Title: Announcement regarding issuance of Disciplinary Board Resolution No. (92/2023 Disciplinary Board) (142/2023 Authority) and imposition of a fine against KAB Kuwait Group for Financial Brokerage 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. (92/2023 Disciplinary Board) (142/2023 Authority) and imposition of a fine against KAB Kuwait Group for Financial Brokerage Company for violating the provisions of Module Sixteen of the Executive Bylaws of Law No. 7 of 2010 and their Amendments

For the following reasons:
1- Violating the provision of Item (2) of Article (3-18):

The Company did not classify some clients of countries that do not apply or insufficiently  apply the recommendations of the Financial Action Task Force as higher risk clients, despite  a previous disciplinary resolution  against the company dated 7/11/2022. The Company failed to rectify the non-compliant situation by taking the necessary measures to update the classification of some clients from countries that do not apply or insufficiently apply the recommendations of the Financial Action Task Force as high-risk clients according to the Know Your client form submitted to the CMA’s inspection team.

2- Violating the provision of Items (2), and (5) of Article (3-19):

The Company failed to take some of the enhanced due diligence measures mentioned in Items (2) and (5) above for the selected sample of high-risk clients, despite a previous Disciplinary Board  resolution against the Company dated 7/11/2022. The Company did not rectify the non-compliant situation by taking the necessary measures to take some of the enhanced due diligence measures mentioned above for the selected sample of high-risk clients.

The Resolution included the infliction of the following penalty: -

"Levying a fine against KAB Kuwait Group for Financial Brokerage Company in an amount of KWD 10000 (ten thousand Dinars) for the two attributed violations due to correlation.”

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.