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  • 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