Law No. 13 of 2012 Issuing the Law of the Central Bank of Qatar and Regulating Financial Institutions

Law No. (13) of 2012 Issuing the Law of the Central Bank of Qatar and Regulating Financial Institutions

We, Hamad bin Khalifa Al Thani, Emir of the State of Qatar,

Having reviewed the Constitution, And the Emirate Law No. (1) of 1966 concerning supervision and control over insurance companies and agents, and its amendments, And Law No. (13) of 2000 concerning the regulation of non-Qatari capital investment in economic activities, and its amendments, And the Commercial Companies Law issued by Law No. (5) of 2002, and its amendments, And Law No. (18) of 2002 concerning public debt and Islamic securities, and its amendments, And Law No. (30) of 2004 concerning the regulation of the auditing profession, And the Qatar Financial Centre Law issued by Law No. (7) of 2005, and its amendments, And the Commercial Law issued by Law No. (27) of 2006, amended by Law No. (7) of 2010, And the Emirate Law No. (33) of 2006 concerning the Central Bank of Qatar, and its amendments, And Law No. (8) of 2008 concerning consumer protection, amended by Emirate Law No. (14) of 2011,

And the Anti-Money Laundering and Combating the Financing of Terrorism Law issued by Law No. (4) of 2010, And Law No. (8) of 2012 concerning the Qatar Financial Markets Authority, And upon the proposal of the Governor of the Central Bank of Qatar, And upon the draft law submitted by the Council of Ministers, And after obtaining the opinion of the Shura Council,

Have decided the following Law:

Article (1) The provisions of the Law of the Central Bank of Qatar and Regulating Financial Institutions, attached to this Law, shall be enforced.

Article (2) In matters not specifically addressed in the attached Law, the substantive provisions applicable to each of the institutions, works, and financial services mentioned therein shall apply, according to the laws regulating them.

Article (3) All parties subject to the provisions of the attached Law shall regularize their status in accordance with its provisions within six months from the date of its enforcement. The Governor of the Central Bank of Qatar may extend this deadline for one or more similar periods.

Article (4) The Governor of the Central Bank of Qatar shall issue the regulations, decisions, systems, instructions, and circulars necessary to implement the provisions of the attached Law. Until their issuance, the currently applicable regulations, decisions, systems, instructions, and circulars shall remain in force, insofar as they do not conflict with the provisions of the attached Law.

Article (5) The Emirate Law No. (1) of 1966 and the Emirate Law No. (33) of 2006 mentioned above are repealed, as is every provision that conflicts with the provisions of the attached Law.

Article (6) All competent authorities shall implement this Law within their respective jurisdictions. It shall be published in the Official Gazette.

Hamad bin Khalifa Al Thani Emir of the State of Qatar

Issued at the Diwan Amiriyat on: 18/1/1434 AH Corresponding to: 2/12/2012 AD

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Law of the Central Bank of Qatar and Regulating Financial Institutions

Chapter One Definitions Article (1)

In the application of the provisions of this Law, the following words and expressions shall have the meanings indicated alongside each of them, unless the context requires otherwise:

