APPLICATION FORMS AND NOTICES (AFN) – AUT – BLS
For DFSA use only
Form AUT – BLS
Applying for Authorisation
Banking and Lending supplement
This supplement must be submitted by applicants applying to conduct any of the following
Financial Services:

Accepting Deposits

Providing Credit
The Notes for Applicants contains information that may assist you in completing this
supplement. Please refer to the section entitled “Banking and Lending” in the notes. Each note is
linked to a specific question in this supplement via a referenced number. Please note the
submission of this supplement is in addition to the submission of the Core Information form.
Where you feel a question in the supplement may have already been answered in the Core
Information form you may provide cross reference to the relevant section.
Page 1 of 3
AUT – BLS/VER1/03-09
APPLICATION FORMS AND NOTICES (AFN) – AUT – BLS
SECTION 1: CORPORATE GOVERNANCE, STRATEGY AND BUSINESS
MODEL
BL1.
Provide details of the proposed nature of your Deposit base and how you intend to
develop your Deposit base.
SECTION 2: FINANCIAL AND OPERATIONAL RISKS
BL2.
Describe the process by which all loans and investments will be identified, assessed,
reviewed and approved before granting any Credit Facility or making any investment.
Please provide a process map setting out the credit review and approval process.
Please provide a copy of your credit policy. What processes and policies are in place
to effect ongoing monitoring and management of the Credit Risk in your loan and
investment portfolios?
BL3.
Describe how management will identify, monitor and manage Concentration Risk
within your portfolio of loans and investments.
BL4.
Describe the processes for managing problem assets and evaluating the adequacy of
provisions to cover impairment of assets. Please also describe your processes for
writing off bad assets including the processes and the authorities for write-offs.
BL5.
Describe the systems and controls you will have in place to measure and monitor
Liquidity Risk. Please provide a copy of the firm’s liquidity, treasury and asset and
liability committee policies and procedures.
BL6.
Describe the procedures to enable you accurately to identify, measure, monitor and
mitigate interest rate risk in the Trading Book and Non-Trading Book.
BL7.
Describe your policies and processes in respect of operational risk management and
any processes put in place to deal with operational risk management in respect of
your business.
Page 2 of 3
AUT – BLS/VER1/03-09
APPLICATION FORMS AND NOTICES (AFN) – AUT – BLS
SECTION 3: CONDUCT OF BUSINESS RISKS TO CLIENTS AND MARKETS
BL8.
If you will be Accepting Deposits, please describe the policies, procedures, systems
and controls to ensure you do not, through an establishment maintained by you in the
DIFC:
 Accept Deposits from the State’s markets;
 Accept Deposits in the UAE Dirham;
 undertake currency Transactions or foreign exchange Transactions involving the
UAE Dirham; or
 Accept Deposits from Retail Clients.
BL9.
If you will be Providing Credit, please describe the procedures to ensure you do not,
through an establishment maintained by you in the DIFC;
 Provide Credit in the UAE Dirham; or
 undertake currency Transactions or foreign exchange Transactions involving the
UAE Dirham.
BL10. If you will be Providing Credit to Retail Clients in accordance with COB Rule 4.3.1
please detail the arrangements for ensuring that credit is provided only for business
purposes to Retail Clients that are Undertakings.
Page 3 of 3
AUT – BLS/VER1/03-09