Qatar Financial Centre Regulatory Authority Launches Consultation on Proposed Amendments to Prudential Framework for Conventional QFC Authorised Banks

The Qatar Financial Centre’s Regulatory Authority has launched a consultation on proposed Banking Business Prudential (Credit Risk and Related Matters) Amendments Rules 2021. It ends on 31 December this year.

The aim is to assess the impact of these proposals on conventional QFC authorised banks.

The prudential banking framework which applies to banks is largely based on the international framework for banks developed by the Basel Committee on Banking Supervision.

The amendments are being proposed to the Banking Business Prudential Rules 2014.

They include updated Rules taking account of the revised BCBS standardised approach for credit risk as well as new rule requirements related to the credit risk management framework.

They also include new rules taking account of the BCBS prudential treatment for equity investment in funds and new rules for categorising problem assets and provisioning.

In addition, they include new rules for the classification of items between the banking and trading books and updated rules related to the large exposures framework.

As the Islamic Financial Services Board has not finalised its work to update the credit risk capital requirement for Islamic banks, the Regulatory Authority is proposing to defer updating the credit risk framework in the Islamic Banking Business Prudential Rules 2015 until the standards are finalised and published.

After the consultation has ended, the Regulatory Authority will test the prudential returns with QFC banks over the reporting period from January 2022 to June 2022. The updated final BANK Rule would come into force on 1 January 2023.

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Qatar: Amendments to QFC Law Approved

Gulf Times, 16 June 2021: Qatar’s Cabinet has approved a draft law amending the QFC Law (Qatar Law No. 7/2005).

They also approved a draft law amending the Free Zones Law (Qatar Law No. 34/2005).

In addition, they approved a draft Ministerial Decision amending the tables attached to Qatar Law No. 9/1987 on Controlling Drugs and Regulating their Trade and Use and Qatar Law No. 19/1993 regarding regulating the circulation of psychoactive substances.

They went on to approve a draft Ministerial Decision on establishing a disciplinary board for auditors. It has been approved as part of efforts to implement Qatar Law No. 8/2020 on regulating the auditing profession.

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Qatar: Food Safety Practices Guide for Food Services Published

The Peninsula, 7 June 2021: Qatar’s Public Health Ministry has issued a Food Safety Practices Guide for Food Services.

They have been issued in line with international best practices in food safety and the requirements of the relevant Gulf standards.

They were prepared by the Ministry’s Department of Food Safety and Environmental Health together with international consultants.

They are aimed at helping food services in the country comply with Qatari laws and regulations to ensure food product safety.

It provides detailed instructions on mandatory legislative requirements to be met as well as food hygiene and safety measures based on the HACCP approach.

They will be reviewed and evaluated by the Department of Food Safety and Environmental Health inspectors during official inspections.

It also contains proposed control measures for food service establishments to ensure they comply.

There are three chapters. The first chapter outlines the pre-requirements including establishment requirements, equipment, pest control, staff, hygiene and disinfection. The second chapter includes requirements for control processes from food preparation to displaying, packaging, data development, and sampling. The third and final chapter discusses the food safety requirements which include food traceability, recalls, non-compliance and complaint processing.

It is expected to be enforced within a year and feedback has been sought.

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Qatar: Draft Intellectual Property Law Approved

Gulf Times, 6 May 2021: Qatar’s Cabinet has approved a draft protection of trademarks, copyright and neighbouring rights of the International Football Association law.

Among other things, the Law contains provisions on the registration of FIFA trademarks, the deposit of works, audio recordings, performances of performers and FIFA radio programmes with the office at the request of FIFA or its representative for this purpose.

The power of attorney also has to be notarised.

They have referred it to the Shoura Council to consider.

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Qatar: Draft Mediation in Civil and Commercial Disputes Resolution Law Discussed

The Shoura Council has discussed a draft law on mediation in settling civil and commercial disputes. Among other things, it specifies mediation agreements which its provisions will apply to.

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Qatar: Recommendations on Investment and Trade Court Establishment Submitted

The Legal and Legislative Affairs Committee of Qatar’s Shoura Council has held a meeting. They examined the draft law on establishing an investment and trade court and submitted its recommendations to the Shoura Council.

Qatar: Draft Law on non-Qatari Investors Approved

Qatar’s Cabinet has approved a draft law on non-Qatari investors. Among other amendments to Qatar Law No. 1/2019, the amendment to Article 7 it will allow non-Qatari investors to own up to 100% of the capital of Qatari shareholding companies listed on the Qatar Stock Exchange. They also approved a draft Finance Ministry Decision to apply the requirements of substantial activity to the economic activities practiced in Qatar.

Qatar: Simplified Tax Returns Introduced

Qatar’s General Tax Authority has announced it has started implementing a simplified tax returns system. It will simplify the returns which have to be submitted by companies and permanent establishments who are exempt from tax and who are owned by Qatari and GCC citizens as well as whose share capital is less than one million Riyals and annual revenue is less than five million Riyals. The system has been introduced in line with Qatar Circular No. 2/2021. These entities will have to submit the tax return and audited financial statements based on the approved tax return form.