The Ministry of Commerce and Investment, the Capital Market Authority and the Saudi Arabian Monetary Agency (SAMA) are launching an awareness campaign to warn against dealing with suspicious websites that promote for investing in securities and currency trade including Forex (Foreign Exchange) without obtaining the required licenses from the relevant authorities.
The said campaign will include Awareness Messages from the above mentioned authorities, as well as warning of taking legal action against the sites or individuals promoting this kind of illegal activity.
The above mentioned authorities warn those dealing with securities or currency trade or Forex through suspicious websites, whose activities may involve irregular or illegal transactions. These websites promote their advertisements through internet and social media, claiming good investment opportunities and promises of quick financial profit and fortune. These kind of illegal transactions may expose the clients to fraud and money losses.
According to the Saudi Arabian Monetary Agency (SAMA) Regulations, issued by the Royal Decree No. 23 dated 23/5/1377 and the Capital Market Law issued by the Royal Decree No. (M / 30) dated 2/6/1424 AH, and in accordance with the statutory competencies of the aforementioned authorities, and due to the keenness of the concerned authorities to raise awareness among the dealers and warn them against such suspicious transactions and activities, the aforementioned authorities stress the need to exercise utmost caution and attention against falling into the risk of investing, exchanging, dealing or trading any amounts or currency in any securities or foreign exchange with any person, parties, institutions, companies or entities, websites, including social media, without ensuring their authenticity, and ensuring as well that they have got licenses or official approvals from the concerned authorities in the Kingdom of Saudi Arabia for exercising such transactions or activities.
Meanwhile, lists of persons and licensees can be found and reviewed through the Saudi Arabian Monetary Agency 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 has been dealing with the websites promoting for (Forex) activities through three tracks, the first is to raise public awareness of the illegality of these sites and the risk of investing in them, and through working with the Saudi Arabian Monetary Agency to counter this illegal activity, where the two authorities launched awareness campaigns to warn against dealing with unlicensed sites and suspicious websites promoting for financial investment or investment in securities or foreign exchange (Forex).
The second track of CMA is to coordinate with the competent government authorities to eliminate this phenomenon by not giving licenses to the sites or companies dealing with Forex, as well as not allowing them to advertise or sponsor any events in the Kingdom. The third track is to call on those who received any invitation to participate in Forex, to inform directly the Capital Market Authority, so as to take the necessary legal procedures against the violators.
The Capital Market Authority (CMA) pointed out that a number of illegal websites have been shut down in coordination with the relevant authorities. However, due to the ease of setting up new sites, CMA confirms that the best way to eliminate this phenomenon is to raise awareness about Forex risks, and this is what CMA is doing and coordinating with SAMA and MCI.