Board of Directors Decision No. (46) of 2016

Article 1: Definitions For the purposes of this Decision, the following terms shall have the meanings set forth below:

• The Authority: Refers to the regulatory body overseeing the sector.
• Licensed Entity: Any institution or individual authorized to conduct regulated activities.
• Compliance: Adherence to all applicable laws, regulations, and standards issued by the Authority.

Article 2: Scope and Application This Decision applies to all licensed entities and supervised persons within the jurisdiction. It establishes the foundational regulatory framework governing operational conduct, risk management, and reporting obligations.

Article 3: Licensing and Registration Requirements No entity shall conduct regulated activities without prior written approval from the Authority. Applications must include detailed business plans, capital adequacy proofs, and governance structures. The Authority reserves the right to impose conditions or reject applications that fail to meet statutory thresholds.

Article 4: Operational and Governance Standards Licensed entities must maintain robust internal controls, independent audit functions, and qualified senior management. Risk management frameworks must align with internationally recognized standards. Regular stress testing and scenario analysis are mandatory to ensure financial resilience.

Article 5: Reporting and Disclosure Obligations Entities shall submit periodic financial, operational, and compliance reports to the Authority within prescribed deadlines. Material events, including governance changes, significant losses, or regulatory breaches, must be reported immediately. Transparency and data accuracy are strictly enforced.

Article 6: Supervision, Inspection, and Enforcement The Authority conducts routine and ad-hoc inspections to verify compliance. Non-compliant entities may face administrative fines, license suspensions, or revocation. The Authority maintains a graduated enforcement policy prioritizing corrective action while reserving punitive measures for severe or repeated violations.

Article 7: Transitional and Final Provisions Existing licensed entities shall align their operations with this Decision within the stipulated grace period. Conflicting prior directives are hereby repealed. This Decision takes effect upon publication in the official gazette and shall remain in force until amended or rescinded by the Board of Directors.

Annexes:

• Annex A: Reporting Templates
• Annex B: Capital Adequacy Calculations
• Annex C: Governance Checklist