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Article (137)

Fed Law 14/2018 Issued on 1/10/2018
  1. 1) Without prejudice to other sanctions stated in any other laws in the State, and upon establishment of a violation by any Licensed Financial Institution or by any Authorized Individual of any of the provisions of this decretal law or the regulations, decisions, rules, standards or instructions issued by the Central Bank in implementation thereof, or any measures taken by the Central Bank, including procedures for encountering money laundering, combating terrorist financing, and illegal organizations, the Central Bank shall, at its own discretion, decide to impose one or more of the following penalties or take any of the following measures:
    1. a. Issue, by any means, a caution to the violator.
    2. b. Require the violating Licensed Financial Institution to take necessary actions and measures that the Central Bank deems appropriate to rectify the violation.
    3. c. Prohibit violating Licensed Financial Institution from conducting some operations, or carrying on some Licensed Financial Activities, or impose any restrictions, conditions or limitations on all or certain operations and activities.
    4. d. Impose conditions or restrictions on the license of the violating Licensed Financial Institution.
    5. e. Reduce or suspend the ability of the violating Licensed Financial Institution to draw on the Central Bank’s funds through the Standing Facilities.
    6. f. Require the violating Licensed Financial Institution to deposit funds with the Central Bank without return and for the period Central Bank deems appropriate, in addition to the credit balance referred to in Article (32) of this decretal law.
    7. g. Impose a fine of four hundred (400) basis points over the prevailing base interest rate of the Central bank on any shortfall in the Reserve Requirements referred to in Article (32) of this decretal law.
    8. h. Require the violating Licensed Financial Institution to return to customers the funds it obtained as a result of its violation of the provisions of this decretal law and any excess funds including revenue and profits shall devolve to the Central Bank.
    9. i. Impose a fine between one (1) time and ten (10) times the value of unjust enrichment as determined by the Central Bank, which the violating Licensed Financial Institution has, unlawfully acquired, as a result of the violation.
    10. j. Impose a fine on the violating Licensed Financial Institution not exceeding two hundred million (200,000,000) Dirhams.
    11. k. Delink the violating Licensed Financial Institution from one or all Financial Infrastructure Systems.
    12. l. Withdraw the license of the violating Licensed Financial Institution and strike off its name from the Register.
    13. m. Impose conditions or restrictions on the authorization of the violating Authorized Individual.
    14. n. Impose a fine on the violating Authorized Individual not less than one hundred thousand (100,000) Dirhams and not exceeding two million (2,000,000) Dirhams.
    15. o. Prohibit the violating Authorized Individual from undertaking any Designated Function at the Licensed Financial Institution he works for, or any other Licensed Financial Institution.
    16. p. Any other financial or administrative measures or sanctions issued by a decision of the Board of Directors. The decision specifies the authority entrusted with imposing these sanctions or measures.
  2. 2) Decisions to impose the sanctions referred to under item (1) of this article shall be made by the Governor except for the sanction stipulated in item (I) herein shall be made by the Board of Directors.
  3. 3) In all cases, the violator shall be notified, officially, of the reasoned decision within fifteen (15) working days from date of its issue. Such notice shall include the following:
    1. a. Content of the decision.
    2. b. Reasons for the decision.
    3. c. Effective date of the decision.
    4. d. A statement advising the violator of its right to submit a grievance against the decision in front of the Grievances & Appeals Committee, in accordance with the provisions of this decretal law.

 

This article has been amended by Decretal Federal Law No. (09) of 2021. You are viewing the latest version. To view the previous version, click the version box below.
Version 1(effective from 31/10/2018 to 26/07/2021)

 

1) Without prejudice to other sanctions stated in any other laws in the State, and upon establishment of a violation by any Licensed Financial Institution or by any Authorized Individual of any of the provisions of this decretal law or the regulations, decisions, rules, standards or instructions issued by the Central Bank in implementation thereof, or any measures taken by the Central Bank, including procedures for encountering money laundering, combating terrorist financing, and illegal organizations, the Central Bank shall, at its own discretion, decide to impose one or more of the following penalties or take any of the following measures:

  • a. Issue by any means, a caution to the violator.
  • b. Require the violating Licensed Financial Institution to take necessary actions and measures that the Central Bank deems appropriate to rectify the violation.
  • c. Prohibit violating Licensed Financial Institution from conducting some operations, or carrying on some Licensed Financial Activities, or impose any restrictions, conditions or limitations on all or certain operations and activities.
  • d. Impose conditions or restrictions on the license of the violating Licensed Financial Institution.
  • e. Reduce or suspend the ability of the violating Licensed Financial Institution to draw on the Central Bank’s funds through the Standing Facilities.
  • f. Require the violating Licensed Financial Institution to deposit funds with the Central Bank without return and for the period Central Bank deems appropriate, in addition to the credit balance referred to in Article (32) of this decretal law.
  • g. Impose a fine of four hundred (400) basis points over the prevailing base interest rate of the Central bank on any shortfall in the Reserve Requirements referred to in Article (32) of this decretal law.
  • h. Require the violating Licensed Financial Institution to return to customers the funds it obtained as a result of its violation of the provisions of this decretal law and any excess funds including revenue and profits shall devolve to the Central Bank.
  • i. Impose a fine between one (1) time and ten (10) times the value of unjust enrichment as determined by the Central Bank, which the violating Licensed Financial Institution has, unlawfully acquired, as a result of the violation.
  • j. Impose a fine on the violating Licensed Financial Institution not less than two million (2,000,000) Dirhams and not exceeding two hundred million (200,000,000) Dirhams.
  • k. Delink the violating Licensed Financial Institution from one or all Financial Infrastructure Systems.
  • l. Withdraw the license of the violating Licensed Financial Institution and strike off its name from the Register.
  • m. Impose conditions or restrictions on the authorization of the violating Authorized Individual.
  • n. Impose a fine on the violating Authorized Individual not less than one hundred thousand (100,000) Dirhams and not exceeding two million (2,000,000) Dirhams.
  • o. Prohibit the violating Authorized Individual from undertaking any Designated Function at the Licensed Financial Institution he works for, or any other Licensed Financial Institution.

2) Decisions to impose the sanctions referred to under paragraphs (a, b, c, e, f, g, and h) shall be made by the Governor and decisions concerning other sanctions shall be made by the Board of Directors.

3) In all cases, the violator shall be notified, officially, of the reasoned decision within fifteen (15) working days from date of its issue. Such notice shall include the following:

  • a. Content of the decision.
  • b. Reasons for the decision.
  • c. Effective date of the decision.
  • d. A statement advising the violator of its right to submit a grievance against the decision in front of the Grievances & Appeals Committee, in accordance with the provisions of this decretal law