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  • TC-2 TC-2 General Requirements

    • TC-2.1 TC-2.1 Recruitment and Assessing Competence

      • Recruitment and Appointment

        • TC-2.1.1

          If an Islamic bank licensee recruits or promotes an individual to undertake a controlled function, it must first file Form 3 (Approved Persons) with the CBB and obtain the express written approval of the CBB for that person to occupy the desired position. In its application, the Islamic bank licensee must demonstrate to the CBB that full consideration has been given to the qualifications and core competencies for controlled functions in Appendix TC-1. (See Article 65(b) of the CBB Law and Paragraph LR-2.3.1).

          October 2013

        • TC-2.1.2

          Islamic bank licensees should refer to Module LR (Licensing Requirements) providing detailed requirements on the appointment of individuals occupying controlled functions (approved persons).

          October 2013

        • TC-2.1.3

          An Islamic bank licensee proposing to recruit an individual has to satisfy itself, of his/her relevant qualifications and experience. The Islamic bank licensee should:

          (a) Take into account the knowledge and skills required for the role, in addition to the nature and the level of complexity of the controlled function; and
          (b) Take reasonable steps to obtain sufficient information about the individual's background, experience, training and qualifications.
          October 2013

      • Record Keeping

        • TC-2.1.4

          An Islamic bank licensee must make and retain records of its recruitment procedures for a minimum period of five years. Such procedures should be designed to adequately take into account proof of the candidates' knowledge and skills and their previous activities and training.

          October 2013

        • TC-2.1.5

          In addition to recruitment procedures in Paragraph TC-2.1.4, the Islamic bank licensee must retain the recruitment records of approved persons for a minimum period of five years following termination of their services or employment with the bank. Such records must include, but are not limited to, the following:

          (a) Results of the initial screening;
          (b) Results of any employment tests;
          (c) Results and details of any interviews conducted;
          (d) Background and references checks; and
          (e) Details of any professional qualifications.
          October 2013

      • Assessing Competence

        • TC-2.1.6

          Islamic bank licensees must not allow an individual to undertake or supervise controlled functions unless that individual has been assessed by the Islamic bank licensee as competent in accordance with this Section.

          October 2013

        • TC-2.1.7

          In determining an individual's competence, Islamic bank licensees may assess if the person is fit and proper in accordance with Chapter LR-1A.

          October 2013

        • TC-2.1.8

          Islamic bank licensees must assess individuals as competent when they have demonstrated the ability to apply the knowledge and skills required to perform a specific controlled function.

          October 2013

        • TC-2.1.9

          The assessment of competence will be dependent on the nature and the level of complexity of the controlled function. Such assessment of competence of new personnel may take into account the fact that an individual has been previously assessed as competent in a similar controlled function with another Islamic bank licensee.

          October 2013

        • TC-2.1.10

          If an Islamic bank licensee assesses an individual as competent in accordance with Paragraph TC-2.1.8 to perform a specific controlled function, it does not necessarily mean that the individual is competent to undertake other controlled functions.

          October 2013

        • TC-2.1.11

          An Islamic bank licensee should use methods of assessment that are appropriate to the controlled function and to the individual's role.

          October 2013

      • Record Keeping

        • TC-2.1.12

          An Islamic bank licensee must, for a minimum period of five years, make and retain updated records of:

          (a) The criteria applied in assessing the ongoing and continuing competence; and
          (b) How and when the competence decision was arrived at.
          October 2013

        • TC-2.1.13

          For purposes of Paragraph TC-2.1.12, the record keeping requirements apply to both current employees as well as to employees following termination of their services or employment with the bank, for a minimum period of five years.

          October 2013

    • TC-2.2 TC-2.2 Training and Maintaining Competence

      • TC-2.2.1

        An Islamic bank licensee must annually determine the training needs of individuals undertaking controlled functions. It must develop a training plan to address these needs and ensure that training is planned, appropriately structured and evaluated.

