1. Affiliate: An entity owned by another entity by more than 25% and less than 50% of its capital.

2. Bank: A financial entity, which is authorized by the Central Bank to accept deposits as a bank.

3. Board: The Bank’s board of directors.

4. Central Bank: The Central Bank of the United Arab Emirates.

5. Central Bank Law: Union Law No (10) of 1980 concerning the Central Bank, the Monetary System and Organization of Banking as amended or replaced from time to time.

6. Controlling Shareholder: A shareholder who has the ability to directly or indirectly influence or control the appointment of the majority of the board of directors, or the decisions made by the board or by the general assembly of the entity, through the ownership of a percentage of the shares or stocks or under an agreement or other arrangement providing for such influence.

7. External Auditor: The audit firm and the individual audit engagement team members conducting the audit. Where relevant, specific references are made to the audit firm only in certain paragraphs.

8. Group: A group of entities which includes an entity (the ‘first entity’) and:

1. a.any Controlling Shareholder of the first entity;
2. b.any Subsidiary of the first entity or of any Controlling Shareholder of the first entity; and
3. c.any Affiliate.

9. Internal Control: Consists of five interrelated elements, whose effective functioning is essential to achieving a Bank’s performance, information, and compliance objectives:

1. a.management oversight and the control culture;
2. b.risk recognition and assessment;
3. c.control activities and segregation of duties;
4. d.information and communication; and
5. e.monitoring activities and correcting deficiencies.

10. Islamic Financial Services: Shari’a compliant financial services offered by Islamic Banks and Conventional Banks offering Islamic banking products (Islamic Windows).

11. Pillar 3: Pillar 3 disclosure requirements – consolidated and enhanced framework issued by the Basel Committee on Banking Supervision in March 2017 and any subsequent revisions.

12. Risk governance framework: As part of the overall approach to corporate governance, the framework through which the Board and management establish and make decisions about the Bank’s strategy and risk approach; articulate and monitor adherence to the risk appetite and risk limits relative to the Bank’s strategy; and identify, measure, manage and control risks.

13. Senior Management: The executive management of the Bank responsible and accountable to the Board for the sound and prudent day-to-day management of the Bank, generally including, but not limited to, the chief executive officer, chief financial officer, chief risk officer, and heads of the compliance and internal audit functions.

14. Subsidiary: An entity, owned by another entity by more than 50% of its capital, or is under full control of that entity regarding the appointment of the board of directors.