New CMA Circular Regarding AML-CFT Annual Reporting

Date of issuance 8 January 2017,
Deadline 1 March 2017

On 8/1/2017, Capital Markets Authority (CMA) issued circular No. (2) Of 2017 on Licensed Persons’ Annual Report. The circular highlighted the importance of compliance with the provision of Article (7-5) of Module Sixteen of the Executive Bylaws of Law No. (7) of 2010 on preparing an annual report by the compliance officer to the board of the licensed person.

The said report should include all actions taken to implement the internal policies, procedures and controls and any proposal for increasing the effectiveness and efficiency of the procedures, in addition to submitting a copy of the report to the CMA no later than 1st of March.

Capital Markets Authority (CMA): Reminding Companies to submit their Annual Reports

Kuwait Capital Markets Authority issued Circular No. 1 of 2016 dated 5 January 2016 to the Chairmen of Board of Directors, regarding the annual report of the licensed persons. The Circular reads:

“We would like to draw your attention to the provisions of Article 5-7 of Volume XVI of the Executive Regulations of Law No. 7 of 2010 concerning the Establishment of the Capital Markets Authority and the Regulation of the Securities Activity, as amended, which emphasizes that Compliance Officers shall prepare an annual report to the Board of Directors of the licensed persons. The report shall include all actions taken to implement the policies, procedures, internal controls as well as any proposals to enhance the effectiveness and efficiency of such actions. In addition, a copy of such report shall be submitted to the Capital Markets Authority.

Therefore, you should abide by the above mentioned provisions and provide the Offsite Supervision Department at CMA with that report, inclusive of all actions taken throughout the reporting year, latest by 1st of March of each year.”