CMA LAW: Announcement regarding issuance of Disciplinary Board Resolution No. (23/2023) Disciplinary Board - (13/2022) Authority and imposition of a fine against Safi Abdulaziz Al-Mutawa (KPMG Office - Safi Al-Mutawa and Partners) in his capacity as the external auditor for Arab 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. (23/2023) Disciplinary Board - (13/2022) Authority and imposition of a fine against:
Safi Abdulaziz Al-Mutawa (KPMG Office - Safi Al-Mutawa and Partners) in his capacity as the external auditor for Arab 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: 
Provision of Article (7-7) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their amendments:

1. The Company failed to implement some of the procedures included in the policies and procedures manual, some of its items violated some of the regulatory and legal requirements, and it failed to update some of the procedures included in the manual to reflect the procedures actually followed by the Company.

2. The risk study prepared by the Company was inadequate and some of its items violated some of the regulatory and legal requirements.

3. The system followed for determining the Politically Exposed Persons (PEPs) was inefficient and the procedures followed by the Company to deal with this category of clients were incorrect.

It should be noted that these violations are procedural and not substantive.

The Resolution included the infliction of the following penalty: -
" Levying a fine on Safi Abdulaziz Al-Mutawa (KPMG Office - Safi Al-Mutawa and Partners) in his capacity as the external auditor for Arab Investment Company in an amount of KWD 2000 (two thousand dinars) for the attributed violation in its three comments.”

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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