Chapter 6 Chapter 6 Control of Business Transfers
Article (66) Application to Transfer Business(a) A Licencee shall not transfer any banking or insurance business to others before an approval from the Central Bank.(b) A Licencee who desires to transfer all or any part of its business referred to in the preceding paragraph, shall make an application to the Central Bank in the form prepared by the Central Bank for such purpose.(c) A Transfer of Business application shall be published by the Central Bank in the Official Gazette and also in two daily newspapers published in the Kingdom one in Arabic and one in English. The publication should include a call to the concerned parties to submit any objections to the Central Bank within three months from the date of publication.(d) The Central Bank shall consider the objections referred to in the preceding paragraph before taking any action on the application for transfer.
Article (67) Decision on Application for Business Transfer(a) The Central Bank shall determine the procedure of processing applications for business transfer.(b) The following shall apply in order to approve a business transfer:1. The business, subject of transfer, shall not be prohibited by the Central Bank.2. The Transfer of Business shall not cause damages to the interests of the licencee's customers or creditors.3. The transferee must be licensed to carry out the business in the place to which it is to be transferred.4. The Central Bank must be satisfied that the Transfer of Business is appropriate under relevant regulations issued in this respect.(c) The Central Bank shall give its approval to a Transfer of Business if the application satisfies the requirements set in the preceding paragraph. Such approval may be given subject to any conditions deemed appropriate by the Central Bank.(d) The decision of the Central Bank on a Transfer of Business shall be published in the Official Gazette as well as in Arabic and English language daily newspapers published locally. The decision shall be effective from the date set therein.(e) An applicant whose application has been turned down or who faces restrictions regarding the transfer of his business may appeal to a competent court within thirty days from the date of publishing of such decision in the official gazette.
Article (68) Transfer of Other Business
The provisions of this section of the law shall apply to the transfer of any other regulated services offered by a Licencee, other than banking and insurance services, as the Central Bank may decide in order to protect the interests of the licencee's customers and creditors.