Title: Announcement Regarding Issuance of Disciplinary Board Resolution No. (44/2021 Disciplinary Board) (52/2021 Authority) and imposition of a fine of four thousand Dinars against Dimah Capital Investment Company for violating Anti-Money Laundering and Combating Financing of Terrorism

Announcement Regarding Issuance of Disciplinary Board Resolution No. (44/2021 Disciplinary Board) (52/2021 Authority) and imposition of a fine of four thousand Dinars against Dimah Capital Investment Company for violating Anti-Money Laundering and Combating Financing of Terrorism.

For the following reasons:
1- Provision of Item (5) of Article (3-6) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Where it was conclusively proven to the Authority through the selected sample of clients that the Company did not implement any of the due diligence measures related to verifying the basis of the client's wealth and the source of his funds.

2- The Company’s violation of the provisions of Item (3) of Article (3-8) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Where it was conclusively proven to the Authority through the selected sample of non-resident clients that the Company did not implement any of the due diligence measures to these clients, specifically verifying that their official papers are authenticated by the concerned authorities in the State of Kuwait.

3- The Company’s violation of the provisions of Items (1) and (2) of Article (3-21) of Module Sixteen (Anti-Money Laundering and Combating Financing of Terrorism) of the Executive Bylaws of Law No. 7 of 2010 and their amendments:
Where it was conclusively proven to the Authority through the selected sample of politically exposed clients that the Company did not implement any additional due diligence measures to this category of clients, specifically not taking the necessary approvals from senior management.

4- The Company’s violation of the provisions of Article (23) of Ministerial Resolution No. (35) of 2019 regarding the Executive Bylaws of the Special Committee for the Implementation of Security Council Resolutions issued under Chapter VII of the United Nations Charter related to combating terrorism and financing the proliferation of weapons of mass destruction attached to the Capital Markets Authority Circular No. (13) of 2019 issued on 15/09/2019:
It was conclusively proven to the authority that the company did not verify the names of the actual beneficiaries of one of the company's clients and compare them with the names on the national list issued by the relevant committee of the Ministry of Foreign Affairs and its updates.

The Resolution included the infliction of the following penalty: -
“The Company is fined an amount of one thousand Dinars for each of 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.