As part of the National Campaign Against Unlicensed Financial Activities, which was launched early this year to fight fraudulent practices in financial markets, the Securities and Commodities Authority (SCA) received students from the Higher Colleges of Technology (HCT) majoring in business administration at its Dubai branch. This was also part of the SCA’s efforts to promote financial literacy, identify procedures to guard against financial fraud, and raise awareness about its supervisory role and efforts to protect investors and curb money laundering and terrorism financing practices.
A workshop was held for this purpose by representatives from the SCA’s Government Communication and International Organizations Department and Supervision and Compliance Department in the presence of administrative and faculty members from the HCT.
The workshop covered topics, including the objectives and mission of the National Campaign Against Unlicensed Financial Activities; how to fight money laundering and terrorism financing; and the international requirements, laws, and legislation introduced by the UAE in this respect.
The SCA pointed out that investment transactions in financial markets should be limited to those licensed or authorized to do so, and shared some awareness tips, notably:
• Immediately contact the SCA and the competent supervisory authorities once you learn that the company offering investment opportunities is unlicensed. People wishing to invest must make sure that the company is licensed to involve in the type of investment it is promoting by referring to the SCA’s website (www.sca.gov.as) and the other official channels.
• Beware of the fraudulent practices used by companies pretending to be licensed by the supervisory authorities, including forging fake documents and professional and commercial licenses. Investors must be careful not to engage in unlicensed financial activities to protect their savings and must make sure that the promoted financial product is licensed to be traded on the country’s financial market. They should also make sure that the licenses granted to companies match the activity or service they are promoting. Investors and members of the public should verify the validity of the information and documents they receive from the promoting companies by referring to the supervisory authorities and official channels before investing.
• Refrain from sharing personal information with or transferring funds to any entity until after it is verified as valid by referring to the supervisory authorities and official channels. Immediately contact the competent supervisory authorities once you learn that you have become the victim of fraud and beware of fraudulent emails and phone calls.
• Members of the public should not respond to phone calls promising too-good-to-be-true profits from entering into unsafe investments. They should pick the type of investment that suits them by consulting with a reliable and licensed financial advisor.
The workshop presented general definitions of money laundering and terrorism financing and how to fight them. It also reviewed the policies and internal procedure requirements that should be implemented and enforced in the context of fighting money laundering and terrorism financing. It highlighted the importance that companies create internal policies and procedures and develop a governance framework and internal lines of defense. It presented examples of warning signs that may indicate suspicious transactions or transfers and concluded with a case study.