Requirements | Minimum threshold |
Authorisation Fee (paid once) | 15000 USD *According toAIFC Fees Rules5.1.1., the application may not be regarded by the AFSA as submitted, and therefore ready to be reviewed, until the fee has been paid in full. Therefore, when the application is ready for submission, please send us a completed request for invoice (please follow the link to download the form) and after that we will issue the invoice for payment. If the payment to be made by a natural person, then please provide a copy of his/her ID as well. In accordance with the AIFC Fees Rules 1.1-1. an applicant seeking to conduct Regulated Activities in relation to Digital Assets, must pay to the AFSA an additional application fee in the amount of 2 000 USD. |
Registration Fee (paid once) | Registration fee is 300 USD (paid once) if you apply via the self-service portal and 500 USD (paid once) if you apply on paper via [emailprotected]. *AIFC Fees Rules |
Supervision Fee (annually) | 10000 USD *AIFC Fees Rules |
Minimum Capital Requirement | An Accepting Deposits Firm’s total Regulatory Capital is the sum of its Tier 1 Capital and Tier 2 Capital. The Base Capital Requirement for a Bank is 10 million USD. *In accordance with the modification notice issued by AFSA (AFSA Notice № AFSA-Q-OA-2020-0029) the Base capital requirement for an Islamic Bank is defined as 5 million USD. The notice remains effective until 1 November 2023. *AIFC Banking Business Prudential Rules 4. |
Liquid Assets Requirement | *AIFC Banking Business Prudential Rules 9. |
Appointment of Internal and External Auditor | Required *AIFC General Rules 5.5.1. *AIFC Financial Services Framework Regulations 109. |
Organisational structure | - Appointment of a Board of Directors;
- Appointment of approved and designated individuals (SEO, Finance Officer, Compliance Officer, MLRO and a deputy MLRO, Risk Manager, Internal Audit Manager);
- Appointment of committees within the company (Risk Committee, Compliance Committee etc.);
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Policies and Procedures | - AML Policy
- Compliance Manual
- Compliance Monitoring Program
- Risk Management Policy
- Remuneration Policy (AIFC GEN Rules 5.3.7.)
- Outsourcing Policy (AIFC GEN Rules 5.2.)
- Business Continuity Plan/Disaster Recovery Plan (AIFC GEN Rules 5.8.4.)
- Conflict of Interest (AIFC GEN Rules 5.6.)
- Credit Risk Management Policy (AIFC Banking Business Prudential Rules 9.)
- Market Risk Management Policy
- Operational Risk Management Policy
- Interest Rate Risk Management Policy
- Concentration Risk Policy
- Large Exposure Policy
- Trading Book policy
- Interest Rate Risk in the Banking Book Management Policy
- Liquidity Risk Management Policy
- Bank’s Group Risk Management Policy
- Disclosure Policy
- *Under AIFC Banking Business Prudential Rules 1.5, an Authorised Firm is a Bank if it is authorised to conduct the Regulated Activity of Accepting Deposits and/or Opening and Operating Bank Accounts.
- *By clicking here you can find guides to the minimum requirements for some policies and procedures.
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*Under AIFC Financial Services Framework Regulations 31 (5), the AFSA may require the applicant to provide additional information reasonably required for the AFSA to be able to decide the application.
FAQs
Accepting Deposits means accepting money or funds received as a Deposit if that money or funds are: lent to other Persons; or. used to finance wholly, or partly, any other activity of the Person accepting the Deposit.
Why do banks accept deposits? ›
Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.
What are the functions of accepting deposits? ›
A commercial bank accepts deposits in the form of current, saving and fixed deposits. It collects the surplus balance of the individuals and firms and finances the temporary needs of commercial transactions. The first task is, therefore, the collecting of the savings of the public.
Is accepting deposits a regulated activity? ›
Background to the regulated activity of accepting deposits
This is known as the general prohibition. For more information about the general prohibition and its territorial scope, see Practice Notes: The general prohibition and implications of its breach and Territorial scope of the general prohibition.
What are the rules for company acceptance of deposit? ›
1) Every company accepting deposits shall keep at its registered office one or more registers in which there shall be entered separately in the case of each depositor the following particulars, namely:- (a) name and address of the depositor; (b) date and amount of each deposit; (c) duration of the deposit and the date ...
What does accept deposits mean? ›
Accepting Deposits means accepting money or funds received as a Deposit if that money or funds are: lent to other Persons; or. used to finance wholly, or partly, any other activity of the Person accepting the Deposit.
Why are banks not accepting cash deposits? ›
For instance, large brick-and-mortar bank Wells Fargo states in its deposit account agreement that non-account owners are not allowed to deposit cash into consumer accounts. From a bank's standpoint, prohibiting cash deposits can help prevent money laundering and fraud. It's also expensive for the bank to process cash.
What are the 3 types of deposits most banks accept? ›
Types of Deposits
On the basis of purpose they serve, bank deposit accounts may be classified as follows: Savings Bank Account. Current Deposit Account. Fixed Deposit Account.
What are the benefits of taking deposits? ›
Here are the top 4 reasons you need to ask clients for booking deposits.
- Get The Client's Commitment. A deposit from your client indicates that they are committed to the project and your agreement. ...
- Booking Deposits Eases Cash Flow. ...
- Covers Any Service Cost In Advance. ...
- Booking Deposits Saves Your Revenue.
Banks use the major portion of deposits to extend loans. These loans are then recovered with an interest. Banks charge a higher interest for credit than deposits. Hence, the amount they receive is greater than the amount that they lend.
When you pay a deposit, you enter into a contract with the seller or supplier. The contract can be verbal or written. Both you and the seller are bound by the terms and conditions of the contract. The terms and conditions must be clear and fair.
What is deposit rule? ›
Deposit rules define: The amount of the deposit. The amount can be a flat amount, a percentage of the rate, or it can be based on the number of nights.
What is the maximum period for which a company can accept a deposit? ›
Tenure of deposits: Minimum 6 months maximum 36 months. However, a company may accept deposits for less than 6 months but not less than 3 months, and the amount of such deposits shall not exceed 10% of the PUC+FR+Sec. Prem., for meeting short-term funds requirements.
Why do banks want deposits? ›
In order to lend out more, a bank must secure new deposits by attracting more customers. Without deposits, there would be no loans, or in other words, deposits create loans.
What do banks do with the deposits they accept from the public? ›
Banks use the major portion of deposits to extend loans. These loans are then recovered with an interest. Banks charge a higher interest for credit than deposits. Hence, the amount they receive is greater than the amount that they lend.
What do banks do with your deposits? ›
Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
What is the main function of banks is to accept deposits? ›
The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits.
