Page 35 - Annual Report 2022 EN
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Outsourcing of certain Digital assets regulatory Islamic banking prudential rules International Association of
controlled functions rules framework Insurance Supervisors (IAIS)
In December 2023, the QFCRA issued a public
Following public consultation in 2023 on proposals to In 2023, the QFCRA commenced work with consultation on proposals to significantly update the The QFCRA is a member of the IAIS Operational
allow certain controlled functions in the Governance the QFCA to establish a legal and regulatory Islamic Banking Business Prudential Rules (IBANK). The Resilience Working Group (ORWG). The ORWG’s
and Controlled Functions Rules 2020 to be outsourced framework for digital assets, with the initial work proposals are designed to materially align IBANK with mandate is to identify factors and developments
to a suitably qualified third party, the QFCRA issued the in this area being focused on the development of the Islamic Financial Services Board (IFSB) prudential impacting operational resilience in the insurance
Miscellaneous Amendments Rules 2023 in August 2023. a model in the QFC as a proof of concept to aid standards and certain relevant areas of the BCBS Basel sector and supporting IAIS Members through a range
in the development of a model for the State. Accord framework. In that connection, the proposals of activities and an ongoing work programme. The
The rules allow firms with a lower risk footprint to
address the IFSB approach for credit risk and BCBS QFCRA continued its participation in the ORWG during
apply to the QFCRA to outsource certain controlled In September 2023, the QFCRA issued a public
counterparty credit risk as well as new requirements 2023, including the publication of the Issues Paper on
functions including the senior executive, money consultation on proposals to introduce a Digital
related to the credit risk management framework, the Insurance Sector Operational Resilience in August 2023
laundering reporting officer, compliance and finance Assets Regulatory Rules Framework. The framework
prudential treatment for equity investment in funds, and developing the ORGW’s future work programme,
functions to a suitably qualified third party. sets out a legal and regulatory framework for
the categorisation of problem assets and provisioning, which will include the development of IAIS operational
digital assets through the establishment of
the classification of items between the banking and resilience objectives and a supervisory toolkit.
a tokenisation framework in the QFC.
trading books and the large exposures framework.
The framework is designed to provide legal certainty and Partnering with peer regulators
The QFCRA is aiming to finalise and
a trusted technology environment for digital assets; to and other agencies in Qatar
introduce the updated rules in 2024.
provide legal recognition of digital assets and address
issues such as ownership of the underlying assets, The QFCRA continues to collaborate with the Qatar
custody arrangements, the transfer of ownership, trading Central Bank (QCB) and the Qatar Financial Markets
and exchange of digital assets and smart contracts; to Authority (QFMA) under the auspices of the Financial
develop a trusted technology infrastructure that embeds Stability and Risk Control Committee chaired by His
the standards necessary to ensure trust and confidence Excellency the Governor of the QCB and Chairman of
among consumers and support for the framework from the QFCRA. In that connection, the QFCRA participates
high quality service providers; and a framework that in consultations with the QCB, the QFMA and the
delivers certainty and promotes trust and confidence in QFCA on new and amended legislative proposals.
digital assets, the market, and the service providers. In addition to the Financial Stability and Risk Control
Committee, the QFCRA also collaborates with the QCB,
The QFCRA is aiming to finalise and
QFMA, the Qatar Stock Exchange, Edaa (formerly the
introduce the framework in 2024.
Qatar Central Securities Depository), Qatar Development
Bank (QDB), and the QFCA through a Joint Committee
established by the QCB. The Joint Committee was
established to assess, develop, and implement
multiple financial sector regulatory initiatives under
the Third Financial Sector Strategic Plan under the
broader objectives of the Qatar National Vision 2030.
