المادة 3: Clients Acceptance

Article 3: Clients Acceptance

a) The capital market institution, before accepting any client and opening an investment account for him, must ensure his compliance with all of his obligations stated in the Capital Market Law and its Implementing Regulations, the Anti-Money Laundering Law and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law and its Implementing Regulations.

b) The capital market institution, when accepting any client, must not provide any services related to dealing, managing, custody, or investment through securities crowdfunding platforms activities until obtaining the client’s approval on an investment account opening agreement and documenting such approval and opening an investment account to that client. The investment account opening agreement must contain all the information mentioned in Article (4) of these Instructions.

c) The capital market institution may rely on a third party to carry out the customer due diligence measures in accordance with the related provisions of the Anti-Money Laundering Law and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law and its Implementing Regulations for any person for whom these Instructions permit the opening of an investment account.

d) The capital market institution must verify the actual relationship between the clients and the natural persons who open or operate investment accounts on their behalf such as guardians, agents, trustees, or authorised signatories in accordance with the relevant provisions in the Anti-Money Laundering Law and its Implementing Regulations, and the Combating-Terrorism Crimes and its Financing Law and its Implementing Regulations.

e) In all situations in which these Instructions require the verification of documents, data, or information, such verification must be done through documents, data or information from a reliable and independent source.

f) Depending on the risk profile of a particular client, the capital market institution, when carrying out the customer due diligence measures, must determine if original copies of any of the documents should be checked in order to verify their validity.

g) The capital market institution, when using technology means to open the investment account, must carry out the customer due diligence measures depending on the level of risks involved in that, and according to any requirement that the Authority specifies.

h) The capital market institution must not open an investment account for an individual establishment, except for organizations licensed under the Law of Civil Society Associations and Organizations, for which an investment account is opened pursuant to paragraph (d) of Article 7 of these instructions, and establishments owned by endowments, for which an investment account is opened pursuant to paragraph (e) of Article 7 of these instructions.

i) Without prejudice to the terms of business with clients’ requirements mentioned in the Capital Market Institutions Regulations, the capital market institution is exempted from implementing paragraph (b) of this Article when providing any services related to dealing for its client where such client appoints an independent custodian. ماع - Public