The Ministry: The Ministry of Economy and Finance. The Minister: The Minister of Economy and Finance. The Bank: The Central Bank of Qatar. The Board: The Board of Directors of the Bank. The Governor: The Governor of the Bank. The Competent Administration: The administrative unit competent within the Bank, the identification of which shall be issued by a decision of the Governor. The Committee: The Dispute Resolution Committee established pursuant to Article (190) of this Law. The Centre: The Qatar Credit Information Centre. Financial Institutions: Any bank, insurance company, reinsurance company, investment company, financing company, exchange office, representative office, or external unit, and other financial institutions whose identification and regulation of their activities shall be issued by a decision of the Bank, and which are licensed in accordance with the provisions of this Law to conduct all or part of the banking business, insurance and reinsurance business, investment and financing business, exchange business, and other financial works, services, and activities specified by the Bank. Islamic Financial Institutions: Banks, insurance and reinsurance companies, investment and financing companies, and other financial institutions whose identification and regulation of their activities shall be issued by a decision of the Bank, and which are licensed in accordance with the provisions of this Law to conduct all or part of the banking business, insurance and reinsurance business, investment and financing business, and other financial works, services, and activities specified by the Bank, in accordance with the provisions of Islamic Sharia. Banks: Any legal person licensed in accordance with the provisions of this Law to conduct all or part of the banking, investment, and developmental business in the State. Islamic Banks: Banks licensed in accordance with the provisions of this Law to conduct all or part of the banking, investment, and developmental business, in accordance with the provisions of Islamic Sharia. Specialized Banks: Banks licensed in accordance with the provisions of this Law to conduct all or part of the banking, investment, and developmental business, primarily in specific economic sectors. Investment Companies: Any company licensed in accordance with the provisions of this Law to conduct all or part of the investment business without accepting deposits. Financing Companies: Any company licensed in accordance with the provisions of this Law to conduct financial financing business, granting various consumer credits and loans, or any specialized financing business specified by the Bank. Exchange Offices: Any company licensed in accordance with the provisions of this Law to conduct exchange business, without accepting deposits. External Units: Any investment company, or branch of a foreign investment company, and any bank or branch of a Qatari or foreign bank, licensed in accordance with the provisions of this Law to conduct all or part of the banking or investment business in the State, without accepting deposits. Representative Offices: Offices whose activity is limited to representing foreign banks and investment companies in the State, without having the right to accept deposits or conduct banking, investment, or exchange business. Consulting Institutions: Institutions that provide advice on securities or any other investment or financial instruments, and are licensed by the Bank. Insurance or Reinsurance Companies: Any joint-stock company licensed under the provisions of this Law to conduct insurance or reinsurance or Takaful or re-Takaful operations. Currency: Cash notes, coins, digital currency, and other monetary instruments issued by a decision of the Bank. Financial Services: Works provided by financial institutions, including Islamic financial institutions, the identification and regulation of the provision of each of which shall be issued by a decision of the Bank. Deposits: Amounts deposited with interest or return or without them after agreement on repayment on demand or for a fixed term or in the circumstances agreed upon, including deposits consistent with the provisions of Islamic Sharia. Credit Information: Information related to a person's creditworthiness and reputation, as determined by the regulations and decisions issued by the Bank. Banking Business: Accepting deposits and other refundable funds, granting credit facilities, discounting, buying, and selling securities, trading in monetary instruments, money, foreign exchange, and precious metals, issuing checks, credit cards, and other payment instruments, issuing guarantees and commitments, and any other works specified by the Bank. Investment Business: Investing for others, practicing brokerage and financial agency, arranging public subscriptions, providing custody and safekeeping services, participating in the issuance of shares and other securities, managing portfolios and investment funds, trading in monetary instruments, money, foreign exchange, and precious metals, providing advice on capital markets and services related to the merger, acquisition, and sale of companies, and any other works specified by the Bank. Exchange Business: Exchanging different currencies and trading in them, in traveler's checks, and in gold bullion, issuing remittances from licensed correspondents, and any other works specified by the Bank. Insurance: A contract under which the insurer commits to paying the insured or the beneficiary who stipulated the insurance for their benefit, a sum of money, a periodic income, or any other financial compensation, in the event of the occurrence of the accident or the realization of the risk specified in the contract, in consideration of a premium or installments or any other financial amount paid by the insured to the insurer. Reinsurance: The transfer by an insurance company of part or all of the liabilities arising from the risk it has insured to a reinsurance company, according to the terms agreed upon between them. Insurance Policy: The insurance contract concluded between the insurer and the insured, containing the provisions, conditions, obligations, and rights arising for the parties to the contract. Holder of the Insurance Policy: The legal owner of the insurance policy at a specific time, including any beneficiary entitled under the insurance policy to a cash amount, pension, or other financial compensation in the event of the occurrence of the accident or the realization of the risk specified in the policy. Loss Adjuster and Damage Assessor: Any person licensed by the Bank to practice the profession of inspecting damages, assessing them, studying their causes, and the extent to which the insurance policy covers those damages, and providing recommendations on improving means of preventing risks and preserving insured assets. Actuarial Expert: Any person specialized in insurance mathematics, licensed by the Bank to practice works of estimating error probabilities, bases and prices and the value of commitments and corresponding accounting reserves, and all works related to their calculation and statistics, all in accordance with recognized systems in the field of insurance and decisions issued by the Bank. Insurance Consultant: Any person licensed by the Bank to practice consulting expertise in the field of insurance, particularly risk assessment, and participating in the assessment of the assets and liabilities of insurers and insureds, without having the right to perform any work of insurance or reinsurance or participate in it. Insurance Broker: Any person licensed by the Bank to practice brokerage work, on behalf of the insured, in conducting insurance or reinsurance operations with insurance or reinsurance companies subject to the provisions of this Law. Insurance Company Representative: Any person who acts on behalf of an insurance company in marketing its services and dealing with the insured. The Person: The natural or legal person, as the case may be. The Client: Any natural or legal person who receives or deals in one of the financial services with one of the financial institutions, and any person who has begun to receive or deal in one of the financial services with financial institutions is also considered a client.

Chapter Two Regulation of the Bank and its Relationship with the Government Section One Regulation of the Bank Article (2) The Central Bank of Qatar shall have legal personality, an independent budget, and shall be directly subordinate to the Emir.

Article (3) The headquarters of the Bank shall be in the city of Doha, and it may open branches within the State and abroad, and may appoint agents and correspondents inside and outside the State.

Article (4) The Bank shall enjoy financial and administrative independence and all necessary regulatory, supervisory, and oversight powers to perform its duties and achieve its objectives, in accordance with the provisions of this Law. The Bank shall conduct its operations with third parties in accordance with commercial and banking rules and customs.

Article (5) The Bank aims, within the framework of the State's general economic policy and to help develop and support the national economy, to achieve the following: 1- Preserving the value of currency and ensuring monetary stability. 2- Acting as the highest regulatory, supervisory, and oversight authority for all financial services, works, and activities implemented in the State or through it, in accordance with the best international standards and practices. 3- Creating a sector for financial services, works, markets, and activities based on market rules and characterized by stability, transparency, competitiveness, and governance. 4- Enhancing public confidence in the State as a leading global center for financial services, works, and activities. 5- Ensuring the regular development of the financial services, works, markets, and activities sector, in line with the goals of economic development and comprehensive development in the State.

Article (6) The Bank works, in cooperation and coordination with the Ministry and competent government agencies, to achieve the goals of the State's general economic and developmental policy, without conflicting with the following objectives: 1- Stability of the exchange rate of the Riyal and its convertibility into other currencies. 2- Stability of prices of goods and services. 3- Financial and banking stability.

