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  • UG-1 UG-1 Rulebook status and application

    • UG-1.1 UG-1.1 Legal basis

      • UG-1.1.1

        Volume 2 (Islamic Banks) of the BMA Rulebook is issued by BMA pursuant to Amiri Decree Law No. 23 of 1973 (the "BMA Law").

    • UG-1.2 UG-1.2 Status of provisions

      • UG-1.2.1

        The contents of the Rulebook have the formal status either of Rules or Guidance.

      • UG-1.2.2

        Rules have a binding effect. If a licensee breaches a Rule to which it is subject, it is liable to enforcement action by BMA and, in certain cases, criminal proceedings by the Office of the Public Prosecutor.

      • UG-1.2.3

        Guidance is not binding. It is material that helps inform a particular Rule or set of Rules, or provides other general information. Where relevant, compliance with Guidance will generally lead the BMA to assess that the business has complied with the rule(s) to which the Guidance relates. Conversely, failure to comply with Guidance will generally be viewed by the BMA as tending to suggest breach of a Rule.

      • UG-1.2.4

        The status of each paragraph within the Rulebook can be identified by its text format, as follows:

        (a) Rules are in bold, font size 12. The paragraph reference number is also highlighted in a coloured box.
        (b) Guidance is in normal type, font size 11.

      • UG-1.2.5

        The Agency's interpretation of all Rules and Guidance in this Volume is final.

    • UG-1.3 UG-1.3 Application

      • UG-1.3.1

        Rules and Guidance contained in Volume 2 of the BMA Rulebook apply to all Islamic licensed banks subject to the provisions of the BMA Law, except for representative offices of banks which are subject to the relevant requirements contained in Volume 5 (Specialised Firms) and conventional banks which are covered in Volume 1.

      • UG-1.3.2

        Where relevant, individual sections of Volume 2 may identify which specific Rules and Guidance apply to particular types of banking licensee.

    • UG-1.4 UG-1.4 Effective date

      • UG-1.4.1

        Version 1 of Volume 2 (Islamic Banks) of the BMA Rulebook was first issued in January 2005. It replaces all regulations previously issued with respect to Islamic banks.

      • UG-1.4.2

        For reference, these superseded regulations are listed in the Rulebook, under the 'Regulation history' section of the appropriate Module in each Volume. The list includes the reference number of the previously superseded circular or regulation, its date and subject heading.