Title: Announcement regarding issuance of Disciplinary Board Resolution No. (35/2023) Disciplinary Board - (193,201/2022) Authority, and imposition of a warning against: Wafrah International 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. (35/2023) Disciplinary Board - (193,201/2022) Authority, and imposition of a warning against:

 Wafrah International 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: 

First: the first violation contains two parts:

1. Violating the provisions of Items No. (1,2,3) of Article (3-6) of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments.
2. Violating the provisions of Items No. (1,2,3,4) of Article (3-8) of the aforementioned Module.

It has been proven beyond doubt that the Company has repeatedly failed to verify some of the original documents and certification for some clients and actual beneficiaries, in addition to its failure to identify the ownership structure of some of its clients, and its failure to identify some of the actual beneficiaries within the primary clients, as was proven to the Authority through a review of the Company's "policies and procedures for client’s electronic transactions" which includes a clause stipulating that clients may be accepted without verifying them using original documents.

Second: Violating the provision of Article (6-1) of the aforementioned Module, which meets the Ministerial Resolution No. 35 of 2019 regarding the Executive Bylaws of the committee called for implementing Security Council resolutions issued under Chapter Seven of the United Nations Charter.

This is due to the Company’s failure to establish appropriate policies and procedures to ensure the implementation of all obligations stipulated in the violated article.

Noting that these violations are procedural and not substantive.

The Resolution included the infliction of the following penalty: 

“Issuing a warning against Wafra International Investment Company not to repeat what occurred in the future.”

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.