Article (7) The Bank, as the highest competent authority, and within the framework of the National Strategic Vision and in accordance with the best international standards and practices, shall formulate and implement the State's monetary policy, exchange rate policy, and policies related to the regulation, supervision, and oversight of financial services, works, and activities in the State. In this regard, it shall perform the following acts, in particular: 1- Issuing currency and regulating its circulation. 2- Performing the function of the Government's bank. 3- Acting as a bank for banks and other financial institutions operating in the State. 4- Formulating systems and rules that help stabilize the financial and banking sector, increase its efficiency, and develop it. 5- Formulating controls, instructions, and guidelines for governance, transparency, and good management in all financial institutions subject to the Bank's supervision. 6- Formulating and applying the bases, controls, and standards for the supervision and oversight of financial institutions. 7- Formulating a system or creating a deposit protection and guarantee fund, alone or in participation with banks operating in the State. 8- Formulating systems and procedures to protect consumers of financial services and products, including regulating financial instruments, products, and derivatives, and raising awareness of the risks associated with them. 9- Licensing financial institutions to conduct financial services, works, and activities, and supervising and overseeing them, in accordance with the provisions of this Law and decisions issued in implementation thereof. 10- Working to facilitate and encourage innovation in the field of financial services, works, and activities industry. 11- Taking necessary measures and steps to face global, regional, or local economic and financial disturbances and crises, in coordination with the Ministry. 12- Taking appropriate measures and steps to limit the commission of crimes related to financial services, works, and activities. 13- Managing and investing its funds and reserves. 14- Creating, managing, and developing banking and financial services systems and auxiliary services. 15- Creating, managing, and developing credit centers, institutions, and companies that serve its objectives. 16- Providing advice to the Council of Ministers on all matters related to financial and economic affairs. 17- Notifying the Council of Ministers of any factors that may threaten the stability of the financial or banking system, and proposing appropriate solutions in this regard. 18- Representing the State at regional and international monetary and financial institutions. 19- Preparing research and studies and publishing statistics related to its activities and works. 20- Any other duties or authorities assigned to it by the Emir.

Article (8) The Bank, as the highest competent authority, and within the framework of the National Strategic Vision and in accordance with the best international standards and practices, shall formulate and monitor the implementation of policies related to the regulation, supervision, and oversight of all financial services, works, and activities practiced in the Qatar Financial Centre or through it, and formulate and monitor the implementation of policies related to the regulation, supervision, and oversight of all financial markets in the State.

Section Two Capital of the Bank and its Accounts Article (9) The capital of the Bank is (50,000,000,000) fifty billion Riyals, fully owned by the State, non-transferable, and non-pledgeable. It may be increased by Emirate decree, upon the proposal of the Governor. If the Bank's accounts show a deficit in its capital, the State must issue non-transferable bonds to cover this deficit, and these bonds shall be without return.

Article (10) The Bank's financial year begins on the first day of January and ends on the thirty-first day of December of each year. The Bank shall prepare its balance sheet and profit and loss statement at the end of each financial year, in accordance with recognized accounting bases. Net profits for each financial year shall be determined after deducting expenses and expenditures.

Article (11) The Bank shall have an account for the general reserve, to which 10% of its net profits shall be transferred annually, and from the remaining percentage, amounts necessary to redeem bonds issued pursuant to the second paragraph of Article (9) of this Law shall be deducted. The remainder of the net profits, after making the deduction specified in the preceding paragraph, shall go to the Riyal exchange rate support account specified in Article (76) of this Law.

Article (12) The Bank shall establish a special account called "Reserve Revaluation Account," to which profits resulting from changes in the value of the Bank's assets and liabilities in gold, precious metals, foreign currencies, and special drawing rights against the exchange rate of the Riyal shall be credited, and losses resulting from the revaluation of the Bank's assets and liabilities mentioned above against the exchange rate of the Riyal shall be debited. Credit balances at the end of the financial year for this account shall not be included in the Bank's profits, while net debit balances shall be covered from the Bank's profits, if any, or by bonds on the Government without return. These bonds shall be consumed gradually from the net profits of this account that may be realized in subsequent years.

Article (13) The Bank shall prepare a financial report at the end of each financial year, including the estimated budget, balance sheet, profit and loss statement, and related data and explanations.

Article (14) The Bank shall have a General Auditor, whose appointment shall be issued by a decision of the Board, and who shall be among those with experience in accounting and banking affairs. The General Auditor shall preside over the administrative unit competent for internal audit within the Bank, and shall be responsible to the Board for the performance of his work, and shall submit his reports to the Board.

Article (15) The Court of Audit shall audit the Bank's accounts and assets in accordance with the law. It shall not be allowed to conduct prior supervision on contracts and agreements concluded by the Bank, nor shall it be allowed to intervene in any way in the management of its affairs or expose its policies. The technical employees of the Court of Audit who audit the Bank's accounts must be technically qualified and have special experience in the Bank's works.

Article (16) The Bank may contract with one or more auditors to audit the Bank's accounts. The auditor must be technically qualified and have special experience in the Bank's works. The work of the auditor is limited to auditing the Bank's accounts and assets, and he shall not intervene in any way in the management of its affairs or expose its policies. The auditor has the right at all times to access all books, records, and documents of the Bank, and to request data he deems necessary to perform his duties correctly, and to verify the Bank's assets and liabilities. In case he is unable to exercise these rights, he shall submit a report to the Board.

Article (17) The Bank must, within three months of the end of the financial year, submit to the Emir and the Council of Ministers the following: 1- A certified copy of the balance sheet and profit and loss statement. 2- A report on its operations and activities during the financial year. The Minister may request any information about the financial position of the Bank.

Article (18) The Bank is exempt from all types of taxes and fees, including its capital, properties, operations, profits, and companies owned by it.

Section Three Management of the Bank Subsection One The Governor and Deputy Governor Article (19) The Bank shall have a Governor at the rank of Minister, who shall implement the Bank's policy and manage and administer its affairs. The Governor shall be appointed by an Emir decree for a term of five years, renewable for one or more similar periods.

Article (20) The Bank shall have a Deputy Governor at the rank of Undersecretary of State, who shall assist the Governor in managing and administering the Bank's affairs, and shall replace the Governor in his absence or if the position is vacant.

Article (21) The Deputy Governor shall be appointed by Emirate decree upon the proposal of the Governor, for a term of five years, renewable for one or more similar periods.

