Chapter 2 Chapter 2 Procedure for Licensing, Amendment and Termination of Licences
Article (44) Application for a Licence(a) Any person who wishes to provide a Regulated Service must apply for a license from the Central Bank.(b) An application must contain such particulars and information and accompanied by such documents as specified by the Central Bank.(c) Subject to the Commercial Companies Law, the Central Bank shall issue regulations specifying the requirements for offering a licence to provide Regulated Services. Such requirements may include the legal form of the applicant, the location of its head office, the minimum capital and reserve requirements and the limits of capital adequacy requirements.(d) The Central Bank shall verify the application for a license to ensure that it satisfies all the conditions required, and it may ask for amendments or any additional information that it requires to assist with reaching its decision regarding the application. Such request shall be made within thirty days from the date of submission.(e) The Central Bank shall decide on the application within sixty days from the date of receiving the application complete with all the required information and documents.(f) The applicant may, at any time before a decision has been made about the application, withdraw his application or make amendments to any errors therein or in the supporting documents in accordance with the Regulations issued by the Central Bank in this respect.
Article (45) The Granting of a Licence(a) The Central Bank shall grant a licence to the applicant if he satisfies all the conditions set out in this law and any Regulations issued pursuant thereto.(b) The Central Bank may specify in the license the place at which the licensed Regulated Services to be provided and impose such terms and conditions on the Licencee as it deems necessary for a proper performance of the Regulated Services.(c) The Central Bank shall keep a register entitled the "Register of Licensed Financial Intuitions" on which all applications and supporting documents for licenses and any actions taken on them shall be recorded.
Article (46) Rejection of Application(a) The Central Bank shall issue a decision with the reason for rejecting an application for a licence if it does not satisfy the conditions provided for in this law or its regulations. In such case, the Central Bank shall notify the applicant in writing of the following:1. The refusal to grant the licence and the reasons for such refusal.2. The period of time during which the applicant may appeal to the Central Bank, which shall not be less than thirty days from the date of the notice.(b) The Central Bank shall decide on the appeal made by the applicant and notify him of its decision within thirty days from the date of submission of the appeal. Where an appeal has been refused, the applicant may re-appeal to the Board within thirty days from the date on which he was notified of the refusal, or upon the expiry of the deadline on which he was supposed to receive a decision on his appeal. The decision of the Board shall be final and binding. The applicant shall be notified by the Board's decision during a period not exceeding 90 days from date of his appeal to the Board.(c) The applicant whose appeal has been rejected may appeal to a competent court in the Kingdom within sixty days from the date of notification of such decision or the expiry of the deadline specified for the decision and no notification was received.
Article (47) Publication of the Decision to Grant a Licence(a) The Central Bank shall publish its decision to grant a licence in the Official Gazette and in two local newspapers, one published in Arabic and the other in English.(b) The Licencee must at all times keep an approved copy of the licence displayed in a visible place on the Licencee's premises in the Kingdom.
Article (48) Amendment and Revocation of Licence(a) The Central Bank may, upon a request by a Licencee, amend the conditions of a licence in any of the following cases:1. Adding a Regulated Service to other licensed services.2. Amending or canceling of one or more of the terms and conditions of the licence under Article 45 (b) of this law.3. Removing a licensed Regulated Service from those for which a person is licensed(b) The Central Bank may not amend the licence conditions in accordance with the provisions of (2) and (3) above unless it is satisfied that the Licencee is able to meet the obligations imposed on him under the amended terms of the licence.(c) The Central Bank may amend or revoke a licence under paragraph (a) above in any of the following cases:1. If the Licencee fails to satisfy any of the license conditions.2. If the licencee violates the terms of this law or the regulations or any of the license rules.3. If the Licencee fails to start business within six months from the date of the licence.4. If the Licencee ceases to carry out the licensed activity in the Kingdom.5. If the legitimate interests of the customers or creditors of a licencee required such amendment or cancellation.(d) The Central Bank shall, prior to the cancellation or amendment of a licence according to the provisions of the preceding paragraph, notify the Licencee in writing stating the reasons for such cancellation or amendment, date of validity and the deadline for appealing which shall not be less than thirty days from the date of notification.(e) The Central Bank shall decide on any appeal made in accordance with the previous paragraph and notify the appellant of the decision taken in that respect within sixty days from the date on which the appeal was made.(f) The decision to cancel or amend a licence takes immediate effect from the date stated in the notice.(g) The Central Bank may, in exceptional cases that require no delay, cancel or amend a licence without following the procedures set forth in paragraph (d) of this Article. This shall not affect the right of the Licencee to appeal within thirty days of notification of such decision. The Central Bank shall decide on the appeal and notify the appellant of its decision within sixty days of submission.(h) An appeal against a decision to cancel or amend a licence may be made to a competent court within sixty days from the date of notifying the Licencee of such decision, or upon the expiry of the period specified in the preceding paragraph, for a decision on the appeal, without receiving a notification.
Article (49) Publication of the Decision to Cancel or Amend a Licence(a) The Central Bank shall publish its decision to cancel or amend a licence in the Official Gazette as well as in two local daily newspapers, one published in Arabic and the other in English.(b) The Central Bank may publish its decision on such cancellation or amendment using any other means it considers appropriate, including electronic means.
Article (50) Case of Carrying on Business(a) A Licencee shall not cease to provide any or all of the licenced regulated services, completely or at any of its branches, without obtaining a written approval from the Central Bank.(b) The Central Bank may restrict its approval referred to in the preceding paragraph upon such conditions, as it deems necessary.(c) The Licencee shall publish a notice of its intention to cease to provide any regulated service completely or at any of its branches, in two daily newspapers one in Arabic and the other in English, published in the Kingdom. Such notice shall be given, after receiving the approval of the Central Bank, not less than thirty days before the actual cessation is to take effect, and shall include such information as the Central Bank may specify.
Article (51) Place of Business(a) No Licencee may, without a prior written approval of the Central Bank:1. Open a new place of business in the Kingdom.2. Close or change an existing place of business in the Kingdom.3. Open a new place of business abroad if the licensee is incorporated in the Kingdom.(b) The Central Bank may restrict its approval stipulated in the preceding paragraph, to any other conditions, as it may deem necessary.