CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution on Violation No. (28/2021 Disciplinary Board - 11/2021 Authority)
The Capital Markets Authority announces the issuance of Disciplinary Board Resolution passed in its meeting held on Wednesday June 9, 2021 on violation No. (28/2021 Disciplinary Board - 11/2021 Authority) filed against: National Investments Company.
The operative part of the Resolution resulted in the aforementioned being convicted of violating the following:
First: Violation of the provision of Article (3-20) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 and their Amendments:
It was proven conclusively to the Authority the inefficiency of the Company’s system to determine whether the client, potential client or beneficial owner is from the High-risk Politically Exposed Persons (“PEPs”), through the Company’s failure to identify the two clients (Al Khair National for Stocks Real Estate, Gulf Cement Company) as being from the category of PEPs.
Second: The Company’s violation of Ministerial Resolution No. (35) of 2019 regarding the Executive Bylaws of the Committee for the Implementation of Security Council Resolutions issued pursuant to Chapter VII of the United Nations Charter on anti-terrorism and financing of proliferation of weapons of mass destruction attached to the Capital Markets Authority Circular No. (13) of 2019 issued on September 15, 2019:
It was conclusively proven to the Authority that the Company did not verify the names of companies and those authorized to sign for corporate clients, in order to ensure that their names did not appear on the lists issued by the United Nations as well as the national list, according to the following table:
No. |
Client Name |
Client Number |
Inspection Team Notes |
1 |
Al-Ashraf Holding Company |
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Failure to verify the names of the members of the Board of Directors. |
2 |
Rastigar International General Trading & Contracting Company |
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Failure to verify the names of the owners and authorized signatories. |
The decision included the infliction of the following penalty: -
“The violating Company is fined an amount of two thousand Dinars for the attributed violations.”
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.