The Standing State Committee Warns against the Unlicensed and Illegal Activities of Forex
The Standing State Committee, formed by the Supreme Royal Order, has begun to raise awareness and warn against dealing with the illegal securities at the unlicensed foreign exchange market (Forex). The said committee has been holding meetings to develop extensive awareness campaign to address this illegal phenomenon.
The Standing State Committee, chaired by the Capital Market Authority, includes representatives from the Ministry of Interior, Ministry of Culture and Information, Ministry of Commerce and Investment, the Saudi Arabian Monetary Agency. The formation of this committee comes as a result of the overwhelming phenomenon of marketing and investment in Forex activities, which involve mostly fraud and deception. It is considered one of the modern methods that exploits the lack of knowledge of a large number of dealers in the rules and regulations of the capital market. This phenomenon exploits the desire of a number of people for quick profit, without paying attention to the risks of such practices or how far they are legal.
In accordance with the Supreme Royal Order, the Standing State Committee shall coordinate with the relevant government authorities to eliminate this phenomenon, including the General Organization for Technical and Vocational Training, the General Authority for Entertainment, the General Authority for Sport and the National Program for Exhibitions and Conferences. The said committee will work with the competent government authorities to eliminate and eradicate this phenomenon by not giving licenses for sites or for the companies dealing with such illegal activities, besides not allowing those parties to advertise or sponsor any events in the Kingdom.
In this regard, the Standing Committee stressed the need for the public to exercise utmost caution and warning against the risk of investing, contributing, dealing or trading any amounts in any securities or foreign exchange activities with any person, persons, institutions, companies, Web sites, whether inside or outside the Kingdom (including the Social Media), without ascertaining their regularity and whether they obtain the necessary official approvals, licenses or not, from the official authorities in the Kingdom of Saudi Arabia.
The Standing Committee warns those dealing with securities and the public against the dangers of dealing with suspicious websites whose jobs may involve irregular or illegal activities. They used to promote, through direct telephone calls or through online advertisements and social media, investment opportunities and promises of financial gain and fast enrichment. This may lead to fraud, deception and losses.
The Standing Committee calls upon the targeted persons, who receive such offers from any parties in the Kingdom, to report that directly through the official website of the Saudi Arabian Monetary Agency and the Capital Market Authority, so that to take the necessary legal procedures against such illegal activities.
The Standing Committee would like to affirm that the government authorities, in charge of investment in the financial sector, provide on their websites the licensed parties that are allowed to practice financial activities in the Saudi Capital Market. Therefore, it is better and safer for those interested in dealing with securities to deal with such official and well known institutions, since they are subject to supervision and control by the relevant official authorities in the Kingdom.