LR-3.3 LR-3.3 Withdrawal of a License or Closure of a Branch
Voluntary Surrender of a License or Closure of a Branch
LR-3.3.1
In accordance with Article 50 of the CBB Law, all requests for the voluntary surrender of a license or closure of a branch are subject to the CBB's prior written approval, before ceasing such activities. Such requests must be made in writing to the Executive Director of Banking Supervision, setting out in full the reasons for the request and how the voluntary surrender of the license or branch closure is to be carried out.
Amended: October 2011
October 2007LR-3.3.2
Islamic bank licensees must satisfy the CBB that theircustomers' interests are to be safeguarded during and after the proposed voluntary surrender or closure of the branch. The requirements contained in Chapter GR-7 regarding cessation of business must be satisfied.Amended: October 2011
October 2007LR-3.3.3
The CBB will only approve a voluntary surrender where it has no outstanding regulatory concerns and any relevant
customers ' interests would not be prejudiced. A voluntary surrender will not be accepted where it is aimed at pre-empting supervisory actions by the CBB. Also, a voluntary surrender will only take effect once the licensee, in the opinion of the CBB, has discharged all its regulatory responsibilities tocustomers .October 2007Cancellation of a License by the CBB
LR-3.3.3A
As provided for under Article 48 (c) of the CBB Law, the CBB may itself move to cancel a license. The CBB generally views the cancellation of a license as appropriate only in the most serious of circumstances, and generally tries to address supervisory concerns through other means beforehand. See also Chapter EN-9, regarding the cancellation or amendment of licenses, including the procedures used in such instances and the licensee's right to appeal the formal notice of cancellation issued by the CBB.
October 2011LR-3.3.4
Cancellation of a license requires the CBB to issue a formal notice of cancellation to the person concerned. The notice of cancellation describes the CBB's rationale for the proposed cancellation, as specified in Article 48 (d) of the CBB Law.
Amended: July 2012
Amended: October 2011
October 2007LR-3.3.5
[This Paragraph was deleted in October 2011.]
Deleted: October 2011LR-3.3.6
Where the cancellation of a license has been confirmed by the CBB, the CBB will only effect the cancellation once a licensee has discharged all its regulatory responsibilities to
customers . Until such time, the CBB will retain all its regulatory powers with regards to the licensee, and will direct the licensee such that no newregulated Islamic banking services may be undertaken whilst the licensee discharges its obligations tocustomers .Amended: July 2012
Amended: October 2011
October 2007