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  • GR-6 GR-6 Cessation of Business

    • GR-6.1 GR-6.1 CBB Approval

      • GR-6.1.1

        As specified in Article 50 of the CBB Law, a licensee wishing to cease to provide or suspend all or any of its licensed regulated services, completely or at any of its branches, must obtain prior written approval from the CBB.

        Amended: April 2012
        October 2010

      • GR-6.1.2

        Licensees seeking to obtain the CBB's permission to cease business must apply to the CBB in writing, in the form of a formal request together with supporting documents. Unless otherwise directed by the CBB, the following requirements must be provided in support of the request:

        (a) Full details of the business to be terminated;
        (b) The rationale for the cessation;
        (c) How the licensee proposes to cease business;
        (d) Notice of an Extraordinary Meeting setting out the agenda to discuss and approve the cessation, and inviting the CBB for such meeting;
        (e) Evidence that the proposed cessation has been duly authorised by the licensee (such as a certified copy of a Board resolution approving the cessation);
        (f) Formal request to the CBB for the appointment of a liquidator acceptable to the CBB;
        (g) A cut-off date by which the licensee will stop its operations;
        (h) If the licensee wishes to cease its whole business, confirmation that the licensee will not enter into new business with effect from the cut-off date;
        (i) Once the CBB has given its approval to an application to cease business, the licensee must publish a notice of its intention to cease business in two local daily newspapers (one in Arabic, the other in English). Notices must also be displayed in the premises (including any branch offices) of the licensee concerned. These notices must be given not less than 30 calendar days before the cessation is to take effect, and must include such information as the CBB may specify;
        (j) The audited accounts of the licensee as of the last date on which it stopped operations. The commencement of such accounts should be the beginning of the financial year of the licensee; and
        (m) The final liquidator's report of the licensee.
        October 2010

      • GR-6.1.3

        Licensees intending to apply to cease business are advised to contact the CBB at the earliest possible opportunity, prior to submitting a formal application, in order that the CBB may determine the nature and level of documentation to be provided and the need for an auditor or other expert opinion to be provided to support the application. The documentation specified in Paragraph GR-6.1.2 may be varied by the CBB, depending on the nature of the proposed cessation, such as the materiality of the business concerned and its impact on customers.

        October 2010

      • GR-6.1.4

        Approval to cease business will generally be given where adequate arrangements have been made to offer alternative arrangements to any affected customers. The CBB's approval may be given subject to any conditions deemed appropriate by the CBB. In all cases where additional requirements are imposed, the CBB shall state the reasons for doing so.

        October 2010

      • GR-6.1.5

        The notice referred to in Subparagraph GR-6.1.2 (i) must include a statement that written representations concerning the liquidation may be submitted to the CBB before a specified day, which shall not be later than thirty calendar days after the day of the first publication of the notice. The CBB will not decide on the application until after considering any representations made to the CBB before the specified day.

        Amended: April 2012
        October 2010

      • GR-6.1.6

        Upon satisfactorily meeting the requirements set out in GR-6.1.2, the licensee must surrender the original license certificate issued by the Licensing Directorate at the time of establishment, and submit confirmation of the cancellation of its Commercial Registration from the Ministry of Industry and Commerce.

        Amended: April 2020
        Added: October 2010

      • GR-6.1.7

        Where the CBB has given its approval to cancel or amend a license, then it will also publish its decision in the Official Gazette, as well as in two local daily newspapers (one in Arabic, the other in English), once this decision has been implemented.

        Amended: April 2012
        October 2010

      • GR-6.1.7A

        The publication cost of the notices referred to in Paragraph GR-6.1.7 is to be met by the licensee concerned.

        Added: April 2012

      • GR-6.1.8

        The licensee must continue to comply with all applicable CBB requirements until such time as it is formally notified by the CBB that its obligations have been discharged.

        October 2010

      • GR-6.1.9

        A licensee in liquidation must continue to meet its contractual and regulatory obligations to customers and creditors.

        October 2010

      • GR-6.1.9A

        If no objections to the liquidation are upheld by the CBB, the CBB may then issue a written notice of approval for the surrender of the license.

        Added: April 2012

      • GR-6.1.10

        If a licensee applies to the CBB for voluntary surrender of its authorisation, it must ensure that suitable arrangements are in place for insurance coverage, to continue in respect of any unreported claims arising from past transactions, in accordance with Rule GR-7.1.7.

        October 2010

      • GR-6.1.11

        Upon satisfactorily meeting the requirements set out in GR-6.1.2, the licensees must surrender the original license certificate issued by the Licensing Directorate at the time of establishment, and submit confirmation of the cancellation of its commercial registration from the Ministry of Industry, Commerce and Tourism.

        Amended: April 2020
        Added: October 2016