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  • LR-3.2 LR-3.2 Variations to a License

    • LR-3.2.1

      As per Article 48 of the CBB Law of 2006, Islamic bank licensees must seek prior CBB approval before undertaking new regulated Islamic banking services.

      October 2007

    • LR-3.2.2

      Failure to secure CBB approval prior to undertaking a new regulated activity may lead to enforcement action being taken against the licensee concerned.

      October 2007

    • LR-3.2.3

      In addition to any other information requested by the CBB, and unless otherwise directed by the CBB, an Islamic bank licensee requesting CBB approval to undertake a new regulated Islamic banking service must provide the following information:

      (a) A summary of the rationale for undertaking the proposed new activities;
      (b) A description of how the new business will be managed and controlled;
      (c) An analysis of the financial impact of the new activities; and
      (d) A summary of the due diligence undertaken by the Board and management of the Islamic bank licensee on the proposed new activities.
      Amended October 2010
      October 2007

    • LR-3.2.4

      The CBB may amend or revoke a license in any of the following cases:

      (a) If the licensee fails to satisfy any of the license conditions;
      (b) If the licensee violates the terms of this regulations or any of the Volume's directives;
      (c) If the licensee fails to start business within six months from the date of the licence;
      (d) If the licensee ceases to carry out the licensed activity in the Kingdom; and
      (e) The legitimate interests of the customers or creditors of a licensee required such amendment or cancellation.
      Amended: October 2019
      Amended October 2010
      October 2007

    • LR-3.2.5

      The CBB’s procedures for amending or revoking a license are outlined in detail in the Enforcement Module (EN).

      October 2007