Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (25/2021 Disciplinary Board) (06/2021 Authority)
Date Publish 08 April 2021
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Thursday April 8, 2021 on violation No. (25/2021 Disciplinary Board) (06/2021 Authority) against: Azyan Capital Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:
First: - Provision of Item (6) of Article (2-3) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
The Company failed to monitor one of the risks identified through the money laundering and terrorist financing risk assessment study of the Company, which are the risks associated with clients, as the aforementioned study indicated the existence of a (Transaction Monitoring) system to monitor client operations, and it has not been proven to the Authority by any evidence the existence of this system.
Second: - Provision of Article (3-20) of the aforementioned Module:
The Company did not identify its client, Mr. Saleh Hassan Al-Afaleq, as being from the category of politically exposed persons, despite his holding of several political positions, according to what was stated in the results obtained from the Company's automated system.
The decision included the infliction of the following penalty: -
“The Company is fined an amount of one thousand dinars for each violation”
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 Laws 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.
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