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  • Section Two: Competences of the Board of Directors and its Meetings

    • Article (15): Powers and Functions of the Board of Directors

      The Board of Directors shall, within the limitations imposed by the provisions of this decretal law, exercise all powers required for achieving the objectives for which the Central Bank has been established.

      The Board of Directors shall, in particular, exercise the following:

      1) Approve regulations, rules, standards, instructions and business controls to perform its functions and competences, and take all measures and actions necessary to enforce the provisions of this decretal law.

      2) Establish and oversee implementation of polices for deployment and management of the Central Bank’s Own Funds and assets.

      3) Decide on matters relating to issuance of the Currency and its withdrawal from circulation.

      4) Issue regulations relating to organization of Licensed Financial Activities and decide on related matters, including regulations and procedures relating to supervision and oversight thereof, and determine conditions and rules for granting licenses to Licensed Financial Institutions to carry on Licensed Financial Activities and authorizations to undertake Designated Functions.

      5) Approve regulations, rules, standards, instructions and business controls for insurance and reinsurance companies, insurance agents and the professions associated therewith.

      6) Establish policies, and approve regulations relating to prudential supervision, and the standards and guidelines relating to Licensed Financial Activities.

      7) Establish regulations and standards for protection of consumers of Licensed Financial Institutions.

      8) Approve regulations, controls, and procedures for countering money laundering and combating terrorism financing and unlawful organizations.

      9) Take necessary actions, procedures and impose administrative penalties against any Person violating the provisions of this Decretal Law, and regulations issued in implementation thereof.

      10) Approve rules and regulations for maintaining integrity and efficiency of Financial Infrastructure Systems licensed, established, developed, or operated by the Central Bank.

      11) Approve risk management and compliance policies at the Central Bank.

      12) Approve Central Bank’s bylaws, issue the organizational structure and the administrative, financial and technical regulations, and determine powers and competencies, within the limitations of the provisions of this Decretal Law.

      13) Approve human resources policies at the Central Bank.

      14) Approve rules for the Central Bank institutional governance, including a set of rules and regulations aimed at achieving performance quality and excellence, in line with the Government’s strategic plans and objectives.

      15) Decide on loans and advances granted to the Government, in accordance with the provisions of this Decretal Law.

      16) Approve settlements and reconciliations relating to Central Bank’s businesses.

      17) Approve the Central Bank’s annual budget and any variations thereof during the year.

      18) Approve the Central Bank’s annual final accounts and the amount of net annual profits.

      19) Regulate the mechanism of objections related to the insurance activity.

      20) Deal with all other matters deemed within its powers, and are conducive to achievement of the objectives of the Central Bank and the discharge of its functions, in accordance with the provisions of this Decretal Law.

       

      This article has been amended by Decretal Federal Law No. (25) of 2020, and Decretal Federal Law No. (9) of 2021 respectively. You are viewing the latest version. To view previous versions, click the version boxes below.
      Version 2 (effective from 02/01/2021 to 26/07/2021)

       

      The Board of Directors shall, within the limitations imposed by the provisions of this decretal law, exercise all powers required for achieving the objectives for which the Central Bank has been established. The Board of Directors shall, in particular, exercise the following:

      1. Issue regulations, rules, standards, instructions and business controls to perform its functions and jurisdictions, and take all measures and actions necessary to enforce the provisions of this decretal law.
      2. Establish and oversee implementation of polices for deployment and management of the Central Bank’s Own Funds and assets.
      3. Decide on matters relating to issuance of the Currency and its withdrawal from circulation.
      4. Issue regulations relating to organization of Licensed Financial Activities and decide on related matters, including regulations and procedures relating to supervision and oversight thereof, and determine conditions and rules for granting licenses to Licensed Financial Institutions to carry on Licensed Financial Activities and authorizations to undertake Designated Functions.
      5. Issue regulations, rules, standards, instructions, and work controls for insurance, reinsurance, insurance agents, and the professions and activities associated therewith.
      6. Establish regulations and standards for protection of customers of Licensed Financial Institutions.
      7.  Issue regulations, controls, and procedures for encountering money laundering and combating terrorism financing and unlawful organizations.
      8. Take necessary actions, procedures and impose administrative penalties against any Person violating the provisions of this decretal law, and regulations issued in implementation thereof.
      9. Approve rules and regulations for maintaining integrity and efficiency of Financial Infrastructure Systems licensed, established, developed, or operated by the Central Bank.
      10. Approve risk management and compliance policies at the Central Bank.
      11. Approve Central Bank’s bylaws, issue the organizational structure and the administrative, financial and technical regulations, and determine powers and competencies, within the limitations of the provisions of this decretal law.
      12.  Approve human resources policies at the Central Bank.
      13. Approve rules for the Central Bank institutional governance, including a set of rules and regulations aimed at achieving performance quality and excellence, in line with the Government’s strategic plans and objectives.
      14. Decide on loans and advances granted to the Government, in accordance with the provisions of this decretal law.
      15. Approve settlements and reconciliations relating to Central Bank’s businesses.
      16. Approve the Central Bank’s annual budget and any variations thereof during the year.
      17. Approve the Central Bank’s annual final accounts and the amount of net annual profits.
      18. Regulate the mechanism of objections related to the insurance activity in accordance with the regulating legislations in this regard.
      19. Deal with all other matters deemed within its powers, and are conducive to achievement of the objectives of the Central Bank and the discharge of its functions, in accordance with the provisions of this decretal law.

