[ A ]
Accepting Shari'a money placements
The acceptance of sums of money for safe-keeping ('al-wadia') in a Shari'a compliant framework, under which it will be repaid, either on demand or in circumstances agreed by the parties involved, and which is not referable to the giving of security.
Account Information Service
An 'account information service' is an online service which provides consolidated information to a payment service user on one or more payment accounts held by that payment service user with other account servicing payment service provider.
Added: December 2018Account Information Service Provider or AISP(s)
A person licensed by the CBB to undertake the activity of providing account information services online.
Added: December 2018Accredited investor(s)
Accredited investors are defined as investors meeting the following criteria:(a) Individuals who have a minimum net worth (or joint net worth with their spouse) of USD 1,000,000, excluding that person’s principal place of residence;(b) Companies, partnerships, trusts or other commercial undertakings, which have financial assets available for investment of not less than USD 1,000,000; or(c) Governments, supranational organisations, central banks or other national monetary authorities, and state organisations whose main activity is to invest in financial instruments (such as state pension funds).Individuals and commercial undertakings may elect in writing to be treated as accredited investors subject to meeting at least two of the following conditions:(a) The investor has carried out trading/investing transactions, in significant size (i.e. value of transactions aggregating USD 200,000) over the last 12-month period;(b) The size of the investor's financial assets portfolio including cash deposits and financial instruments is USD 500,000 or more; and/or(c) The investor works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged (i.e. the position was professional in nature and held in a field that allowed the client to acquire knowledge of transactions or services that have comparable features and a comparable level of complexity to the transactions or services envisaged).Amended: July 2022
Amended: October 2020
Added: January 2011Acquisition(s)
The acquiring by a bank of beneficial or legal ownership of capital instruments issued by another entity. This would not include securities underwriting until the expiry of the underwriting period (where separate arrangements apply elsewhere in Module CM). Acquisition may also be in the form of exercising of rights to take control of capital instruments pledged as collateral. The pledging of capital instruments by a customer to a bank as collateral (e.g. for the purpose of obtaining credit) does not in itself mean that an "acquisition" has taken place. Acquisition also does not include the establishment of new subsidiaries by the bank. Regulatory requirements for the establishment of SPVs and subsidiaries are contained in Chapter CA-5.2.
Amended: January 2015
Added: January 2011Administrators
Persons who administer
financial instruments and related services such as cash/collateral management. Such persons need to be registered by the BMA/CBB (cf. Volume 4, AU-1.3.2).Affiliate
An affiliate of a bank is defined as a company that controls, or is controlled by, or is under common control with, the bank. Control has the same meaning as when used in IFRS.
Added: January 2015Agency based contract for investments
Holders of investment accounts appoint the Islamic bank to invest their funds on the basis of an agency contract in return for a specified fee or a specified fee and share of the profit if the realised profit exceeds a certain level, the latter being an incentive for the Islamic bank to achieve a return higher than expected.
AML
Anti-Money Laundering
Ancillary service provider
A person licensed under Volume 5 of the CBB Rulebook to undertake regulated ancillary services. These licensees are referred to as 'financial sector support institutions' under Article 1 of the CBB Law.
Amended: December 2018Appointed expert(s)
A duly qualified individual or firm appointed by the CBB to carry out inspections in accordance with Article 114 of the CBB Law or special investigations of licensees in accordance with Article 121 of the CBB Law. Appointed experts may be appointed in addition to the CBB's own officials. Examples of appointed experts include reporting accountants, lawyers, private investigators, expert witnesses and independent actuaries.
Added: October 2011Approved person(s)
Persons undertaking certain functions in relation to CBB licensees require prior CBB approval. These functions (called controlled functions) include board members and those occupying executive positions. The controlled functions regime supplements the licensing regime by ensuring that key persons involved in the running of licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons (see Paragraph LR-1A.1.2).
Amended: January 2016
Amended: January 2011Articles of association
Legal document establishing a corporation, outlining its structure and purpose.
Asset revaluation reserves
An asset revaluation reserve is an accounting concept and represents a reassessment of the value of a capital asset as at a particular date.
Associate(d)
A company or other enterprise, which is not a subsidiary or joint venture, over which the bank licensee has significant influence. Significant influence means the power to participate in financial and operating policy decisions. Such influence is presumed to exist if the bank licensee owns more than 20 percent of the associate.
Auditor
The firm/partnership charged with carrying out the audit of a licensee and its partners, directors and managers (see Module AU).
Authorised Money or Value Transfer Service (MVTS) Provider(s)
Any bank or other licensee (such as a money changer) specifically authorised to effect money or value transfers.
Amended: October 2014
