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  • EN-9 EN-9 Cancellation or Amendment of License

    • EN-9.1 EN-9.1 Legal Source

      • EN-9.1.1

        Article 48 of the CBB Law empowers the CBB to cancel or amend a license under certain circumstances. These include cases where a licensee has:

        (a) Failed to satisfy its license conditions;
        (b) Violated the terms of the CBB Law, or CBB Regulations or Volume 2 (Islamic Banks) Rulebook; or
        (c) Failed to start business within six months from the date of the license;
        (d) Ceased to carry out the licensed activities permitted; or
        (e) Not acted in the legitimate interest of its customers or creditors.
        Amended: October 2010
        Added: October 2007

      • EN-9.1.2

        Article 48(d) of the CBB Law also requires the CBB to give the licensee concerned reasonable time to object to any proposed cancellation or amendment of its license.

        Amended: October 2010
        Added: October 2007

    • EN-9.2 EN-9.2 CBB Policy

      • EN-9.2.1

        The CBB generally views canceling a license as appropriate only in extreme circumstances, when faced with the gravest of contraventions or when left with no other reasonable means of successfully addressing the regulatory failings in question. Cancellation or amendment of a license, however, may also be required in circumstances outside of an enforcement context, for instance because of a change in the business profile of a licensee.

        Amended: October 2010
        Added: October 2007

      • EN-9.2.2

        The criteria used by the CBB in assessing whether to seek cancellation or amendment of a license include:

        (a) The extent to which the interests of the market, its users and those who have a claim on the licensee would be best served by the cancellation or amendment of the license;
        (b) The extent to which other regulatory penalties could reasonably be expected to achieve the CBB's desired supervisory objectives;
        (c) The extent to which the licensee has contravened the conditions of its license and/or the CBB Law, including the seriousness, duration and/or frequency of the contravention(s) concerned, and the extent to which the contraventions reflect more widespread or systemic weaknesses in controls and/or management;
        (d) The extent to which the licensee has been involved in financial crime or other criminal conduct; and
        (e) The licensee's past compliance record and conduct following the contravention(s).
        Amended: October 2010
        Added: October 2007

      • EN-9.2.3

        When the CBB issues a notice of cancellation or amendment as an enforcement tool, it will only implement the actual change once it is satisfied that there are no longer any regulated activities for which it is necessary to keep the current authorisation in force. Until such time as these activities have been run off or moved to another licensee, the CBB will control these activities through other means (such as taking the licensee into administration or through issuing Directions).

        Added: October 2007

    • EN-9.3 EN-9.3 Procedure for Cancellation or Amendment of License

      • EN-9.3.1

        All proposals for canceling or amending a license are subject to a thorough review by the CBB of all relevant facts, assessed against cases and the criteria outlined in Sections EN-9.1 and EN-9.2. After being assessed at the Executive Director level, proposals are submitted to H.E. the Governor for approval.

        Amended: October 2010
        Added: October 2007

      • EN-9.3.2

        Once approved within the CBB, a formal notice of cancellation or amendment is issued to the licensee concerned. The notice of cancellation or amendment will describe the factual circumstances of the contraventions concerned, and the CBB's rationale for the proposed cancellation, as measured against the criteria outlined in Sections EN-9.1 and EN-9.2.

        Amended: October 2010
        Added: October 2007

      • EN-9.3.3

        The licensee has 30 calendar days from the date of the notice in which to lodge an appeal. The appeal should be addressed to the Board of the CBB, and copied to H.E. the Governor of the CBB.

        Added: October 2007

      • EN-9.3.4

        If an appeal is lodged, the Board of the CBB will make a final ruling within 60 calendar days of its date of issuance.

        Added: October 2007

      • EN-9.3.5

        A Licensee may appeal to a competent court within 60 calendar days of the above final ruling for a decision. The court's decision will then be final.

        Added: October 2007