Article (22) The Governor may, when necessary, by decision, appoint one or more assistants to the Deputy Governor. The decision of appointment shall specify the authorities assigned to them.

Article (23) The Governor shall have all the powers and authorities necessary to manage and administer the Bank's administrative, financial, and technical affairs and achieve its objectives, and in particular shall have the following: 1- Implementing and monitoring the approved monetary policy. 2- Implementing and monitoring the exchange rate policy. 3- Monitoring the implementation of banking policies and policies related to the regulation, supervision, and oversight of financial services, works, and activities. 4- Appointing Bank employees, determining their financial entitlements, and terminating their services in accordance with the applicable regulations and systems. 5- Appointing external correspondents for the Bank. 6- Representing the State at conferences and meetings in all fields related to the Bank's work at the regional and international levels. 7- Representing the Bank in its relationship with official agencies and higher authorities in the State. 8- Implementing and monitoring decisions issued by the Board. 9- Proposing legislative instruments related to the Bank and its authorities. 10- Any other duties or authorities assigned to him by the Emir.

Article (24) The Governor shall exercise all the authorities and powers granted to the Minister under the provisions of the Qatar Financial Centre Law mentioned above, with respect to the Regulatory Authority in the Centre. The Governor shall also supervise the works of the Qatar Financial Markets Authority, in accordance with the provisions of the law organizing the Authority.

Article (25) The Governor may delegate some of his powers and authorities to the Deputy Governor or any of his assistants or Bank employees, in accordance with the provisions of this Law and regulations and decisions issued in implementation thereof.

Article (26) The Governor represents the Bank before the judiciary and in his relationship with third parties.

Article (27) The Governor has the right to sign on behalf of the Bank, and he may delegate the Deputy Governor or any of his assistants or Board members or other Bank employees, individually or jointly, to sign, in matters specified by him.

Article (28) The Bank's seal on its documents shall not be considered valid unless accompanied by the signature of the Governor or the person authorized to sign.

Article (29) The Governor and his deputy shall, during their tenure, dedicate all their professional services to the Bank, and neither of them shall hold any other position or perform any other work, whether for compensation or without compensation. This excludes participation in conferences and activities of regional and international organizations, and works of councils or committees formed by or supervised by the State.

Subsection Two Board of Directors of the Bank Article (30) The management of the Bank shall be undertaken by a Board of Directors formed with the Governor as Chairman, the Deputy Governor, a Vice Chairman, and a number of members not less than five, one of whom shall be a representative of each of the Ministry of Economy and Finance and the Ministry of Commerce and Industry, nominated by their respective workplaces at the rank of Undersecretary of State. The Board and the determination of the remuneration of the Chairman, Vice Chairman, and members shall be issued by an Emir decree. The Vice Chairman shall replace the Chairman in his absence or if the position is vacant. The Board shall have a Secretary, whose appointment, authorities, and remuneration shall be determined by a decision of the Board.

Article (31) The term of membership on the Board shall be four years, renewable for one or more similar periods. If the position of any member becomes vacant before the end of his term, another member shall be appointed to complete the remaining term.

Article (32) The following conditions must be met by a member of the Board: 1- He must be of Qatari nationality. 2- He must enjoy full civil and political rights. 3- He must be among those with experience and competence in the field of financial services, works, activities, and markets. 4- He must not have been previously convicted of a crime involving honor or trust, unless his reputation has been restored. 5- He must not have been declared bankrupt, or refused to pay his debts. 6- He must not hold any position or office in any financial institution subject to the supervision and oversight of the Bank, or be one of its auditors, except for financial institutions owned by the State. 7- He must not be an owner or agent of an external accounting firm.

Article (33) A member of the Board must disclose financial or personal interests that conflict with his membership on the Board, and he shall not participate in the discussion or voting when the Board discusses these interests.

Article (34) The Board shall have all the powers and authorities necessary to achieve the objectives of the Bank, and in particular the following: 1- Approving the monetary policy, in coordination with the Minister. 2- Approving the specifications of currency, and how it is issued and withdrawn from circulation. 3- Approving policies related to the regulation, supervision, and oversight of all financial services, works, activities, and markets in the State. 4- Approving policies for payment, settlement, and clearing systems. 5- Approving the policy for managing and investing the Bank's funds. 6- Approving policies related to credit facilities granted by the Bank to financial institutions. 7- Approving discount rates, returns, commissions, and fees charged by the Bank. 8- Formulating conditions, controls, and procedures related to granting licenses to financial institutions to conduct financial services, works, and activities subject to the provisions of this Law. 9- Formulating controls and procedures related to combating money laundering and financing of terrorism in the field of financial services, works, and activities. 10- Issuing administrative, financial, and technical regulations and the human resources management regulation of the Bank. 11- Issuing the organizational structure of the Bank. 12- Approving the Bank's budget and approving its final accounts. 13- Exercising all other authorities granted to the Bank or falling within its jurisdiction according to the provisions of this Law. The Board may delegate some of its authorities, specified in this Law, to the Governor.

Article (35) The Board shall meet upon the invitation of its Chairman at least once every three months, and whenever necessary, or upon the request of two of its members. The meeting shall not be valid unless a majority of members are present, including the Chairman or his deputy. The Board's decisions shall be issued by a majority of the votes of those present, and in case of a tie in votes, the side from which the Chairman comes shall prevail.

Article (36) The Board may invite those it deems necessary to attend its meetings, from among those with competence, experience, and expertise, from Bank employees or others, to provide the advice, data, or explanations requested by the Board. Invited persons shall have the right to participate in discussions but shall not have the right to vote.

Article (37) Minutes of the Board's meetings and its decisions shall be recorded in a specially numbered register, or in separate minutes kept in a special file, and shall be signed by the Chairman and the Secretary.