        October 2013

      • TC-2.2.2

        The assessment and training plan described in Paragraph TC-2.2.1 should be aimed at ensuring that the relevant approved person maintains competence in the controlled function. An individual can develop skills and gain experience in a variety of ways. These could include on-the-job learning, individual study, and other methods. In almost every situation, and for most individuals, it is likely that competence will be developed most effectively by a mixture of training methods.

        October 2013

      • TC-2.2.3

        The training plan of Islamic bank licensees must include a programme for continuous professional development training ('CPD') for their approved persons.

        October 2013

      • TC-2.2.4

        Approved persons may choose to fulfil their CPD requirements by attending courses, workshops, conferences and seminars at local or foreign training institutions.

        October 2013

      • TC-2.2.5

        The annual training required under Paragraph TC-2.2.1 must also include the quarterly updates, if any, to the CBB Volume 2 (Islamic Banks) Rulebook, in areas relevant to each controlled function.

        October 2013

      • TC-2.2.6

        Islamic bank licensees should maintain appropriate training records for each individual. Licensees should note how the relevant training relates to and supports the individual's role. Training records may be reviewed during supervisory visits to assess the Islamic bank licensee's systems and to review how the Islamic bank licensee ensures that its staff are competent and remain competent for their roles.

        October 2013

      • Maintaining Competence

        • TC-2.2.7

          An Islamic bank licensee must make appropriate arrangements to ensure that approved persons maintain competence.

          October 2013

        • TC-2.2.8

          An Islamic bank licensee should ensure that maintaining competence for an approved person takes into account:

          (a) Application of technical knowledge;
          (b) Application and development of skills; and
          (c) Any market changes and changes to products, legislation and regulation.
          October 2013

        • TC-2.2.9

          An Islamic bank licensee may utilise the CPD schemes of relevant professional bodies to demonstrate compliance with Paragraph TC-2.2.1. In-house training, seminars, conferences, further qualifications, product presentations, computer-based training and one-to-one tuition may also be considered to demonstrate compliance with Paragraph TC-2.2.1.

          October 2013

      • Record Keeping

        • TC-2.2.10

          An Islamic bank licensee must, for a minimum period of five years, make and retain records of:

          (a) The criteria applied in assessing continuing competence;
          (b) The annual assessment of competence; and
          (c) Record of CPD hours undertaken by each approved person.
          October 2013

    • TC-2.3 TC-2.3 Transitional Period

      • TC-2.3.1

        The requirements of this Module for Islamic bank licensees are effective from the issuance date of this Module.

        October 2013

      • TC-2.3.2

        New applications for approved persons are subject to the requirements of this Module (See Paragraph TC-B.1.4).

        October 2013

      • TC-2.3.3

        Approved persons occupying controlled functions at the time this Module is issued will be grandfathered and not subject to the requirements of this Module, with the exception of CPD requirements in Paragraph TC-1.2.1 and Paragraphs BR-1.1.4(m) and BR-1.2.3(g). However, should the approved person move to another controlled function, Paragraph TC-2.3.4 will apply.

        Amended: April 2017
        October 2013

      • TC-2.3.4

        In instances, where an approved person in one Islamic bank licensee moves to another Islamic bank licensee and occupies the same function, the CBB will exercise its discretion on whether to grandfather such approved person from the required qualifications and competencies outlined in Appendix TC-1 into the new Islamic bank licensee. The grandfathering criteria used by the CBB will include a comparison of the scope and size of both positions. This will also apply in instances where an approved person in one Islamic bank licensee moves from one department to another within the same Islamic bank licensee.

        October 2013

      • TC-2.3.5

        Approved persons holding the Chief Financial Officer/ Head of Financial Control position up until 31st January 2019 are exempted from the requirement of holding Certified Islamic Professional Accountant Certificate (CIPA) from AAOIFI in Appendix TC-1. However, appointments to such a role from 1st February 2019 onwards will be required to meet all the qualification requirements for such position in Appendix TC-1.

        Amended: April 2020
        Added: January 2019