1. Without prejudice to other sanctions or procedures stated in this decree-law or any other laws in the State, and upon establishment of a violation by any Licensed Financial Institution, Authorized Individual, or Person carries on any of the Licensed Financial Activities without a license, of any of the provisions of this decree-law or the regulations, decisions, rules, standards, guidelines or instructions issued by the Central Bank in implementation thereof, including resolutions and standards issued by the Higher Shari`ah Authority, or any measures taken by the Central Bank, including sanctions or procedures for countering money laundering, combating terrorist financing, the Central Bank may, at its own discretion, decide to impose one or more of the following sanctions 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 measures and procedures 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 other limitations on all or certain operations and activities. d. Reduce or suspend the ability of the violating Licensed Financial Institution to participate in the Central Bank’s open market operations or to avail its standing and liquidity insurance facilities. e. Remove any of the Authorized Individuals of such concerned institution. f. Prohibit, in respect of a (Re)Insurance Company, the conclusion of new insurance contracts or carrying on of one or more type of insurance. g. Set out, in respect of a (Re)Insurance Company, threshold limits for total amounts of Premiums that the concerned company receives from the Insurance Policies it issues. h. Restrict, in respect of a (Re)Insurance Company, carrying on any of the investment activities related to the Solvency Margin, or oblige the concerned institution to liquidate its investments in any of such activities for related purposes; unless the same would cause harm to the concerned company, as assessed by the specialized expert. i. Require the violating Licensed Financial Institution to deposit funds with the Central Bank without return and for the period the Central Bank deems appropriate, in addition to the credit balance referred to in Articles nos. (32), (92), and (113) of this decree-law, as the case may be. j. Impose a fine of four hundred (400) basis points over the prevailing ‘Base Rate’ of the Central bank on any shortfall referred to in Articles (32), (92), and (113) of this decree-law, as the case may be. k. Require the violating party to return to customers the funds it obtained as a result of its violation of the provisions of this decree-law, and any excess funds including revenue and profits shall devolve to the Central Bank. l. Impose a fine on the violating party not exceeding ten (10) times the amounts of funds subject to the violation or unjust enrichment, as determined by the Central Bank. m. Impose a fine on the violating Licensed Financial Institution not exceeding one billion (1,000,000,000) Dirhams. n. Delink the violating Licensed Financial Institution from any of the Financial Market Infrastructures or any other services provided by the Central Bank to such institution. o. Revoke the license of the violating Licensed Financial Institution and strike its name off the Register. p. Impose conditions or restrictions on the license of the violating Licensed Financial Institution or the authorization of the violating Authorized Individual. q. Impose a fine on the violating Authorized Individual not less than one hundred thousand (100,000) Dirhams and not exceeding five million (5,000,000) Dirhams. r. Prohibit the violating Authorized Individual from undertaking any function at the Licensed Financial Institution he works for, or any other Licensed Financial Institution. s. Impose a fine on any Person carrying on or promoting financial activities without a license, or undertaking a Designated Function without authorization, not less than one million (1,000,000) Dirhams. t. Impose a fine on any Person who operates a financial infrastructure without a license, or violates the license limits, or any type of violation related to licensed Financial Market Infrastructure and Designated Infrastructure by the Central Bank, in accordance with the provisions of this decree-law, not less than one million (1,000,000) Dirhams and not exceeding twenty million (20,000,000) Dirhams. u. Any other financial or administrative measures or sanctions issued by a decision of the Board of Directors. The decision shall specify the authority entrusted with imposing such sanctions or measures. 2. Decisions to impose the sanctions referred to under item (1) in this article shall be effected by the Governor except for the sanction stipulated in paragraph (o) herein shall be effected by the Board of Directors. 3. In all cases, the violating party 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 before the Grievances and Appeals Committee, in accordance with the provisions of this decree-law. 4. The Central Bank shall have the power to immediately enforce any administrative and financial sanctions and penalties it issues in accordance with the provisions of this decree-law. The Central Bank shall collect any fine imposed in accordance with provisions of item (1) of this article. Such imposed fines shall be automatically debited from accounts and guarantees of the violating Person, held with the Central Bank or with any Licensed Financial Institution. 5. Administrative fines collected by the Central Bank under this decree-law shall constitute resources of the Central Bank. Under no circumstances may any authority or entity in the State confiscate, reclaim, or reallocate such funds. 6. The Central Bank may, at its discretion, reach a reconciliation with the violating Person, in relation to any enforced fines, pursuant to the implementation of the provisions of this decree-law, pursuant to the measures and controls regulating settlement procedures issued by the Central Bank. 7. The Central Bank may publish decisions related to any violating Person or decisions taken in respect of licensing, authorization, mergers, acquisitions, restructuring, liquidation or dissolution of any Licensed Financial Institutions, Licensed Financial Activities, or designation of Authorized Individuals. Such decisions shall be published on the official website of the Central Bank, including the name of such violating Person, in accordance with the controls determined by the Board of Directors.
Interpretation and application must be checked against the official text and current version.