliction of the following penalty: -
“First: - KAB Kuwait Group for Financial Brokerage Company is fined an amount of one thousand Dinars for each of the violations attributed to it.
Second: Mrs. Lamia Zaid Al-Khaled- in her capacity as Chairman of KAB Kuwait Group for Financial Brokerage Company is fined an amount of one thousand Dinars for the violation attributed to her.”
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.