CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (71/2024 Disciplinary Board) (83/2024 Authority) and imposition of a fine against: Wafra International Investment Company for violating the Provisions of (Module Sixteen) of the Executive Bylaws of Law No. 7 of 2010 and their amendments

Announcement regarding issuance of Disciplinary Board Resolution No. (71/2024 Disciplinary Board) (83/2024 Authority) and imposition of a fine against: Wafra International Investment Company for violating the Provisions of (Module Sixteen) of the Executive Bylaws of Law No. 7 of 2010 and their amendments

For the following reason:
Violating the provision of Article (6-1) of Module Sixteen, it was proven to the Authority throughout examining the system for verifying the terrorist lists of the Company and by examining the selected sample of clients, the Company failed to establish suitable policies and procedures to ensure implementing all obligations stipulated in the article mentioned in the violation, as specified below:

1. The Company failed to verify the actual clients and beneficiaries within the main client on an ongoing basis.

2. The Company failed to verify the actual beneficiaries within the main clients when verifying the national lists.

3. The Company’s verification system did not recognize one of its clients.

Please note that these violations are procedural, not objective.

The Resolution included the infliction of the following penalty: -
“Levying a fine against: Wafra International Investment Company in an amount of KWD 1,000 (one thousand Dinars) for the attributed violation in all its items”.

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.