Article (38) No member of the Board or Bank employee shall accept any gifts or benefits related to his work, for himself or for any other person related to him by kinship, work, financial interest, or personal interest, in accordance with what the Board specifies. The Board shall issue decisions regulating the borrowing of its members and Bank employees from financial institutions. No Bank employee during his term of service shall hold any other position or perform any other work, whether for compensation or without compensation, unless he obtains prior approval from the Board.

Article (39) It is prohibited for members of the Board, Bank employees, auditors, and their agents to disclose any data or information related to the affairs of the Bank or financial institutions, which have come to them due to the performance of their duties, except in cases specified by law or in implementation of a judicial order or ruling. This prohibition shall remain in force even after the termination of service of the persons mentioned.

Article (40) The Bank shall not pay to members of the Board or its employees any salaries, wages, fees, allowances, or bonuses calculated based on the profits achieved by the Bank.

Article (41) The Chairman, Vice Chairman, Board members, office holders, senior employees, and other Bank employees shall not bear any civil responsibility regarding the performance of acts or omissions performed in good faith during the performance or attempt to perform their authorities, duties, and tasks; pursuant to the provisions of this Law and regulations and decisions issued in implementation thereof.

Article (42) Membership on the Board shall end upon the expiration of its term without renewal, or by death, or by resignation. It shall also end by an Emir decree in any of the following circumstances: 1- If the member loses one of the conditions stated in this Law. 2- If the member becomes unable to perform the duties of his position for any reason. 3- If the member seriously breaches his duties. 4- If the member fails to attend three consecutive meetings without the Board's approval or without acceptable excuse. 5- If the member loses his position in the entity he represents, or if this entity decides to replace him.

Chapter Four Relationship between the Bank and the Government

Article (43) The Bank shall act as an advisor, banker, and financial agent to the State, ministries, other government bodies, and public institutions and entities. The Council of Ministers may request the Bank to provide opinions on economic and development policies.

Article (44) The Ministry and the Bank shall establish a mechanism for coordination between fiscal and monetary policies. The Bank may coordinate with other government bodies to achieve its objectives.

Article (45) Without prejudice to the provisions of Law No. (18) of 2002 mentioned above, coordination shall take place between the Minister and the Governor, before the beginning of each financial year and whenever necessary, regarding the volume of government loans from domestic banks, and the Ministry's plan for internal and external public debt.

Article (46) The Bank may accept deposits from the State, ministries, other government bodies, public institutions and entities, and companies in which the State participates or manages. As a deposit-taking institution, it shall maintain accounts, provide financial or banking services, and make payments within the limits of deposited amounts based on payment orders for these accounts, and may pay returns on these accounts.

Article (47) The Bank may, in accordance with the terms and conditions agreed upon by the Governor and the Minister, act as a financial agent for the State, ministries, other government bodies, and public institutions and entities, in issuing and managing public debt papers, in addition to paying their values, returns, and commissions, or any other financial or banking services.

Article (48) Ministries, other government bodies, public institutions and entities, companies owned or participated in by the State, and all financial institutions shall provide the Bank with the necessary information and data on the forms prepared by the Bank for the preparation of monetary and economic statistics, balance of payments statistics, and price levels. The Bank may publish the information and data provided to it in whole or in part, provided that this does not conflict with the confidentiality protection stipulated in this Law.

Article (49) Ministries, other government bodies, public institutions and entities, and companies owned or managed by the State shall not borrow from the Bank, regardless of the form, term, or value of such borrowing. As an exception to this, the Bank may grant the Government, upon the request of the Minister, an amount not exceeding (5%) of the average revenues of the State budget in the last three years, for a period not exceeding four months, in accordance with the terms and conditions specified by a decision of the Council.

Part Three Currency, Monetary Policy, and Exchange Rate

Chapter One Currency

Article (50) The unit of currency in the State is the Rial. The Rial is divided into (100) one hundred Dirhams.

Article (51) The issuance of currency is an exclusive privilege of the State, exercised solely by the Bank, which may do the following in this regard:

1. Take the necessary measures to print banknotes and mint coins, and related designs for banknotes and coins, and molds for printing banknotes and minting coins, and keep them in a secure place.
2. Issue, reissue, recall, and withdraw currency from circulation.
3. Exchange currency from the Bank's main center or one of its branches, and through banks, agencies, and offices established or designated by it.

Article (52) Currency issued by the Bank shall be a means of payment and discharge for any amount in the State, provided that this amount does not exceed the nominal value of the currency.

Article (53) The Bank shall determine the denominations, shapes, and designs of banknotes and coins, which shall be approved by the Amir. Banknotes shall bear the signatures of the Minister and the Governor.

Article (54) It is prohibited for any person to issue paper or metal currency or coins, or any documents or instruments payable to bearer that have the appearance of currency or can be interpreted as currency. Every person who comes into possession of forged paper or metal currency must present it to the Bank immediately upon learning of its forgery.

Article (55) The Bank may withdraw any banknotes or coins from circulation in exchange for their nominal value. The withdrawal decision shall be published in the Official Gazette and announced in other publishing and media outlets designated by the Bank. The withdrawal decision shall specify a period for exchanging withdrawn banknotes and coins, which shall not be less than ninety days in normal circumstances, and fifteen days in extraordinary circumstances. The decision shall also specify any conditions or procedures related to the withdrawal process.

Article (56) Banknotes and coins that are not presented for exchange before the deadline specified in the withdrawal decision lose their legal force as a means of payment and discharge, and dealing in them is prohibited. However, the holder has the right to obtain their nominal value from the Bank within a period not exceeding (10) ten years from the date of the withdrawal decision. If this period expires, the value shall be transferred to the Bank's general reserve.

