Back Custom print Link Text Only Rich Text Print

  • BC-A BC-A Introduction

    • BC-A.1 BC-A.1 Purpose

      • BC-A.1.1

        This Module contains requirements that have to be met by conventional bank licensees with regards to their dealings with customers. The Rules contained in this Module aim to ensure that conventional bank licensees deal with their clients in a fair and open manner, and address their customers' information needs.

        October 07

      • BC-A.1.2

        The Rules build upon several of the Principles of Business (see Module PB (Principles of Business)). Principle 1 (Integrity) requires conventional bank licensees to observe high standards of integrity and fair dealing, and to be honest and straightforward in their dealings with customers. Principle 3 (Due skill, care and diligence) requires conventional bank licensees to act with due skill, care and diligence when acting on behalf of their customers. Principle 7 (Client Interests) requires conventional bank licensees to pay due regard to the legitimate interests and information needs of their customers, and to communicate with them in a fair and transparent manner.

        October 07

      • BC-A.1.3

        This Module also provides support for certain aspects relating to business and market conduct in the Bahrain Commercial Companies Law of 2001 (as amended).

        October 07

      • Legal Basis

        • BC-A.1.4

          This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) on business conduct by conventional bank licensees, and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 (CBB Law). The directive in this Module is applicable to all conventional bank licensees.

          Amended: January 2011
          October 07

        • BC-A.1.5

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          October 07

    • BC-A.2 BC-A.2 Scope of Application and Key Requirements

      • BC-A.2.1

        This Module applies to all conventional bank licensees unless indicated otherwise. The provisions of this Module do not apply to overseas branches and subsidiaries unless clearly stated otherwise.

        October 07

      • BC-A.2.2

        The remainder of this Module covers the following activities by conventional bank licensees:

        (a) Promotion of financial products and services (Chapter BC-1);
        (b) Code of Conduct for bank dealers and foreign exchange dealers (Chapter BC-2);
        (c) Client confidentiality (Chapter BC-3);
        (d) Customer account services and charges (Chapter BC-4);
        (e) Dishonoured cheques (Chapter BC-5);
        (f) ATMs and charges for their use (Chapter BC-6);
        (g) Margin Trading system (Chapter BC-7);
        (h) Investment Business related activities (Chapter BC-8);
        (i) Customer Complaints Procedures (Chapter BC-9); and
        (j) Measures and Procedures for Services Provided to Disabled Customers by Bahraini Retail Banks (Chapter BC-10).
        Amended: April 2016
        Amended: October 2011
        Amended: January 2011
        Amended: April 2008
        October 07

    • BC-A.3 BC-A.3 Module History

      • BC-A.3.1

        This Module was first issued in July 2004 by the BMA, as part of the conventional principles volume. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

        October 07

      • BC-A.3.2

        When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 1 was updated in October 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        October 07

      • BC-A.3.3

        The most recent changes to this Module are detailed in the table below:

