BR-A.2.1

All locally incorporated banks in the Kingdom of Bahrain are required to submit to the Agency their annual reports (in compliance with the provisions set out under section BR-1.1) no later than the end of 3 calendar months from the date of such reports. In addition, these banks are also required to submit supplementary information (as listed under section BR-1.1) to the Agency.

BR-A.2.2

All Bahrain branches of foreign banks are required to submit to the Agency their annual audited financial statements (in compliance with the provisions set out under section BR-1.2) no later than the end of 3 calendar months from the date of such statements. In addition, these banks are also required to submit supplementary information (as listed under section BR-1.2) to the Agency.

BR-A.2.3

All FCB Bahrain branches of foreign banks are required to submit to the Agency their Balance Sheet and Profit and Loss Accounts (in compliance with the provisions set out under section BR-2.1) no later than the end of 8 weeks from the date of such statements.

BR-A.2.4

All locally incorporated banks in the Kingdom of Bahrain are required to submit to the Agency the following information on a quarterly basis:

BR-A.2.5

All Bahrain branches of foreign banks are required to submit to the Agency PIRB Forms (in accordance with the provisions set out under section BR-3.2).

BR-A.2.6

All banks licensed by the Agency in the Kingdom of Bahrain are required to submit to the Agency quarterly statistical returns as required under section BR-3.3).

BR-A.2.7

All banks licensed by the Agency in the Kingdom of Bahrain are required to submit to the Agency monthly statistical returns as required under section BR-4.1).

BR-A.2.8

All locally incorporated banks listed on the Bahrain Stock Exchange are required to report to the Capital Markets Supervision Directorate of the Agency, on a monthly basis, information relating to their Directors' interests in the shares of locally incorporated banks listed on the Bahrain Stock Exchange (in accordance with the provisions set out under section BR-3.1).

BR-A.2.9

All banks licensed by the Agency in the Kingdom of Bahrain are required to notify and report to the Agency on the following matters:

BR-A.2.10

All locally incorporated banks are required to give the Agency immediate written notification of any actual breach by such bank of the minimum Risk Asset Ratio(s) (RAR) in accordance with section BR-5.2.

BR-A.2.11

All FCBs banks licensed by the Agency in the Kingdom of Bahrain are required to notify and report to the Agency on the introduction of new and expanded customers and products (section BR-5.3).

BR-A.3.2

Prior to the development of the Rulebook, the Agency had issued various circulars representing regulations covering different aspects of BMA reporting structure. These circulars were subsequently compiled into a folder "Part 2: Reports" which was part of the information pack ("The Establishment, regulations and supervision of banks and other financial institutions in Bahrain") issued in 1997. The contents of that information pack have now been incorporated in this module.

BR-A.3.3

In addition, certain circulars have been incorporated in this module that supplement the BMA reporting requirements set out in the information pack mentioned in paragraph BR-A.3.2. These circulars and their evolution into this module are listed below:

BR-A.3.4

The contents in this module are effective from the date of the original circular (BR-A.3.3) or from the date of changes shown in BR-A.3.2.

BR-1.1.2

All banks, referred to under paragraph BR-1.1.1, are required to submit to the Agency their annual reports within 3 calendar months of the date of such reports.

BR-1.1.3

In addition to the reports required in paragraph BR-1.1.2, banks are also required to submit to the Agency the following information:

BR-1.1.4

In addition to the provisions of section AU-3.7, the Audited financial statements or the annual reports of these banks should be in full compliance with:

BR-1.2.2

All branches, referred to under paragraph BR-1.2.1, are required to submit to the Agency their annual audited financial statements of their Bahrain operations within 3 calendar months of the date of such statements. Such accounts must be prepared in a format agreed between the branch and its external auditors.

BR-1.2.3

In addition to the statements required in paragraph BR-1.2.2, branches are also required to submit to the Agency the following information:

BR-1.2.4

If specific provisions against the assets of a branch are maintained in the books of its head office, the Agency should be advised on an annual basis and in writing (along with the information listed under paragraph BR-1.2.3) of the amount of provisions set aside for the Bahrain branch's bad debts (and any other non-performing assets). For detailed guidance related to this subject, see section CM-4.3.

BR-1.2.5

The annual accounts should be in full compliance with the International Accounting Standards.

BR-2.1.2

Branches (referred to under paragraph BR-2.1.1) are required to submit to the Agency the following information (in the same format as their Annual Audited Accounts) for their Bahrain operation on a semi-annual basis (within eight weeks of the date of these statements):

BR-2.1.3

The statements mentioned under paragraph BR-2.1.2 should be in compliance with the requirements set out under section PD-2.2.

BR-3.1.2

PIR Forms — All banks, referred to under paragraph BR-3.1.1, must complete PIR forms (see Appendix BR 5), on a non-consolidated basis. This form is intended to be a financial report of the bank as a separate legal entity. Banks should therefore include on it all assets and liabilities of their head office and their branches in Bahrain and abroad. Separate figures in respect of the head office or "Bahrain operations" are not required.

