The Capital Market Authority, the Saudi Arabian Monetary Authority and the Ministry of Commerce and Investment launched an awareness campaign to warn against dealing with suspicious websites that market to invest in securities without a license from the competent authorities, including the activity of (forex).
The campaign will include awareness messages from the three parties, as well as taking legal action against the sites or individuals who promote this activity.
These entities warn dealers in securities and the public against dealing with suspicious websites whose actions may involve illegal activities. The suspicious entities advertise on the Internet and social media for investment opportunities and promises of financial gain and quick wealth, which may expose many of those dealing with them to fraud, and material losses.
Based on the Saudi Arabian Monetary Authority system issued by Royal Decree No. (23) dated 5/23/1377 AH, and the Capital Market Authority Law issued by Royal Decree No. (M / 30) dated 6/2/1424 AH, and in accordance with the statutory powers assigned to each of them, they stress the need to exercise utmost caution and beware of falling into the risks of investing, contributing, dealing or trading with any amounts in any of the activities and business of securities or foreign currencies with any person, persons, institutions, companies, establishments, or any websites (including Social media), without making sure of their regularity and obtaining the necessary licenses or regulatory approvals from the supervisory authorities in the Kingdom of Saudi Arabia to carry out these businesses and activities.
The lists of persons and entities licensed by the system can be found through the Saudi Arabian Monetary Authority website (www.sama.gov.sa) and the Capital Market Authority website (www.cma.org.sa).
In this regard, the Capital Market Authority confirmed that it deals with sites that promote the activity of (forex) through three tracks. The first is to educate the public about the violation of these sites and the risks of investing in them.
The Second track in which the Capital Market Authority coordinates with the competent government agencies to limit the phenomenon by not licensing sites or companies that operate in them and not allowing them to advertise or sponsor entities or events in the Kingdom.
The third track is to invite people to whom this investment is marketed by a person in the Kingdom to inform the Authority of this so that the Authority takes the necessary measures with the relevant authorities in accordance with the jurisdiction.
The Capital Market Authority stated that a number of websites have been closed in coordination with the relevant authorities, but due to the ease of creating new sites, the Authority confirms that the best way to reduce them is through awareness of its risks.