Article (57) It is prohibited for any person to deface, tear, destroy, or damage currency in any form. The Bank shall issue the necessary decisions to regulate the process of exchanging damaged, torn, defective, or impaired coins and banknotes.

Chapter Two Currency Cover and Investment Operations

Article (58) The Bank shall at all times maintain a foreign currency reserve balance of corresponding assets to cover circulating currency and the Bank's operations, including gold, precious metals, government debt instruments, and other monetary and financial instruments, foreign exchange instruments, and other convertible instruments and financial instruments tradable in global and local markets, in convertible currencies and tradable financial instruments in global and local markets. The Bank shall invest this reserve in accordance with the policy approved by the Council.

Article (59) The balance of tradable foreign assets in convertible currencies shall not be less than (100%) of the value of circulating currency.

Chapter Three Monetary Policy

Article (60) The Bank shall be responsible for formulating and implementing monetary policy. The Bank shall announce this policy and any changes to it, and shall also announce, whenever necessary, an analytical statement of its developments and results, and any changes to its objectives.

Article (61) The Bank may operate in the open market through unrestricted purchase and sale, spot or forward, or under repurchase agreements for tradable government debt papers issued by the Government, securities issued by the Bank, and other securities, including Islamic securities, and may use any other instruments to implement monetary policy.

Article (62) The Bank may require deposit-taking financial institutions to maintain reserves with it at certain percentages and limits relative to the volume, type, and maturity of their deposits. Reserve ratios shall be equal for all deposit-taking financial institutions and for each type of deposit or on total deposits.

Article (63) Reserves required under the preceding article shall be maintained through the cash balances of financial institutions with the Bank, and those reserves shall be calculated in the manner determined by the Bank.

Article (64) The Bank may determine reserve ratios suitable for the activities of Islamic banks, specialized banks, and other financial institutions subject to the supervision and oversight of the Bank, commensurate with the nature of each.

Article (65) All reserves, in accordance with this Law or decisions issued to implement it, shall not be subject to pledge, attachment, or the establishment of any obligations as security.

Article (66) The Bank may impose financial penalties on financial institutions under its supervision and oversight that do not maintain the required reserves and at the specified limits and ratios, not exceeding five times the announced interest rate or return for each day the violation continues.

Article (67) The Bank may open accounts for financial institutions under its supervision and oversight, and accept deposits from them according to the conditions it determines.

Article (68) The Bank may, under the conditions and controls it determines, discount the following securities when presented by a financial institution:

1. Certificates of deposit, treasury bills, and bonds denominated in Rials and other currencies.
2. Tradable government debt papers issued in Rials and other currencies, provided they are part of an issue guaranteed by the Government or securities issued by the Bank.
3. Any other securities, financial instruments, or currency instruments designated by the Bank.

Article (69) The Bank may, under the conditions and controls it determines, purchase, sell, or accept as collateral from a financial institution the following assets:

1. Certificates of deposit in Rials or any other currency.
2. Tradable government debt papers and bonds in any currency.
3. Tradable assets, including precious metals.
4. Any other assets approved by the Bank.

Article (70) The Bank may, in exceptional circumstances and against guarantees it determines, grant loans, financing, or assume obligations for financial institutions, not exceeding (50%) of the Bank's capital and reserves or (100%) of the financial institution's capital and reserves, if it deems it necessary to support liquidity in financial institutions. The Bank may also extend the maturity dates of these loans, financing, or obligations, according to an approved plan specifying the measures and procedures that financial institutions must take to meet the requirements determined by the Bank.

Article (71) The Bank may control interest rates, return rates, and the terms of granting loans and accepting deposits in various financial institutions. The interest or return rate determined by the Bank shall apply to non-performing or rescheduled credit facilities, unless the lending financial institutions and their clients agree on another rate.

Chapter Four Payment, Settlement, and Clearing Systems

Article (72) The Bank shall regulate, develop, supervise, manage, and update payment, settlement, and clearing systems to keep pace with the best international systems, standards, and practices in force, ensuring sound and secure payments. The Bank shall regulate the participation of institutions and companies in payment and clearing systems, and the utilization of services provided through them. No person shall manage any payment system that does not comply with the conditions, standards, and requirements determined by the Bank.

Article (73) The Bank shall establish systems, rules, procedures, policies, and instructions for financial and electronic banking operations and other electronic activities within its competence or achieving its objectives.

Article (74) The Bank shall issue decisions, systems, and instructions regarding the regulation and operation of payment, settlement, clearing, and digital currency systems, in accordance with the best international standards and practices.

Chapter Five Exchange Rate

Article (75) The exchange rate system for the Rial in the foreign exchange market shall be determined by decree, in coordination between the Minister and the Governor. The Bank shall announce any change or modification to the Rial's exchange rate.

Article (76) The Bank may manage and control the Rial's exchange rate through a margin or other systems, against one or more currencies, or Special Drawing Rights, or any other arrangements. The Bank shall take measures to help maintain the external value of the Rial in accordance with the preceding paragraph, and the Bank may disregard these measures in the event of fluctuations in exchange markets.

Article (77) The Bank shall establish a special account to support the Rial's exchange rate, and this account shall be invested according to the Bank's investment policy.

Part Four Regulation of Financial Institutions

Chapter One Licensing for Practicing Financial Services, Operations, and Activities

Article (78) It is prohibited to provide any financial services or practice the activities and operations stipulated in this Law and the decisions issued to implement it, before obtaining a license for that from the Bank.

Article (79) No person shall, before obtaining a license for that from the Bank, use the word or logo of a bank, investment company, financing company, exchange house, insurance or reinsurance company, takaful or re-takaful company, credit card company, credit information company, rating or inquiry company, financial or investment consulting services, investment fund, financial institution, Islamic financial institution, or other financial institutions or services determined by the Bank, in all documents, correspondence, advertisements, or any other means.