BR-3.1.3

PIRC Forms — Further, on a consolidated basis, PIRC forms (see Appendix BR 6) must also be completed in all cases where a Bahrain-incorporated bank owns subsidiary companies. Please refer to International Accounting Standards Nos. 22, 24 & 27 for definitions, accounting and consolidation requirements applicable to subsidiaries.

BR-3.1.4

The forms referred to under paragraphs BR-3.1.2 and BR-3.1.3 should be submitted to the Agency on a quarterly basis within 20 calendar days of the end of the reporting date.

BR-3.1.5

For guidance on completion of PIR and PIRC, refer to guidelines under Appendix BR 4.

BR-3.1.6

The Agency requires all banks to request their external auditors to conduct a review of the prudential returns on a quarterly basis. The results of such review (in the form of a return review report) should be submitted to the Agency no later than 60 calendar days from the end of the subject quarter. A bank may apply for exemption from this requirement provided that it meets the criteria set out under paragraph BR-3.1.7 below.

BR-3.1.7

Banks which demonstrate to the satisfaction of the Agency that they have fulfilled all of the Agency's requirements with regard to Prudential Returns for at least two consecutive quarters may apply (in writing) to the Agency for an exemption from the review procedure set out in paragraph BR-3.1.6 above.

BR-3.1.8

All banks, referred to under paragraph BR-3.1.1, are required to submit to the Agency reviewed (unaudited) quarterly financial statements (in the same format as their Annual Audited Accounts) on a quarterly basis (within eight weeks of the date of these statements).

BR-3.1.9

The statements mentioned under paragraph BR-3.1.8 should be in compliance with the requirements set out under section PD-3.2.

BR-3.1.10

All banks, referred to under paragraph BR-3.1.1, are required to report to the Agency all large exposures (in accordance with the rules and guidance set out under chapter CM-5) on a quarterly basis using the return provided in the Appendix BR 3.

BR-3.1.11

All banks, referred to under paragraph BR-3.1.1, are required to send a brief prudential report (see Appendix BR 11) for any individual overseas branch within one month of the end of the relevant quarter.

BR-3.2.2

All branches, referred to under paragraph BR-3.2.1, are required by the Agency to complete PIRB forms (see Appendix BR 7) in accordance with guidelines set out under Appendix BR 4.

BR-3.2.3

These should be submitted to the Agency no later than 20 calendar days from the end of the said quarter.

BR-3.2.4

The Agency requires all banks to request their external auditors to conduct a review of the prudential returns on a quarterly basis. The results of such review (in the form of a return review report) should be submitted to the Agency no later than 60 calendar days from the end of the subject quarter. A bank may apply for exemption from this requirement provided that it meets the criteria set out under paragraph BR-3.2.5 below.

BR-3.2.5

Banks which demonstrate to the satisfaction of the Agency that they have fulfilled all of the Agency's requirements with regard to Prudential Returns for at least two consecutive quarters may apply (in writing) to the Agency for an exemption from the review procedure set out in section AU-3.2.

BR-3.3.2

All banks, referred to under paragraph BR-3.3.1, are required to submit the following quarterly statistical returns to the Financial Stability Directorate of the Agency:

(For instructions relating to the completion of the above mentioned returns, refer to Appendix BR 1 and for returns forms refer to Appendix BR 2)

BR-3.3.3

The returns included in Appendix BR 2 should be submitted to the Agency in electronic form (Excel spreadsheet) via email (to erdsr@bma.gov.bh) no later than the 10th of the month following the end of the relevant quarter. One printed copy should also be delivered to the Financial Stability Directorate by the same date.

BR-4.1.2

All banks, referred to under paragraph BR-4.1.1, are required to submit to the Agency (Financial Stability Directorate) the following monthly statistical returns:

(For instructions relating to the completion of the above mentioned returns, refer to Appendix BR 1 and for returns forms refer to Appendix BR 2)

BR-4.1.3

The returns included in Appendix BR 2 should be submitted to the Agency in electronic form (Excel spreadsheet) via email to erdsr@bma.gov.bh no later than the 10th of the month following the end of the relevant month. One printed copy should also be delivered to the Financial Stability Directorate by the same date.

BR-4.1.4

[This Paragraph deleted with effect from 1 July 2006].

BR-4.1.4a

The Banking Services Directorate will calculate the reserve requirement of each conventional bank licensee bank on a monthly basis using the figures reported in the monthly statistical report, Form SR-2 (see Rule BR-4.1.2 above) and will notify each bank of its required reserve (if any).

BR-4.1.4b

The monthly reserve requirements will be calculated as 5% of the total of a conventional bank licensee's BD deposits from non-banks and the BD Certificates of Deposit that it has issued to customers.

BR-4.1.4c

Reserve requirements, because of their scope of coverage (cf. Rule BR-4.1.4b), generally only apply to conventional retail bank licensees. They may apply, however, to conventional wholesale bank licensees, if they undertake on-shore business (cf. Section LR-1.2).

