• AU-4.3 AU-4.3 Cancellation of Authorisation

    • Licenses

      • Voluntary Surrender of a License or Closure of a Branch

        • AU-4.3.1

          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 CBB's prior written approval, before ceasing such activities. Such requests must be made in writing to the relevant Banking Supervision Director, 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.

          January 2014

        • AU-4.3.2

          Licensees must satisfy the CBB that their customers' interests are to be safeguarded during and after the proposed voluntary surrender or closure of the branch. The requirements contained in Chapter GR-6 regarding cessation of business must be satisfied.

          January 2014

        • AU-4.3.3

          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 to customers.

          January 2014

      • Cancellation

        • AU-4.3.4

          As provided for under Article 48 of the CBB Law, the CBB may amend or revoke a licence 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 these Rules or any of the CBB'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; or
          (e) The legitimate interests of the customers or creditors of a licensee required such amendment or cancellation.
          January 2014

        • AU-4.3.5

          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.

          January 2014

        • AU-4.3.6

          The CBB generally views cancellation of a license as appropriate only in the most serious of circumstances, and generally tries to address supervisory concerns through other means beforehand. Further guidance is contained in Module EN (Enforcement), regarding CBB's approach to enforcement and on the process for issuing a notice of cancellation and the recipient's right to appeal the notice.

          January 2014

        • AU-4.3.7

          Normally, where 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 new regulated microfinance services may be undertaken whilst the licensee discharges its obligations to customers.

          January 2014

      • Cancellation of Approved Person Status

        • AU-4.3.8

          In accordance with Paragraph BR-2.2.11, licensees must promptly notify the CBB in writing when a person undertaking a controlled function will no longer be carrying out that function. If a controlled function falls vacant, the licensee must appoint a permanent replacement (after obtaining CBB approval), within 120 calendar days of the vacancy occurring. Pending the appointment of a permanent replacement, the licensee must make immediate interim arrangements to ensure continuity of the duties and responsibilities of the controlled function affected. These interim arrangements must be approved by the CBB.

          January 2014

        • AU-4.3.9

          The explanation given for any such changes should simply identify if the planned move was prompted by any concerns over the person concerned, or is due to a routine staff change, retirement or similar reason.

          January 2014

        • AU-4.3.10

          The CBB may also move to declare someone as not 'fit and proper', in response to significant compliance failures or other improper behaviour by that person: see Chapter EN-8 regarding the cancellation of 'fit and proper' approval.

          January 2014