Guided by the vision and directions of the wise leadership of the State on the keenness to develop securities sector and enhancing community awareness about the procedures that ensure protection from the fraudulent practices
The SCA prepares for launching an awareness campaign for combating unlicensed financial activities in the Sate over the first four months of the new year 2023. The campaign aims at limiting the promotion of fraudulent practices in the financial markets field and limiting the dealings to the licensed entities, which contributes to protect investors, protect the licensed financial activities from illegitimate competition and strengthen anti-money laundry.
Dr. Maryam Al Suwaidi, the SCA's CEO, said: "This campaign’s initiatives reflects the wise vision and the sound directions of the wise leadership of the State that keens to provide all kinds of support necessary to protect investors and their savings, to develop securities sector and push it to regional and global advanced and competitive levels as well as to support valid practices, protect the licensed financial activities from illegitimate competition and enhance the investment culture, which will improve the comprehensive development process of the State. This awareness campaign comes in the light of the directions of SCA’s board of directors headed by H.E. Mohamed Ali Al Shorafa by working on presenting solutions, initiatives and the supporting programs of the supervisory and regulatory role of the SCA in preserving the rights of all categories of investors and providing them with knowledge, experiences and supporting programs to enable them to take rational investment decisions.
Dr. Al Suwaidi added that launching this campaign comes within the framework of implementation of one of the SCA’s strategic plan objectives at the year of 2023, which relates to develop and execute enough measures correspond with the best practices that aim to determining and intercepting the unlicensed money transfer services, detecting and prosecuting unlicensed operators using related advanced technologies and strengthen cooperation with the law enforcement authorities. This campaign complemented the series of the procedures made by the SCA in the current stage to contribute in promoting the State’s efforts of anti-money laundering and counter-terrorism financing and to reinforce the status of securities market in the State as a safe leading financial market that is attractive for investment in order to support the growth and diversity of the national economy; as she stated that "The initiative targets the investors, entrepreneurs, workers in financial markets, the individuals working in financial services industries and the youth especially the students of schools and universities".
The SCA's CEO continued saying that: "The campaign media message focuses on strengthening the society awareness of the sound procedures that should be followed in financial market through delivering several messages to the public receiving the awareness material, most notably:
- The requirement that public should promptly report to the SCA and the concerned regulatory authority immediately after discovering that the company calling for investment is unlicensed. The individuals desiring to make investment, as a first step, shall make sure that the company is licensed for the purpose which it calls for by phone messages, social media messages, websites, etc., to invest therein. This may be checked through the SCA's website and the other approved official channels".
- The need to be alert and cautious about the fraudulent methods followed by the promoting companies and impersonating real companies licensed by the regulatory authorities along with fabricating forged documents and commercial and professional licenses, warning investors from dealing with any unlicensed financial activity in order to maintain their saving, making sure that the promoted financial product is licensed for trading in the financial markets in the State, and making sure that the licenses granted for the licensed companies are consistent with the promoted activity/ service, additionally, the investors and individuals must verify the information and documents - received by them from the promoters - through the regulatory authorities and official channels before engagement in investment with them.
- Refrain from sharing personal data or transferring money to any entity unless after verifying the information submitted thereon through the competent regulatory authorities and the official channels, along with promptly informing the competent regulatory authority immediately after discovering the exposure to any fraudulent transaction. In addition to being careful of the fraudulent messages received on email, phone calls and electronic platforms.
- The need for all the public individuals to beware of the messages promising of quick huge profits in unsecured investments. They must choose the investment type that is suitable to their capabilities in consultation with a licensed and reliable financial consultant.
The campaign uses several communications means particularly film materials (video clips - cartoon graphics) that will be published on social media, websites and internal display screens in establishments, TV talk shows, press coverage of the seminars and events, along with media releases and press interviews, publishing awareness raising guidelines in newspapers and websites, and publishing advices by short messages (SMS) and WhatsApp.
The SCA's CEO stated that the requirement to raise awareness and educate investors is becoming more important in view of the rapid developments taking place in the financial markets and the existence of several financial products; a matter that requires to keep up with them through introducing new procedures to strengthen the security of the financial markets and develop the level of the skill and knowledge for investors as well as protect and enable them to take the sound decisions. She thanked all the SCA's partners who expressed their willingness to support the campaign and to participate in achieving its goals.