Article (80) Subject to the provisions of the Commercial Companies Law and Law No. (13) of 2000 mentioned above, the Bank shall license the practice of financial services, operations, and activities stipulated in this Law and the decisions issued to implement it, for the following financial institutions:

1. Banks, which shall take the form of joint stock companies whose shares are offered to the public for subscription, in accordance with the terms and conditions determined by the Bank, and after submission to the Council of Ministers.
2. Investment and financing companies, which shall take the form of joint stock companies, in accordance with the terms and conditions determined by the Bank.
3. Insurance, reinsurance, and takaful companies and other companies practicing insurance activities, which shall take the form of joint stock companies whose shares are offered to the public for subscription, in accordance with the terms and conditions determined by the Bank.
4. Exchange houses, in accordance with the terms and conditions determined by the Bank.
5. Financial and investment consulting companies, in accordance with the terms and conditions determined by the Bank.
6. External units and representative offices, in accordance with the terms and conditions determined by the Bank.
7. Any other financial institutions for which a decision is issued by the Bank, in accordance with the terms and conditions set by the Council in this regard. The Bank may grant a license to any other type of commercial company other than the joint stock companies mentioned in the preceding paragraph, subject to the approval of the Council of Ministers.

Article (81) The license application for practicing any of the services, operations, or financial activities stipulated in this Law and its implementing decisions shall be submitted by the interested party or their legal representative to the competent administration, on the form prepared for this purpose, accompanied by supporting documents. The license applicant must provide all data, information, and documents requested by the competent administration.

Article (82) The competent administration shall examine the license application and its attachments to verify compliance with the required conditions, and may request any modifications it deems necessary for the application and provide what is necessary to decide on it. The license applicant may, before a decision is issued on the application, withdraw the application or correct any material errors in it or its attachments, in accordance with the terms and procedures determined by the Bank.

Article (83) The Governor shall issue a decision granting the license within sixty days from the date the application meets all conditions stipulated in this Law and the regulations and decisions issued to implement its provisions, based on public interest and the needs of the national economy. The Bank may specify in the license the geographical scope for providing the licensed services, and restrict it with conditions that ensure the proper performance of the licensed service or activity.

Article (84) The Governor shall issue a reasoned decision rejecting the license application if it does not meet the conditions, notifying the license applicant of the rejection decision and the reasons for it, by delivering the notice to their residence or place of business or by any means indicating knowledge of the decision. The applicant may appeal the rejection decision before the Committee within fifteen days from the date of notification of the decision.

Article (85) The duration of the license for each type of financial institution, and the fees for issuing and renewing the license and its procedures, shall be determined by a decision of the Council.

Article (86) The competent administration shall publish the decision granting the license in the Official Gazette and in two local daily newspapers, one in Arabic and the other in English. The licensee shall display a certified copy of the granted license in a prominent place at their place of business in the State, permanently.

Article (87) The competent administration shall establish a register called the "Register of Financial Institution Licenses," in which applications for financial institution licenses, the procedures taken regarding them, and all data and information related to them, or any changes to their status, shall be recorded.

Article (88) The Bank may license foreign financial institutions to open branches in the State, in accordance with the terms and conditions issued by a decision of the Council.

Article (89) The financial institution must begin practicing the licensed financial services, operations, and activities within (6) six months from the date of issuance of the license. The Bank may extend this period for an additional similar period. If this period expires without beginning to practice the licensed services, operations, or activities, the license shall be considered void.

Article (90) The Bank may modify the license conditions, upon request by the financial institution, in any of the following cases:

1. Adding any of the financial services, operations, or activities to those licensed for provision.
2. Modifying or canceling one or more of the conditions specified in the license.
3. Canceling any of the licensed financial services, operations, or activities. The Bank shall not modify the license conditions according to the preceding paragraph unless it verifies the financial institution's ability to meet the obligations imposed by the modified license conditions.

Article (91) The license may be canceled or suspended for a specified period, as appropriate, by a decision of the Governor in any of the following cases:

1. If the license was obtained based on forged or misleading information or documents.
2. If the financial institution loses one of the license conditions.
3. If the financial institution violates any of the provisions of this Law or the decisions or instructions issued to implement it, or the applicable legislation related thereto.
4. If the financial institution violates any of the conditions specified in the license.
5. If the financial institution ceases to practice the licensed financial services, operations, or activities.
6. Providing misleading or inaccurate information to the Bank that causes harm to others.
7. Threatening the interests of depositors, investors, or clients, or exposing them to danger, due to the manner in which the financial institution manages its affairs.
8. Inability of the financial institution to meet its obligations or financial solvency requirements, in accordance with the provisions of this Law and the decisions issued to implement it.
9. If the paid-up capital falls below the legally required minimum, or if the financial institution does not keep in the State the funds required to be allocated, in accordance with the provisions of this Law and the decisions issued to implement it.
10. If the financial institution refuses to present its books and documents for review, inspection, or audit by accountants, or refuses to provide them with the statements and data required to be provided in accordance with the provisions of this Law and the decisions issued to implement it.
11. Termination of the foreign financial institution's branch in the State.
12. Cancellation of the license of the financial institution in its home country.
13. If one of the dissolution causes stipulated in the Commercial Companies Law mentioned above occurs regarding the financial institution.

Article (92) The Bank must notify the financial institution of its headquarters or by any means indicating knowledge of the nature, reasons, and effective date of the suspension or cancellation of the license before issuing its decision to cancel or suspend the license according to the provisions of the preceding article. The Bank may, in exceptional cases that do not tolerate delay, issue a decision to suspend or cancel the license without prior notification as stipulated in the preceding paragraph. In all cases, the financial institution may appeal the aforementioned decision, in accordance with the terms and procedures stipulated in Article (83) of this Law.

