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  • TC-1 TC-1 Requirements for Controlled Functions

    • TC-1.1 TC-1.1 Controlled Functions

      • TC-1.1.1

        Individuals occupying controlled functions (refer to Paragraphs LR-1A.1.5 to 1A.1.16) in a conventional bank licensee must be qualified and suitably experienced for their specific roles and responsibilities. The controlled functions are those of:

        (a) Board Member;
        (b) Chief Executive or General Manager and their Deputies;
        (c) Chief Financial Officer and/or Financial Controller;
        (d) Head of Risk Management;
        (e) Head of Internal Audit;
        (f) Head of Shari'a Review;
        (g) Compliance Officer;
        (h) Money Laundering Reporting Officer;
        (i) Deputy Money Laundering Reporting Officer; and
        (j) Heads of other Functions.
        October 2013

      • TC-1.1.2

        A conventional bank licensee must take reasonable steps to ensure that individuals holding controlled functions are sufficiently knowledgeable about their respective fields of work to be able to guide and supervise operations that fall under their responsibilities.

        October 2013

      • TC-1.1.3

        Competence must be assessed on the basis of experience and relevant qualifications described in Appendix TC-1 as a minimum. However, the CBB reserves the right to impose a higher level of qualifications as it deems necessary.

        October 2013

      • Board Member

        • TC-1.1.4

          Board members collectively are responsible for the business performance and strategy of the conventional bank licensee, as outlined in more details in Section HC-1.2.

          October 2013

        • TC-1.1.5

          When taken as a whole, the board of directors of a conventional bank licensee must be able to demonstrate that it has the necessary skills and expertise, as outlined in Paragraph HC-1.2.10.

          October 2013

      • Chief Executive or General Manager

        • TC-1.1.6

          The chief executive or general manager and their deputies (as appropriate) are responsible for the executive management and performance of the conventional bank licensee within the framework or delegated authorities set by the Board. The scope of authority of the CEO and deputies is outlined in more detail in Subparagraph HC-6.3.2 (a).

          October 2013

      • Chief Financial Officer/ Head of Financial Control

        • TC-1.1.7

          The chief financial officer/head of financial control is responsible for directing the bank's financial function, including ensuring that the relevant accounting treatment is applied to all of the activities of the bank in a timely manner. The scope of authority of the CFO/ Head of Financial Control is outlined in more detail in Subparagraph HC-6.3.2(b).

          October 2013

      • Head of Risk Management

        • TC-1.1.8

          Heads of risk management are responsible for the management and control of all risk exposures arising from the activities of the conventional bank licensee.

          October 2013

      • Head of Internal Audit

        • TC-1.1.9

          Heads of internal audit are responsible for providing independent and objective review on the adequacy and effectiveness of the holistic internal control environment within the conventional bank licensee. The duties of the head of internal audit are outlined in more detail in Subparagraph HC-6.3.2 (d).

          October 2013

      • Head of Shari'a Review

        • TC-1.1.10

          The head of Shari'a review in a conventional bank licensee, dealing with Islamic products and services, is responsible for the examination of the extent of a conventional bank licensee's compliance, in all its activities, with the Shari'a. This examination includes contracts, agreements, policies, products, transactions memorandum and articles of association, financial statements, reports (especially internal audit and central bank inspection), circulars, etc. The objective of the Shari'a review is to ensure that the activities carried out by a conventional bank licensee do not contravene the Shari'a.

          October 2013

      • Compliance Officer

        • TC-1.1.11

          In accordance with Paragraph LR-1A.1.12, an employee of appropriate standing must be designated by the conventional bank licensee for the position of compliance officer. The duties of the compliance officer, include:

          (a) Having responsibility for oversight of the conventional bank licensee's compliance with the requirements of the CBB and other applicable laws and regulations;
          (b) Raising awareness and providing training for the conventional bank licensee's staff on compliance issues; and
          (c) Reporting to the conventional bank licensee's Board in respect of that responsibility.
          October 2013

      • Money Laundering Reporting Officer (MLRO) or Deputy Money Laundering Reporting Officer (DMLRO)

        • TC-1.1.12

          The attributes and responsibilities of the MLRO/DMLRO are described more fully in Paragraphs FC-4.1.6 and FC-4.2.1.

          October 2013

      • Heads of other Functions

        • TC-1.1.13

          Heads of other functions, where risk acquisition or control is involved, are responsible for tracking specific functional performance goals in addition to identifying, managing, and reporting critical organisational issues upstream. Certain functions require dealing directly with clients while others do not. Both categories of functions, however, require specific qualifications and experience to meet the objectives as well as compliance requirements of the conventional bank licensee.

          October 2013

        • TC-1.1.14

          For purposes of Paragraph TC-1.1.13, conventional bank licensees should contact the CBB should they require further clarification on whether a specific position falls under the definition of "Heads of other Functions".

          October 2013

    • TC-1.2 TC-1.2 Continuous Professional Development Training ("CPD")

      • CPD

        • TC-1.2.1

          All individuals holding controlled functions in a conventional bank licensee must undergo a minimum of 15 hours of CPD per annum.

          October 2013

        • TC-1.2.2

          A conventional bank licensee must ensure that an approved person undertaking a controlled function undergoes appropriate annual review and assessment of performance.

          October 2013

        • TC-1.2.3

          The level of supervision should be proportionate to the level of competence demonstrated by the approved person. Supervision will include, as appropriate:

          (a) Reviewing and assessing work on a regular basis; and
          (b) Coaching and assessing performance against the competencies necessary for the role.
          October 2013

        • TC-1.2.4

          Supervisors of approved persons should have technical knowledge and relevant managerial skills.

          October 2013

      • Record Keeping

        • TC-1.2.5

          A conventional bank licensee should, for a minimum period of five years, retain records of:

          (a) The annual training plan for each controlled function;
          (b) Materials used to conduct in-house training courses;
          (c) List of participants attending such in-house training courses; and
          (d) Results of evaluations conducted at the end of such training courses.
          October 2013