       

      Version 1 (effective from 31/10/2018 to 02/01/2021)

       

      The Board of Directors shall, within the limitations imposed by the provisions of this decretal law, exercise all powers required for achieving the objectives for which the Central Bank has been established.

      The Board of Directors shall, in particular, exercise the following:

      1) Issue regulations, rules, standards, instructions and business controls to perform its functions and jurisdictions, and take all measures and actions necessary to enforce the provisions of this decretal law.

      2) Establish and oversee implementation of polices for deployment and management of the Central Bank’s Own Funds and assets.

      3) Decide on matters relating to issuance of the Currency and its withdrawal from circulation.

      4) Issue regulations relating to organization of Licensed Financial Activities and decide on related matters, including regulations and procedures relating to supervision and oversight thereof, and determine conditions and rules for granting licenses to Licensed Financial Institutions to carry on Licensed Financial Activities and authorizations to undertake Designated Functions.

      5) Establish policies, and issue regulations relating to prudential supervision, and the standards and guidelines relating to Licensed Financial Activities.

      6) Establish regulations and standards for protection of customers of Licensed Financial Institutions.

      7) Issue regulations, controls, and procedures for encountering money laundering and combating terrorism financing and unlawful organizations.

      8) Take necessary actions, procedures and impose administrative penalties against any Person violating the provisions of this decretal law, and regulations issued in implementation thereof.

      9) Approve rules and regulations for maintaining integrity and efficiency of Financial Infrastructure Systems licensed, established, developed, or operated by the Central Bank.

      10) Approve risk management and compliance policies at the Central Bank.

      11) Approve Central Bank’s bylaws, issue the organizational structure and the administrative, financial and technical regulations, and determine powers and competencies, within the limitations of the provisions of this decretal law.

      12) Approve human resources policies at the Central Bank.

      13) Approve rules for the Central Bank institutional governance, including a set of rules and regulations aimed at achieving performance quality and excellence, in line with the Government’s strategic plans and objectives.

      14) Decide on loans and advances granted to the Government, in accordance with the provisions of this decretal law.

      15) Approve settlements and reconciliations relating to Central Bank’s businesses.

      16) Approve the Central Bank’s annual budget and any variations thereof during the year.

      17) Approve the Central Bank’s annual final accounts and the amount of net annual profits.

      18) Deal with all other matters deemed within its powers, and are conducive to achievement of the objectives of the Central Bank and the discharge of its functions, in accordance with the provisions of this decretal law.

       

    • Article (16): Formation of Committees and Delegation of Authorities

      1) The Board of Directors may form the committees it deems appropriate to assist in the discharge of its functions and competences in accordance with the provisions of this decretal law. Such committees may be formed from within the Board of Directors, or from outside the Board of Directors. The Board of Directors may also form committees and advisory boards, which include in their membership Persons from outside the Central Bank, and shall determine the remunerations of members of such committees and boards.

      2) The Board of Directors may delegate some of its powers to the Chairman, to the Governor, or to any committee derived from the Board of Directors.

      3) The Board of Directors may, annually, review the terms of reference and performance of the committees formed in accordance with item (1) of this article, and may take necessary actions to ensure compliance with professional and international standards, codes of conduct and governance.

    • Article (17): Higher Shari’ah Authority

      1) Pursuant to this decretal law, a Shari’ah authority referred to as “Higher Shari’ah Authority” affiliated to the Central Bank shall be established with a membership of not less than five (5) members and not exceeding seven (7) members, with knowledge and experience in the jurisprudence of Islamic financial transactions.

      2) The Board of Directors shall approve the authority’s charter, its functions and competencies, and the mechanism for financing the costs of its establishment and continuity of work.

      3) The Governor shall issue a decision to form the authority and appoint its members.

      4) Licensed Financial Institutions, which carry on the whole or part of their business and activities in compliance with the provisions of Islamic Shari’ah shall bear all expenses of the Authority referred to in item (1) of this article, including remunerations, allowances and expenses of its members according to the decision issued by the Board of Directors.

      5) The Higher Shari’ah Authority shall determine the rules, standards, and general principles applicable to Shari’ah-compliant Licensed Financial Activities and business, and shall undertake supervision and oversight of the internal Shari’ah supervisory committees of Licensed Financial Institutions, referred to in Article (79) of this decretal law.

      6) The Higher Shari’ah Authority shall approve Islamic monetary and financial tools issued and developed by the Central Bank to manage monetary policy operations within the State, and provide its opinion regarding the specific regulatory rules and instructions relating to the operations and activities of Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari’ah.

