Regulatory Alerts2020-04-24
Major Acquisitions Regulation
The Central Bank of the United Arab Emirates issued the Major Acquisitions Regulation to establish a prudential framework for evaluating banks' approaches to significant acquisitions. The rule mandates prior written approval for any acquisition exceeding 5% of total regulatory capital and requires detailed submissions regarding financial impact, risk management, and due diligence. It further imposes strict obligations on boards to implement comprehensive risk policies, enhances due diligence for cross-border transactions, and grants the regulator authority to revoke approvals based on misleading information or failure to meet assessment criteria.
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