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Article (5): Application for Approval

C 5/2020 Effective from 15/5/2020
  1. An application for Central Bank approval must be in such form and be accompanied by such information as the Central Bank may require.
     
  2. An application for Central Bank approval must contain the following information and address the following issues:
     
    1. a) A duly completed questionnaire in the form prescribed by the Central Bank which will include requirements to demonstrate the shareholders appropriate financial standing and reputation;
       
    2. b) A detailed exposition of the applicant’s shareholding/s in the Bank, including all direct and indirect shareholdings, setting out also the names of any nominee shareholder/s and shareholding/s. In addition, the same information must be provided in respect of the shareholding/s in the Bank of any party or parties acting in concert with the applicant;
       
    3. c) Detailed financial information of the applicant entity covering a period of at least 3 years prior to the application date;
       
    4. d) Any other information reasonably necessary for the Central Bank to reach a decision on the merits of the application.
    5.  
  3. The Central Bank considers each application on its own merits, on a case-by-case basis. The applicant must demonstrate to the satisfaction of the Central Bank that it currently meets the criteria and in future will continue to meet the criteria to be a significant or controlling shareholder of a bank.
     
  4. An application for Central Bank approval must be made by and in the name of the (ultimate) beneficial shareholder. Breach of this requirement invalidates any Central Bank approval issued in relation to such an application, and any person involved with such an application is deemed not to be a fit to be a significant or controlling shareholder, officer or director of a bank.
     
  5. Any action or inaction which conceals the true identity of a beneficial shareholder intending to obtain or holding a significant or controlling shareholding invalidates any Central Bank approval issued in relation to that application. Any person involved with such an application is deemed not to be a fit and proper person to be a significant or controlling shareholder, officer or director of a bank.
     
  6. A person who provides the Central Bank with false, fraudulent, fictitious, materially misleading or materially incorrect information in relation to an application is deemed not to be a fit and proper person to be a significant or controlling shareholder, officer or director of a bank.