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3.1 Application Process and Documentary Requirements for a License

N 35/2018 STA
  1. 3.1.1Any person, natural or juridical, may submit a new application to the Central Bank for any category of license mentioned under Paragraph 2.2 of Chapter 2 using “Licensed Person’s Application (LPA) Form” (Refer to Appendix 5 for LPA Form) and with necessary supporting documents;
  2. 3.1.2All documents provided to the Central Bank as part of the application for a license must be in Arabic or English;
  3. 3.1.3Documents in languages other than Arabic or English must be accompanied by Arabic or English legal translations;
  4. 3.1.4All figures in the financial statements, business plans or other projected reports must be expressed either in AED or in US Dollars;
  5. 3.1.5The applicant is permitted to appoint a duly authorised representative, such as a law firm or a professional consultancy firm, to prepare and submit the license application on behalf of the applicant. In such cases, the applicant continues to retain the full responsibility for the accuracy and completeness of information/documents provided and is required to certify the application form accordingly;
  6. 3.1.6The Central Bank may liaise directly with the applicant or the applicant’s duly appointed representative when processing the application for seeking any clarification or information;
  7. 3.1.7Applicants may contact the Licensing Division of the Banking Supervision Department for a pre-application meeting to discuss their business plans, application process and requirements;
  8. 3.1.8The following forms and documents must be submitted to the Central Bank for obtaining a license:
    1. a)Formal application letter signed by the applicant(s) which must specifically state the category of the license for which they are applying (refer Paragraph 2.2 of Chapter 2 for various license categories);
    2. b)Duly completed LPA Form (Refer to Appendix 5 for this Form);
    3. c)Comprehensive business plan which must consist of the following information regarding the proposed entity:
      • •Name of the proposed entity;
      • •Legal form of the proposed entity;
      • •Initial amount of paid-up capital that will be injected into the business. Please refer to Paragraph 2.3 of Chapter 2 for the minimum requirements of paid-up capital;
      • •Name(s) of the Owner/Partners/Shareholders and the ownership structure;
      • •Justification and reasons for applying to obtain a license to conduct Exchange Business and the value it will add to the financial industry;
      • •Proposed number of branches and their locations that are planned to be opened during the first three (3) years;
      • •Projected financial statements (Balance Sheet, P&L and cash flow statements) for the first three (3) years with assumptions;
      • •Applicant's business strategy, business model, primary corridors if planning for remittance activity, description of proposed products/services and other marketing plans;
      • •An assessment report on the potential risks that may be faced by the proposed entity and suggested measures to mitigate such risks; and
      • •Emiratization plans in line with the Central Bank’s requirements.
    4. d)In case the proposed Shareholder(s) is/are a juridical person(s), a Board resolution from such juridical person(s), confirming the decision to become shareholder in the proposed entity;
    5. e)In case the proposed Shareholder is a juridical person, the certificate of incorporation issued by the competent authority in its country of incorporation, commercial license/registration or any other similar official document;
    6. f)In case the proposed shareholder(s) is/are part of a Group of Companies/Businesses, copies of the audited financial statements of that Group, for the immediately preceding three (3) years;
    7. g)A letter of undertaking from the Owner/ all Partners/ all Shareholders of the proposed entity to comply, in case the application is approved, with the paid-up capital and bank guarantee requirements stated under Paragraphs 2.3 and 2.4 of Chapter 2;
    8. h)Letter of undertaking as per Article 3 (d) of the Regulations;
    9. i)A Draft version of Memorandum and Articles of Association of the proposed entity;
    10. j)Duly completed “Authorised Person’s Appointment (APA) Form” (Refer to Appendix 5 for APA Form) for the Manager in Charge (detailed CV must be included with a brief description);
    11. k)List of proposed members of the Board (i.e. Directors on the Board) if it is applicable (detailed CV must be included with a brief description for each Board member);
    12. l)Paid-up capital certificate of deposit from a bank licensed in the UAE;
    13. m)Copy of the required initial approvals from the Department of Economic Development; and
    14. n)A copy of the tenancy agreement and the address of premises to carry out the business of the proposed entity.
  9. 3.1.9The applicant must submit documents as per Paragraphs 3.1.8 (a) to (h) of this Chapter to initiate the application process;
  10. 3.1.10The Central Bank, upon review of all documents as per Paragraphs 3.1.8 (a) to (h) of this Chapter, will notify the applicant if the initial approval has been granted or its application has been rejected by the Board of the Central Bank;
  11. 3.1.11The applicant is required to submit documents under Paragraphs 3.1.8 (i) to (n) of this Chapter only after receiving the initial approval of the Central Bank;
  12. 3.1.12The proposed Manager in Charge will be called in for an interview by a special committee of the Central Bank as part of a fit and proper test. The Central Bank reserves the right to issue or decline the approval for the appointment of the proposed Manager in Charge;
  13. 3.1.13The Central Bank, upon review of all documents as per Paragraphs 3.1.8 (i) to (n) of this Chapter and the Bank Guarantee as per Paragraph 2.4 of Chapter 2, will notify the applicant in writing if the license to carry out the business has been granted or not;
  14. 3.1.14After obtaining the license to carry out Exchange Business from the Central Bank, the Licensed Person must submit the following to the Banking Supervision Department before commencing the business:
    1. a)A copy of the notarized Memorandum and Articles of Association;
    2. b)Auditors certification that paid-up capital has been injected into the business;
    3. c)Undertaking letter from the Owner/Shareholders/Partners whereby the Licensed Person agrees to comply with paid-up capital ratio and liquidity requirements as per Paragraphs 4.1, 4.18 and 4.19 of Chapter 4;
    4. d)Duly completed APA Form (Refer to Appendix 5 for this Form) and an approval request for the appointment of the Compliance Officer and Alternate Compliance Officer. Please refer to Paragraphs 16.4.9 and 16.5.2 of Chapter 16 for further details;
    5. e)Contact details (such as mobile number, phone number, fax number and email) of the main/head office, Manager in Charge and Compliance Department or Officer;
    6. f)Application for a Letter of No Objection to appoint External Auditors as per Paragraph 7.3.2 (b) of Chapter 7;
    7. g)Business Continuity Plans;
    8. h)Copy of the insurance policy;
    9. i)Description of the IT systems, detailed back up and disaster recovery plans;
    10. j)Application for connectivity to the Central Bank reporting systems; and
    11. k)Any other information as may be specified by the Central Bank.
  15. 3.1.15The Licensed Person must submit documents under Paragraphs 3.1.14 (a) to (b) of this Chapter to the Licensing Division and the remaining documents to the Supervision & Examination Division of the Banking Supervision Department; and
  16. 3.1.16The Licensed Person must inform the Supervision & Examination Division and the FID (i.e. the Financial Intelligence Department which was formerly known as the AMLSCU) at least ten (10) days in advance about the date of commencement of its business.