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6.66. Requirements—legal opinion
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LEGAL ENTITIES LEGISLATION
FINANCIAL SERVICES LEGISLATION
REGULATIONS
RULES
GENERAL RULES
CONDUCT OF BUSINESS RULES
ANTI-MONEY LAUNDERING AND COUNTER-TERRORIST FINANCING AND SANCTIONS RULES
COLLECTIVE INVESTMENT SCHEME RULES
AUTHORISED MARKET INSTITUTION RULES
MARKET RULES
RECOGNITION RULES
DEMATERIALISED INVESTMENT RULES
RULES FOR PRE-IPO LISTINGS
SOVEREIGN BONDS RULES
BANKING BUSINESS PRUDENTIAL RULES
PRUDENTIAL RULES FOR INVESTMENT FIRMS
PRUDENTIAL RULES FOR INSURANCE INTERMEDIARIES
INSURANCE AND REINSURANCE PRUDENTIAL RULES
ISLAMIC BANKING BUSINESS PRUDENTIAL RULES
1. GENERAL
2. PRINCIPLES RELATING TO AN ISLAMIC BANK
3. PRUDENTIAL REPORTING REQUIREMENTS
4. CAPITAL ADEQUACY
5. CAPITAL BUFFERS AND OTHER REQUIREMENTS
6. CREDIT RISK
6.1. General
6.2. Credit risk
6.3. Requirements—management of credit risk and problem assets
6.4. Role of Governing Body—credit risk
6.5. Credit risk management policy
6.6. Policies—general credit risk environment
6.7. Credit Risk Management Policy
6.8. Credit risk assessment
6.9. Categories of credits
6.10. Policy on Non-performing assets
6.11. Impaired credits
6.12. Restructuring, refinancing and re-provisioning of credits
6.13. Using external credit rating agencies (ECRA)
6.14. Multiple assessments
6.15. Choosing between issuer and issue ratings
6.16. Ratings within Financial Group
6.17. Using foreign currency and domestic currency ratings
6.18. Using short-term ratings
6.19. Risk-Weighted Assets (RWA) approach
6.20. Relation to CRM techniques
6.21. Risk-weight to be applied
6.22. Commitments included in calculation
6.23. AFSA can determine risk-weights and impose requirements
6.24. Risk-weighted assets approach—on-balance-sheet items
6.25. Specialised lending
6.26. Risk-weights for unsecured part of claim that is past due for more than 90 days
6.27. Risk-weighted assets approach—off-balance-sheet items
6.28. Conversion of notional amounts—market-related items
6.29. Credit conversion factors for items with terms subject to reset
6.30. Credit conversion factors for single-name swaps
6.31. Policies for foreign exchange rollovers
6.32. Conversion of contracted amounts—non-market-related items
6.33. Credit equivalent amount of undrawn commitments
6.34. Irrevocable commitment—off-balance-sheet facilities
6.35. Risk-weightings for Islamic Financial Contracts
6.36. Treatment of murabahah and related contracts
6.37. Treatment of bai bithaman ajil
6.38. Treatment of salam and related contracts
6.39. Treatment of istisna and related contracts
6.40. Treatment of ijarah and related contracts
6.41. Treatment of musharakah (non-diminishing)
6.42. Treatment of diminishing musharakah
6.43. Treatment of mudarabah and related contracts
6.44. Treatment of qardh
6.45. Treatment of wakalah
6.46. Credit risk mitigation
6.47. Requirements—CRM techniques
6.48. Obtaining Capital relief
6.49. Standard haircuts to be applied
6.50. Capital relief from collateral
6.51. Valuing collateral
6.52. Eligible collateral for Islamic banks
6.53. When physical assets may be eligible collateral
6.54. Forms of cash collateral
6.55. Holding eligible collateral
6.56. Risk-weight for cash collateral
6.57. Risk-weight for claims
6.58. Risk-weights less than 20%
6.59. Capital relief from guarantees
6.60. Eligible guarantors
6.61. Capital relief from hedging instruments
6.62. Capital relief from netting agreements
6.63. Criteria for eligible netting agreements
6.64. Legal opinion must cover transaction
6.65. Conclusion about enforceability
6.66. Requirements—legal opinion
6.67. Relying on general legal opinions
6.68. Netting of positions across books
6.69. Monitoring and reporting of netting agreements
6.70. Collateral and guarantees in netting
6.71. Provisioning
6.72. Making provisions
6.73. Review of levels
6.74. Prohibition on evergreening
6.75. AFSA can reclassify assets
6.76. Reporting to governing body
6.77. Transactions with related parties
6.78. Concept of related parties
6.79. Role of governing body—related parties
6.80. Policies—transactions with related parties
6.81. Transactions must be arm’s length
6.82. Limits on lending to related parties
6.83. Powers of the AFSA
7. CONCENTRATION RISK AND LARGE EXPOSURES
8. MARKET RISK
9. OPERATIONAL RISK
10. LIQUIDITY RISK
11. GROUP RISK
12. TREATMENT OF SUKUK
13. TREATMENT OF PSIAS AND ASSOCIATED RISKS
14. SUPERVISORY REVIEW AND EVALUATION PROCESS
15. PUBLIC DISCLOSURE REQUIREMENTS
APPENDIX 1: LIQUIDITY RISK
APPENDIX 2: GROUP RISK
APPENDIX 3: SUPERVISORY REVIEW AND EVALUATION PROCESS
APPENDIX 4: PUBLIC DISCLOSURES REQUIREMENTS
14. GLOSSARY
ISLAMIC FINANCE RULES
TAKAFUL AND RETAKAFUL PRUDENTIAL RULES
REPRESENTATIVE OFFICE RULES
AIFC AUDITOR RULES
AIFC Financial Technology Rules
COOPERATION AND EXCHANGE OF INFORMATION RULES
TERMS AND PROCEDURE FOR CURRENCY TRANSACTIONS
FINANCIAL SERVICES EXEMPT FROM CORPORATE TAX
GLOSSARY
FEES RULES
RULES ON CURRENCY REGULATION AND PROVISION OF INFORMATION ON CURRENCY TRANSACTIONS IN THE AIFC
RULES ON THE SUBSTANTIAL PRESENCE OF THE AIFC PARTICIPANTS APPLYING TAX EXEMPTIONS FOR THE PAYMENT OF CIT, VAT
MULTILATERAL AND ORGANISED TRADING FACILITIES RULES
AIFC RECOVERY AND RESOLUTION RULES
AIFC RULES ON DIGITAL ASSET ACTIVITIES
RULES AND MECHANISMS OF COOPERATION OF UNBACKED DIGITAL ASSET EXCHANGES AND/OR CENTRE PARTICIPANTS AUTHORIZED TO CARRY OUT DIGITAL ASSETS-RELATED ACTIVITIES WITH SECOND-TIER BANK OF THE REPUBLIC OF KAZAKHSTAN
POLICIES AND POLICY STATEMENTS
NOTICES
GUIDANCE
TEMPLATE
CONSULTATION PAPERS
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6.65. Conclusion about enforceability
6.67. Relying on general legal opinions