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samaSaudi Arabian Monetary AuthorityNewsSpecial Governmental Committee for Awareness Against Unauthorized Forex Activities Warns: Dealing in Unauthorized Foreign Securities' Activities is Fraudulent
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Special Governmental Committee for Awareness Against Unauthorized Forex Activities Warns: Dealing in Unauthorized Foreign Securities' Activities is Fraudulent
01/05/2018

The special governmental committee for awareness on dealing in unauthorized securities activities in the foreign exchange market (Forex) - assembled by a royal order - started to convene periodic meetings to develop a broad awareness campaign to warn against such activities, a statement from the Capital Market Authority (CMA) said.

The committee is headed by CMA and includes representatives of the Ministry of Interior, Ministry of Culture and Information, Ministry of Commerce and Investment, and The Saudi Arabian Monetary Authority (SAMA). The committee's establishment is due to the widespread of Forex activities, which is a modern method that exploits the lack of knowledge of a large number of dealers in the rules and regulations of the financial market. Forex activities also exploit the desire of many in the public to fast earnings without being aware of associated risk with such dealings.

According to the High Order to establish the committee, its tasks will include coordinating with related governmental bodies to face this activity curb its spread. The governmental bodies include: the Technical and Vocational Training Corporation, General Entertainment Authority, General Sports Authority, and the Saudi Exhibition & Convention Bureau. The committee also seeks to coordinate with specialized governmental bodies to curb the spread of this phenomenon by not authorizing any websites or companies that work in such activities and not allowing them to advertise or sponsor any events in the Kingdom.

The committee stressed that the public should be cautious about the risks associated with investing, participating, dealing in any amount in any securities activities or foreign currencies with any person, persons, companies, corporations, institutions or websites (including social media) without confirming they are legal entities and have the necessary authorization and legal documentation, licenses and approvals from the relevant authorities in the Kingdom of Saudi Arabia to exercise such transactions or activities.

Moreover, the committee warned the public and those dealing in securities from the risk of dealing with suspicious websites that could involve illegal activities and promote investing opportunities and the promise of quick financial profit and fortune through the internet and social media or direct phone calls. This could expose clients to fraud and material losses.

The committee urges anyone who has been contacted by persons marketing such activities to report them to SAMA or CMA via their official websites.

Lists of persons and licensees provided by governmental bodies related to investing in the financial sector are available on their official websites. These lists should be the base for any person who wants to invest in securities business as they are supervised by regulating entities in the Kingdom.

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