BR-4.3.2

All locally incorporated banks listed on the Bahrain Stock Exchange are required to report to the Capital Markets Supervision Directorate of the Agency the following information, on a monthly basis, relating to their Directors:

BR-4.3.3

The information required in paragraph BR-4.3.2 above should be submitted to the Agency no later than 15 days following the end of the relevant month.

BR-5.1.2

Should any bank find that, for reasons outside its control or otherwise, it has an exposure to an individual counterparty (other than an exempt exposure) which results in it exceeding any of the limits set out under Chapter CM-5, this should be reported immediately to the Agency for its consideration, and action should be taken immediately to bring the exposure back within applicable limits as soon as possible.

BR-5.1.3

All banks should notify the Agency, in writing, of all major changes (regardless of type and/or effect, including the establishment of branches, subsidiaries, SPVs and cross-border presences — see HC-1.5 for full text) to strategy or corporate plan prior to implementation.

BR-5.1.4

All banks should, on a continuous basis, keep the Agency informed, in writing, of the senior management positions held by relevant persons (including General Managers, Deputy General Managers and other senior persons). Such notification should include the following information:

BR-5.1.5

The Agency should also be notified of any changes to the positions mentioned under paragraph BR-5.1.4 that may occur from time to time subject to observing the requirements set out in sections HC-1.5 and HC-2.1.

BR-5.1.6

For detailed rules and guidance on prior notification of appointment and changes in management inventory, refer to chapter HC-1 and HC-2.

BR-5.1.7

All banks should notify the Agency of the following events, within 21 days of their occurrence:

BR-5.1.8

The appointment of a compliance manager/officer requires the Agency's prior approval (refer to section HC-3.2 for full details). The bank should also outline how the compliance function fits into the bank's senior management reporting structure, and should give details of relevant reporting lines within the bank.

BR-5.1.9

The Money Laundering Reporting Officer (or his/her duly authorised delegate) must send a report to the Compliance Directorate of the BMA where he/she knows or has suspicions that a transaction might involve money laundering or terrorist financing, either due to the customer's economic standing or because it meets one of the examples of suspicious transactions described in Appendix FC 3.

BR-5.1.10

The Agency should be sent copies of documentation relating to promotional schemes at least ten days prior to their launch for information purposes. Refer to chapter BC-1 for more details.

BR-5.1.11

In order to maintain an up-to-date record of authorised signatories of respective banks, the Agency requires all banks to submit to it a list of specimen signatures (and changes to it from time to time) of the officials authorised to sign on behalf of the concerned bank.

BR-5.1.12

The Agency requires all banks to notify it immediately of any act that might contravene the provisions of UN Security Council Resolution 1373 (2001). Banks should refer to chapter FC-8 for full details of this requirement.

BR-5.1.13

All banks must report immediately to the Agency any frauds, either attempted or realised, or any well-founded concerns about the integrity of individual Directors or members of management. This obligation to disclose extends to individual Board members and members of management: i.e. if a Director or member of management has reasonable grounds to believe that information that should have been reported to the Agency has not, then they have a duty to report the matter personally to the Agency. All such cases shall be treated in the strictest confidence by the Agency.

BR-5.1.14

All banks must report immediately to the Agency any material losses as soon as the bank becomes aware of them. This notification requirement is separate from notifications for loan write-offs (see BR-5.2.3) or frauds (see above), but refers to losses caused by external events (e.g. falls in stock markets) or internal control failures. In this context "material" would mean: a loss which exceeds 5% of net earnings in a given quarter; or a loss which reduces the bank's capital adequacy by more than 1%; or a loss which reduces total assets by more than 1%.

BR-5.1.15

All banks, referred to under paragraph BR-5.1.1, should notify the Agency of any transfer of funds amounting to BD 3,000 or above (or equivalent in other currencies) from accounts held by the bank for charitable organisations registered in the Kingdom of Bahrain (also see section FC-1.6). Such notification should include details of amount transferred, account name and number, and beneficiary (name and location).

BR-5.2.2

All banks, referred to under paragraph BR-5.2.1, must give the Agency immediate written notification of any actual breach by such banks of the minimum Risk Asset Ratio(s) (RAR) in accordance with section CA-2.5. Where such notification is given, the bank must also adhere to the additional notification and reporting requirements as set out under section CA-2.5.

BR-5.2.3

All banks, referred to under paragraph BR-5.2.1, should notify the Agency of any write-off of a credit facility, (i.e., loan, overdraft and any other credit facility) of an amount in excess of BD 100,000 (Bahraini Dinars One Hundred Thousand), or its equivalent in foreign currency. See section CM-7.1 for further details.

BR-5.3.2

All banks, referred to under paragraph BR-5.3.1, should notify the Agency of information relating to any new or expanded customer products and facilities in accordance with the requirements set out under section BC-4.7.