Article 33. Discretionary Transitional Licence for Internationally Licensed Entities

1. The TIFC Board may approve the categories of foreign jurisdictions, regulators or licences eligible for transitional recognition. The TFSA shall determine individual applications for transitional licences in accordance with this Article and TFSA Acts.

2. A transitional licence under this article may only be granted in respect of a legal entity holding a valid licence issued by the competent regulatory authority of a foreign jurisdiction (a “Foreign Licence”), where that jurisdictionʼs competent regulatory authority has concluded with the TIFC Authority a memorandum of understanding or other formal supervisory cooperation agreement (hereafter referred to as the “MOU”) that is in force at the time of the grant of permission.

3. Where the TIFC Authority is in active negotiations with a competent authority with a view to concluding an MOU, the TIFC Board may, at its discretion, grant a time-limited interim transitional licence to an entity licensed by that authority for a period not exceeding six (6) months, subject to:

1) the TIFC Board being satisfied that the prospective MOU counterpart authority applies regulatory standards comparable to those required under this Constitutional Law and complies with the standards of the Financial Action Task Force (FATF);

2) the entity submitting a written undertaking to comply with such supervisory requirements as the TFSA may impose in lieu of the protections that would otherwise be provided by the MOU; and

3) the interim licence lapsing automatically if the MOU has not been concluded and entered into force before the expiry of the six-month period, unless the TIFC Board expressly renews it once for a further period not exceeding five months.

4. An entity granted a transitional licence under this Article on the basis of a concluded MOU or an interim permission under this article, shall be entitled to provide within the territory of the TIFC those Financial Services expressly covered by its Foreign Licence, subject to the following conditions:

1) the entity registers with the TIFC Authority as a transitionally licensed participant within the period specified in the Board's grant of licence, and in any event no later than sixty (60) days of the grant;

2) the entity provides those Financial Services in accordance with the laws and regulations of the jurisdiction in which its Foreign Licence was issued, to the extent such laws and regulations are not incompatible with this Constitutional Law or TIFC Act;