| 21.1 | Any person who intends to operate as a Restricted Licence Finance Company providing Short-Term Credit, must obtain a Licence to do so from the Central Bank.
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| 21.2 | An applicant for a License under this Regulation shall apply to the Central Bank in the form prescribed by the Central Bank.
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| 21.3 | Any applicant for a License under this Regulation must provide all information and documents required to assess the applicant’s suitability for a License.
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| 21.4 | The application and all supporting documents shall be in either Arabic or English. Documents in any other language shall be accompanied by a certified English or Arabic translation. Any financial figures should be presented in UAE Dirham (AED).
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| 21.5 | The applicant must disclose, at the time of the application, the sources of funding for its activities/ business and immediately inform the Central Bank of any material changes in its funding arrangements.
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| 21.6 | As part of the licensing process, an applicant for a License is required to submit a three (3) year business plan to the Central Bank with clear detail on the business model, lines of activity and governance arrangements.
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| 21.7 | The Central Bank may require the applicant to appoint a skilled person(s) to carry out a third party assessment of any aspect of the company’s proposed business model/systems. The findings and reports of the third party assessment will form part of the core licensing information required to be submitted by an applicant to the Central Bank.
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| 21.8 | The Central Bank shall communicate its decision considering the merits of the application and:
| a. | Grant the License with or without conditions and limitations; or
| | b. | Reject the application, stating the reasons for rejecting the application.
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| 21.9 | A Restricted Licence Finance Company must commence the provision of Short-Term Credit within a maximum of twelve (12) months from the date of notification of approval of the License.
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| 21.10 | A Restricted Licence Finance Company which intends to amend, cease or suspend the provision of Short-Term Credit must apply to the Central Bank at least six months in advance, providing the reasons for such a cessation or suspension.
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| 21.11 | A Restricted Licence Finance Company must maintain a physical presence in the UAE.
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| 21.12 | The legal form of a Restricted Licence Finance Company must be in one of the forms stipulated in the Commercial Companies Law.
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| 21.13 | The commercial or trade name of a Restricted Licence Finance Company or Agent must comply with the restrictions of the Central Bank Law. The commercial and trade name shall not include any term that may indicate any activity other than the provision of Short-Term Credit in accordance with this Regulation.
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| 21.14 | A Restricted Licence Finance Company must not use the term Finance Company in its commercial or trade name. The trade name may include the term Short-Term Credit.
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| 21.15 | A Restricted Licence Finance Company must seek prior approval from the Central Bank for any changes to its name, legal form, memorandum or articles of association.
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| 21.16 | A Restricted Licence Finance Company must not engage in any regulated activity for which it is not licensed under the Central Bank Law and/or its Regulations.
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| 21.17 | As per Article (70) of the Central Bank Law, the Central Bank shall have the right, at any time, to impose, change or cancel any restriction or condition on any License granted under this Regulation.
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| 21.18 | As per Article (71) of the Central Bank Law, the Central Bank may, at any time, suspend, withdraw or revoke any Licence issued under this Regulation.
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| 21.19 | The Central Bank may take any action deemed appropriate to ensure the sound functioning of Licensees and/or the financial sector.
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| 21.20 | The Central Bank may, at its sole discretion, impose any penalty it deems appropriate on any person found to be carrying on Financing activities, including offering or granting Short-Term Credit, in the UAE, without a License.
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