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Article (6): The Fit and Proper Process

C 4/2024 Effective from 31/10/2024
6.1The Fit and Proper Process must be applied to all Applicants and Material Risk Takers.
6.2The Central Bank may require any Person employed within or engaged by a Licensee to be subject to the Fit and Proper Process, at its sole discretion.
6.3In cases where a Licensee established in the UAE, is a member of a Group, the Fit and Proper Process must be undertaken on the board and senior managers of other entities in the Group, if they exercise a material or controlling influence on the Licensee. In such cases, the Licensee must ensure that an assessment is completed, highlighting any material differences between the requirements herein and those in the jurisdiction of the Parent and submit to the Central Bank, a compliance plan which ensures full compliance in the host jurisdiction while considering the regulatory requirements in the State. In all cases, where there is no clear conflict between the requirements, the stricter and/or more prudent requirements must be complied with. Where the Licensee is not established within the UAE, the Central Bank, may, at its sole discretion, require that the Fit and Proper Process be undertaken for the board and senior managers of other entities in the Group, on a case by case basis. The Central Bank may exempt a Licensee from the requirements herein, if the Licensee demonstrates to the satisfaction of the Central Bank, that the fit and proper requirements of another jurisdiction are satisfactory and are being met by the Licensee.
6.4If the Fit and Proper Process results in adverse findings, that is, finds that the Person concerned is not fit and proper or not suitable for the position they hold and therefore demonstrate the need to remove the Person from that function, the Central Bank’s non-objection must be sought, where required, in line with this Regulation and the accompanying Standards.
6.5
The Central Bank recommends that Authorised Individuals undergo the Fit and Proper Process on an annual basis. All Authorized Individuals and Material Risk Takers must be subject to the Fit and Proper Process:
 
a.Prior to appointing the Person to a Designated Function or as a Material Risk Taker;
b.Regularly, and at a minimum, every three (3)years or prior to the renewal of thecontract or reappointment of the Person,whichever is earlier;
c.If there is reason to believe that the Person may no longer be fit and proper either due to a trigger event (as set out in Article 6.11 of the accompanying Standards) or any other reason; and
d.Any other time, as determined by the Central Bank.