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  • Chapter 7: Transboundary Resolution Procedures

    • Article 28

      1.The competent authority may conclude international agreements with their foreign counterparts regarding the development and execution of transboundary resolution plans, in accordance with statutory procedures.
       
      2.If the resolution procedure requires actions to be taken regarding assets or liabilities subject to the jurisdiction of another state, the competent authority may order the concerned party to undertake any of the following:
       
       a)Take necessary actions to complete the sale or transfer.
       
       b)Safeguard related assets for the benefit of the transferee, the transitional entity, or the asset management entity pending the completion of the sale or transfer in the manner determined by the competent authority.
       
       c)Satisfy relevant obligations on behalf of the transferee, the transitional entity, or the asset management entity pending the completion of the sale or transfer in the manner determined by the competent authority.
       
      The competent authority may order the SIFI under resolution to bear the costs of sale or transfer procedures. 
       

    • Article 29

      Subject to relevant international agreements and conventions to which the Kingdom is party, the competent authority may apply resolution procedures to any foreign branch of a foreign financial institution, even if the relevant foreign regulatory authority does not apply any resolution procedure to the parent institution.

    • Article 30

      1.The foreign branch shall notify the competent authority when the parent financial institution is subject to resolution procedures.
       
      2.Without prejudice to relevant international agreements and conventions to which the Kingdom is party, the competent authority may, upon its knowledge that the foreign branch is subject to resolution procedures, accept or reject wholly or partially such procedures to achieve the objectives of this Law.
       
      3.Acknowledgement of resolution procedures taken by a foreign competent authority against a foreign branch shall not prejudice the provisions of the Bankruptcy Law in applicable cases.
       
      4.Without prejudice to the principle of reciprocity, the competent authority may cooperate with foreign counterparts regarding the impact of initiating resolution procedures on a foreign SIFI in other countries.