The Qatar Financial Markets Authority (QFMA) Board of Directors has approved making payments for trading securities on the Qatar Stock Exchange (QSE) from the investor's bank account in Qatar or in the country of residence, according to a new amendment to the rules of combating money laundering and terrorist financing.
In a statement, QFMA said that it, periodically and whenever needed, reviews its issued legislation to ensure the continued modernisation and development of the Qatari capital market and keep it in the competitive arena compared to other regional and global markets, as well to maintain an effective legislative system that attracts investment in line with international standards and the privacy of the Qatari capital market.
In this regard, and based on the application of the Risk-Based Approach in accordance with the National Risk Assessment Relating to Money Laundering, Terrorism Financing and Proliferation Financing under the umbrella of the National Anti-Money Laundering and Terrorist Financing Committee (NAMLC), and in order to ensure the continuity of trading securities on Qatar Stock Exchange "QSE" without cash payments, as well within the requirements of Law No. (20) of 2019 on Combating Money Laundering and Terrorism Financing and its Implementing Regulations issued by Council of Ministers' Decision No. (41) of 2019, the QFMA's Board of Directors approved the amendment of Paragraph (C) of Article (4.1.2) of the AML/CFT Rules.
The paragraph C, which said the customer has a bank account at a Qatari bank, regulated and supervised by the Qatar Central Bank, through which all payments for or from the customer for trading securities are made" was amended to become "(C) the customer has a bank account at a bank in the State of Qatar or in the country of residence regulated and supervised by a regulatory authority, through which all payments for or from the customer for trading securities are made".
This mainly comes in light of the QFMA's direction and concern to facilitate procedures related to the investors' dealings from outside Qatar, as the financial payments for trading on QSE takes place through investors' bank accounts, in a way that contributes to enhancing the attractiveness of the safe investment environment in the State, and stimulating the attraction of domestic and foreign investments to the Qatari financial sector.
QFMA makes great efforts to develop legislation and an effective regulatory framework in compliance with the international standards and the privacy of the Qatari financial sector, to ensure that its framework and supervisory and regulatory approach continuously prevent and reduce the crime risks related to financial markets.