LR-2.3 LR-2.3 Condition 3: Controllers
LR-2.3.1
Islamic bank licensees must satisfy the CBB that theircontrollers are suitable and pose no undue risks to the licensee.Islamic banks must also satisfy the CBB that their group structures do not prevent the effective supervision of theIslamic bank licensee by the CBB and otherwise pose no undue risks to the licensee.October 2007LR-2.3.2
Chapter GR-5 contains the CBB's requirements and definitions regarding
controllers .October 2007LR-2.3.3
In summary,
controllers are persons who directly or indirectly are significant shareholders in anIslamic bank licensee , or who are otherwise able to exert significant influence on theIslamic bank licensee . The CBB seeks to ensure thatcontrollers pose no significant risks to the licensee. In general terms,controllers are assessed in terms of their financial standing, their judicial and regulatory record, and standards of business and (where relevant) personal probity.October 2007LR-2.3.4
As regards group structures, the CBB seeks to ensure that these do not prevent adequate consolidated supervision being applied to financial entities within the group, and that other group entities do not pose any material financial, reputational or other risks to the licensee.
October 2007LR-2.3.5
In all cases, when judging applications from existing groups, the CBB will have regard to the reputation and financial standing of the group as a whole. Where relevant, the CBB will also take into account the extent and quality of supervision applied to overseas members of the group and take into account any information provided by other supervisors in relation to any member of the group.
October 2007