        Summary of Changes

        Module Ref.Change DateDescription of Changes
        BC-4.101/01/05New minimum balance and charges regulations.
        BC-4.701/10/05Streamlined notification requirements regarding new products.
        BC-701/04/06Margin trading rules and guidance.
        BC-A.110/2007New Rule BC-A.1.4 introduced, categorising this Module as a Directive.
        BC-804/2008New conduct of business requirements for Investment Business
        BC-4.904/2008New requirement to comply with Code of Best Practice on Consumer Credit and Charging.
        BC-7.207/2009Removal of numerical restrictions related to margin trading requirement.
        BC-8.5.1710/2010Clarified the wording of Rule by replacing the term "legal" with "licensing".
        BC-A.1.401/2011Clarified legal basis.
        BC-1.1.1301/2011Corrected reference to Ministry of Industry and Commerce.
        BC-801/2011Changes made to reflect new definitions related to licensed exchange(s).
        BC-1.1.1104/2011Clarified retention period of records for promotional schemes.
        BC-3.1.1 and BC-4.3.104/2011Minor amendments to clarify Rules.
        BC-A.2.210/2011Added new Section to list of activities covered by this Module.
        BC-4.7.310/2011Deleted Paragraph. Reduced notification requirements on new or expanded products and facilities.
        BC-4.8.210/2011Updated name of Ministry of Justice and Islamic Affairs.
        BC-4.1010/2011Added new Section on transaction advice.
        BC-8.11 and BC-910/2011Replaced Section BC-8.11 dealing with complaints and added Chapter BC-9 Customer Complaints Procedures in line with results of consultation and made it applicable to all regulated banking services.
        BC-901/2012Minor corrections to correct typos and clarify language.
        BC-9.3.901/2012Paragraph deleted as it repeats what is in Paragraph BC-9.3.7.
        BC-6.1.604/2012Cross reference added.
        BC-6.1.10 and BC-6.1.1104/2012Rule clarified and split into one Rule and one Guidance Paragraphs.
        BC-8.2.104/2012Corrected cross reference.
        BC-1.207/2012Added Section on Advertisements for retail banking products and services
        BC-4.307/2012Corrected cross reference.
        BC-8.5.12A07/2012Added guidance to clarify promotion material from banks.
        BC-9.1.3A07/2012Added guidance on the appointment of the customer complaints officer.
        BC-1.1.210/2012Added cross reference to advertising requirements under Section BC-1.2.
        BC-4.310/2012Section amended to reflect outcome of consultation on disclosure of interest/profit rate fees and charges by retail banks.
        BC-4.810/2012Amended to make Rules clearer.
        BC-6.1.210/2012Clarified process for applications for the installation of off-site ATMs.
        BC-4.401/2013This Section was deleted and requirements are now covered under Section FC-1.6.
        BC-1.2.204/2013Corrected cross reference.
        BC-4.3.204/2013Clarified Rule on instances when customers must be kept informed of charges.
        BC-8.9.14 and BC-8.9.16(e)(v)04/2013Clarified Rules on allocations.
        BC-9.707/2013Additional details provided on reporting of complaints.
        BC-4.2.1510/2013Corrected cross-reference.
        BC-5.310/2013Updated penalty charges on dishonoured cheques.
        BC-6.301/2014Added new Section on local ATM network charges.
        BC-4.1104/2014Added new Section on donations to NGO accounts.
        BC-4.1210/2015Added new Section on credit check reports.
        BC-A.2.2, and BC-1004/2016Added new Section on Measures and Procedures for Services Provided to Disabled Customers by Bahraini retail banks.
        BC-6.304/2016Amendment to local ATM charges.
        BC-6.1.607/2016Deleted reference to Ministry of Interior.
        BC-4.710/2016Clarified Rules on notification for new or changes to customer products and facilities.
        BC-4.10.110/2016Amendment to Transaction Advice
        BC-4.10.210/2016Deleted Paragraph
        BC-7.2.510/2016Rectified term 'Credit Reference Bureau'
        BC-5A01/2017Added new Section on Return Policy – Post-Dated Cheques
        BC-10.1, BC-10.2 and BC-10.304/2017Amended Paragraphs to clarify applicability of Rules.
        BC-5.3.107/2017Amended Paragraph to include penalty charges on returned cheques for the reason of Insufficient Funds.
        BC-4.104/2018Deleted Section on "Minimum Balance and Charges on Savings Accounts".
        BC-4.1304/2018Added new Section on "Fees and Charges for Services Provided to Individuals".
        BC-5.3.204/2018Deleted Paragraph on "Dishonoured Cheques".
        BC-6.204/2018Deleted Section on "GCC ATM Network Charges".
        BC-6.304/2018Deleted Section on "Local ATM Network Charges".
        BC-4.1410/2018Added a new Section on Fees and Charges for Services Provided to Companies under Formation.
        BC-1110/2018Added a new Chapter on Financial Advice Programme.
        BC-4.3.2201/2019Amended Paragraph on disclosure of charges by retail banks.
        BC-4.3.2401/2019Amended Paragraph on disclosure to individual customers.
        BC-4.3.25A01/2019Added a new Paragraph on rounding off in transactions.
        BC-4.13.201/2019Added a new Paragraph on waived fees and charges.
        BC-4.1507/2019Added a new Section on Interest on Credit Card Transactions.
        BC-4.1610/2019Added a new Section on Interest on Credit Facilities.
        BC-6.110/2019Deleted Section.
        BC-10.2.201/2020Amended Paragraph.
        BC-4.1704/2020Added a new Section on Blocking Customer Accounts.
        BC-9.3.1504/2020Amended Paragraph adding reference to CBB consumer protection.
         04/2020Amended Paragraph adding reference to CBB consumer protection.
        BC-9.7.1 - BC-9.7.304/2020Amended Paragraph adding reference to CBB consumer protection.
        BC-B10/2020Added a new Chapter on Provision of Financial Services on a Non-discriminatory Basis.
        BC-4.1810/2020Added a new Section on Fund Transfers by Customers of Payment Service Providers (PSP).
        BC-4.1904/2021Added a new Section on ‘Merchant Fees on Payments to Zakat and Charity Fund’.
        BC-1.2.107/2021Deleted Paragraph.
        BC-1.2.207/2021Deleted Paragraph.
        BC-4.3.607/2021Amended Paragraph.
        BC-1.101/2022Added new enhanced Section on Promotions.
        BC-1.201/2022Added new enhanced Section on Advertisements.
        BC-4.2001/2022Added a new Section on Dormant Accounts and Unclaimed Balances.
        BC-11.1.301/2022Deleted Paragraph.
        BC-2.8.204/2022Deleted Subparagraph (b).
        BC-4.20.707/2022Amended Paragraph on dormant accounts activity.
        BC-11.1.107/2022Amended Paragraph on the Financial Advice Program (FAP).
        BC-4.2101/2024Added a new Section on Insurance cover on loans.