      7) The Fatawa and opinions of the Higher Shari’ah Authority shall be binding on the internal Shari’ah supervisory committees, referred to in Article (79) of this decretal law, and on Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari’ah.

      8) The Higher Shari’ah Authority may seek assistance of a specialized entity, if deemed necessary, to conduct a Shari’ah external audit of the business of any Licensed Financial Institution, which carry on the whole or part of their business and activities in accordance with the provisions of Islamic Shari’ah, and the conditions and procedures determined by the Authority, at the expense of the concerned institution.

       

      This article has been amended by Decretal Federal Law No. (09) of 2021. You are viewing the latest version. To view the previous version, click the version box below.
      Version 1(effective from 31/10/2018 to 26/07/2021)

       

      1) Pursuant to this decretal law, an authority named “Higher Shari`ah Authority” shall be established with a membership not less than five (5) members and not exceeding seven (7) members, of sufficient knowledge and experience in the jurisprudence of Islamic financial transactions.

      2) The Board of Directors shall issue a decision to form the authority and appoint its members. The decision shall determine the work mechanism of the authority, its functions, and responsibilities of its members and their term of office. This authority shall be affiliated to the Central Bank.

      3) Licensed Financial Institutions, which carry on the whole or part of their businesses and activities in compliance with Islamic Shari`ah shall bear all expenses of the Authority referred to in item (1) of this article, including remunerations, allowances and expenses of its members and the mechanism of funding its establishment and continuity of its functioning, as determined by the Board of Directors.

      4) The Higher Shari`ah Authority shall determine the rules, standards, and general principles applicable to Shari`ah-compliant businesses and Licensed Financial Activities, and shall undertake supervision and oversight of the internal Shari`ah supervisory committees of Licensed Financial Institutions, referred to in Article (79) of this decretal law.

      5) The Higher Shari`ah Authority shall approve Islamic monetary and financial tools issued and developed by the Central Bank to manage monetary policy operations in the State, and provide its opinion regarding the specific regulatory rules and instructions relating to the operations and activities of Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari`ah.

      6) The Fatwas and opinions of the Higher Shari`ah Authority shall be binding on the internal Shari`ah supervisory committees, referred to in Article (79) of this decretal law, as well as on Licensed Financial Institutions which conduct the whole or part of their business and activities in accordance with the provisions of Islamic Shari`ah.

      7) The Higher Shari`ah Authority may seek assistance of a specialized party, if necessary, to conduct Shari`ah external audit of the business of any Licensed Financial Institution, which carry on the whole or part of their businesses and activities in accordance with the provisions of Islamic Shari`ah, and the conditions and procedures determined by the Authority, at the expense of the concerned institution.

       

    • Article (18): Appointment of Senior Central Bank Executives

      The Board of Directors may, upon recommendation of the Governor, appoint senior Central Bank executives, with titles of deputy, assistant governors, or any other titles the Board of Directors deems appropriate. The decision appointing the deputies and assistants shall determine their competences, salaries, and remunerations.

    • Article (19): Working Full Time for the Central Bank

      1) The Governor, his deputies and assistants shall devote their full time to their work at the Central Bank, and none of them may hold any paid or unpaid position, or be a member of the Board of Directors of any of the Regulatory Authorities in the State, or in the Financial Free Zones or the Board of Directors of any Licensed Financial Institution, or enter, directly or indirectly, in any contracts concluded by the Public Sector.

      2) The prohibition referred to in item (1) of this article shall not apply to assignments entrusted to any of them by the Government in the Public Sector, including representation in international conferences, or representation of the Public Sector in the various committees, subject to the approval of the Board of Directors.

    • Article (20): Remunerations and Entitlements

      The Board of Directors shall set up a regulation regarding remunerations of the Governor and his other entitlements, and the remunerations of the Chairman and members of the Board of Directors. A federal decree, in this respect, shall be issued.

    • Article (21): Meetings of the Board of Directors

      1) The Board of Directors shall, upon invitation by the Chairman, hold an ordinary meeting, at least once every sixty (60) days.

      2) The Chairman of the Board of Directors may call the Board of Directors to convene whenever the need arises.

      3) The Chairman of the Board of Directors shall convene the Board of Directors upon request of, at least, three (3) members of the Board of Directors.

    • Article (22): Meetings Quorum

      Five (5) members of the Board of Directors including the Chairman of the Board of Directors, one of his deputies, or the Governor, shall constitute quorum for any meeting.

      Decisions of the Board of Directors shall be adopted by a majority vote of the members present. In case of a tie, the Chairman of the session shall have the casting vote.

      This article has been amended by Decretal Federal Law No. (02) of 2021. You are viewing the latest version. To view the previous version, click the version box below.
      Version 1(effective from 31/10/2018 to 08/03/2021)

       

      1) Five (5) members of the Board of Directors including the Chairman of the Board of Directors, his deputy, or the Governor, shall constitute quorum for any meeting.

      2) Decisions of the Board of Directors shall be adopted by a majority vote of the members present. In case of a tie, the Chairman of the session shall have the casting vote