CmaBoardReleases
Title: Announcement regarding issuance of Disciplinary Board Resolution No. (120/2022 Disciplinary Board) (85/2022 Authority) and imposition of a fine against Kuwait Investment Company for violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments
Announcement regarding issuance of Disciplinary Board Resolution No. (120/2022 Disciplinary Board) (85/2022 Authority) and imposition of a fine against Kuwait Investment Company.
For violating the rules of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments.
For the following reasons:
The Company violated the provision of Article (3-38) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments due to the inefficiency of the mechanism followed by the Company to audit all complex and large transactions and all unusual patterns of transactions by only monitoring the transactions of high-risk clients. The Company also violated the provision of Article (6-1) of the same Module, as it was proven to the CMA that the Company did not prepare adequate policies and procedures to ensure the implementation of all the obligations included in the Article subject of the notice.
Provided that these violations are procedural and not substantive.
The Resolution included the infliction of the following penalty: -
"Levying a fine against Kuwait Investment Company in an amount of KWD 2000 (two thousand Dinars) for each of the two 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.