      • Effective Date and Evolution of the Module

        • BC-A.3.4

          Prior to the Rulebook, the CBB had issued various circulars representing regulations covering different aspects of Business and Market Conduct. The contents of this Module are effective from the date depicted in the original circulars listed below or from the dates indicated in Paragraph BC-A.3.3 above:

          Circular Ref. Date of Issue Module Ref. Circular Subject
          EDBC/73/96 1 May 1996 BC-1.1 Explanatory note on the promotion of Banking and Financial Products.
          BS.C7/91/442 10 Sep 1991 BC-1.1 Promotion of Banking Services.
          85/25 2 May 1985 BC-2 Code of Conduct for Foreign Exchange Dealers and Brokers.
          83/5 10 Apr 1983 BC-3 Disclosure of Information about Individual Accounts.
          BS/11/2004 10 Aug 2004 BC-4.1 Min balances and savings accounts.
          BS.C7/90/34 31 Jan 1990 BC-4.2 Dinar Certificates of Deposits.
          EDBO/51/02 2 Apr 2002 BC-4.3 Charges to Customers.
          BC/5/00 8 Mar 2000 BC-4.4 Accounts held for Clubs and Societies.
          BSD(111)/94/157 24 Sep 1994 BC-4.5 Fees on Current Accounts.
          BC/2/01 3 Mar 2001 BC-4.6 Brokerage Fees in Bahrain.
          ODG/145/92 18 Aug 1992 BC-4.7 New products in the Retail Banking Field.
          EDBO/46/03 8 Apr 2003 BC-4.8 Inheritance — Financial Procedures.
          EDBO/27/96 25 Sep 1996 BC-5.1 Regulation for "Dishonoured Cheques".
          OG/399/94 28 Nov 1994 BC-5.2 Returned Cheques.
          EDBO/49/01 6 May 2001 BC-5.3 Penalty Charges on Returned Cheques.
          BC/8/98 24 May 1998 BC-6.1 Off-site ATMs.
          EDBO/45/02 13 Mar 2002 BC-6.2 GCC ATM Network Charges.
          BC/15/99 17 Jul 1999 BC-7.1 Margin Trading.
          EDBS/KH/C/73/2018 22 Nov 2018 BC-4.3.25A Rounding off in Transactions.
          Amended: January 2019
          Amended: October 2010
          October 07