Article (93) The competent administration shall publish the decision canceling or suspending the license in the Official Gazette, in two local daily newspapers, one in Arabic and the other in English, and on the Bank's official website on the Internet. The aforementioned decision may be announced by any other means, including electronic means, as deemed appropriate by the competent administration in this regard.

Chapter Two Insurance and Reinsurance

Article (94) Without prejudice to the insurance provisions stipulated in other laws, insurance operations include the following types: First: Life insurance and fund aggregation operations, including the following types:

1. Life insurance of all types.
2. Personal accident insurance, including insurance against damages resulting from personal accidents, occupational hazards, work accidents, theft, breach of trust, and civil liability insurance for individuals.
3. Long-term medical treatment insurance.
4. Insurance on fund aggregation operations. Second: Property insurance, including the following types:
5. Insurance against fire risks and damages usually resulting therefrom.
6. Insurance against land, sea, and air transport risks, and liabilities related thereto.
7. Insurance on ships and aircraft or their machinery and equipment, and everything related to ships and aircraft, including insurance against risks arising from their construction, manufacturing, use, repair, or mooring, and damages to third parties.
8. Insurance on goods and movables of any type, and insurance on freight charges.
9. Insurance on vehicles and mechanical vehicles, and liabilities related thereto.
10. Engineering insurance and liabilities related thereto.
11. Insurance on industrial and construction projects, and liabilities related thereto.
12. Insurance on oil and gas operations and their derivatives and related industries. The Bank may issue a decision to add other types of insurance.

Article (95) Insurance and reinsurance companies include the following:

1. Joint stock companies licensed to practice insurance and reinsurance operations in the State.
2. Branches of foreign insurance and reinsurance companies operating in the State, whose headquarters are outside the State.
3. Representative offices of foreign insurance and reinsurance companies. The entities mentioned in items (2) and (3) must meet the licensing terms and conditions issued by a decision of the Council.

Article (96) Insurance outside the State on assets or property located within the State or on liabilities arising therein is prohibited, as is intermediating in insurance on these assets, property, or liabilities, except with a company subject to the provisions of this Law.

Article (97) Companies licensed to practice life insurance and fund aggregation operations shall allocate a specialized technical and accounting department for these operations, and shall annually prepare and publish a separate balance sheet for these operations in addition to their general balance sheet. The accountant or any member of the technical staff shall not be an employee, manager, or board member of the company, and their appointment must be approved by the Bank.

Article (98) Companies practicing life insurance and fund aggregation operations shall not distinguish between insurance policies of the same type, whether in terms of insurance prices, accumulated cash values earned by the policy each year, the amount of profits distributed to policyholders, or other terms and conditions. Exceptions include insurance policies distinguished due to differences in life probabilities, or large-amount fund aggregation insurance policies benefiting from discounts according to price tables approved by the Bank. The company may, with the Bank's approval, issue policies with reduced prices if it provides reasons justifying this.

Article (99) Companies practicing life insurance and fund aggregation operations shall not directly or indirectly deduct any part of their funds corresponding to liabilities arising from insurance policies to distribute as profit to shareholders or policyholders, or to loan to company employees, or to pay any amount exceeding their obligations under the insurance policies they issued. Profit distribution shall be limited to the surplus amount determined by the actuary in their report.

Article (100) Insurance and reinsurance companies must obtain prior approval from the Bank if they intend to transfer their policies with the associated rights and obligations, for all or part of the operations they practice within the State, to one or more other companies, or if they intend to permanently cease their operations, wholly or partially, in one or more types of insurance, and wish to release all or part of their funds, in accordance with the terms, conditions, and procedures issued by a decision of the Council.

Article (101) In the event of a judgment declaring the bankruptcy of an insurance or reinsurance company, or its liquidation, policyholders shall have a privilege over all the company's funds and assets. This privilege shall come after the debts of the General Treasury and judicial fees, and amounts adjudicated finally. Rights of life insurance and personal accident policyholders, death benefits, and bodily injury compensation, and fund aggregation shall take precedence over other policyholders' rights.

Article (102) Actuaries, insurance consultants, or loss adjusters and damage assessors shall not practice their work in accordance with the provisions of this Law and the decisions issued to implement it, unless their names are registered in the registers prepared for this purpose by the competent administration. A decision of the Council shall be issued specifying the condition required for registration in this register, whether for a natural or legal person, as well as the conditions for renewal and deletion of this registration.

Article (103) Insurance and reinsurance companies shall not engage an external loss adjuster or damage assessor unless they are experts registered in the register mentioned in the preceding article. The Governor may exempt from this condition in cases requiring specialized technical expertise.

Article (104) Insurance and reinsurance companies are obliged to obtain the Bank's approval for the insurance policy models they wish to issue, as well as for any modifications thereto. The Bank may discuss what is contained in those policies and may reject any data that does not align with the public interest.

Article (109) The Sharia Supervisory Board shall perform the following:

1. Conduct Sharia supervision over all activities and operations of the Islamic financial institution to ensure compliance with the provisions of Islamic Sharia.
2. Issue binding opinions on the extent to which the transactions, operations, and contracts of the Islamic financial institution comply with the provisions of Islamic Sharia.
3. Review any matters referred to it by the board of directors of the Islamic financial institution, or in accordance with the instructions of the Central Bank.

Article (110) The Central Bank may, in accordance with the conditions and rules determined by the Board and in a manner that does not conflict with the provisions of Islamic Sharia, undertake the following operations:

1. Opening accounts for itself with Islamic financial institutions at