OM-7.1.1

The requirements in Section OM-7.1 apply to Bahraini conventional bank licensees, with respect to the business activities of the whole bank (whether booked in Bahrain or in a foreign branch). The requirements in Section OM-7.1 also apply to overseas conventional bank licensees, but only with respect to the business booked in their branch in Bahrain.

OM-7.1.2

With reference to Articles 59 and 60 the CBB Law, all conventional bank licensees must maintain books and records (whether in electronic or hard copy form) sufficient to produce financial statements and show a complete record of the business undertaken by a licensee. These records must be retained for at least 10 years according to Article 60 of the CBB Law.

OM-7.1.3

OM-7.1.2 includes accounts, books, files and other records (e.g. trial balance, general ledger, nostro/vostro statements, reconciliations and list of counterparties). It also includes records that substantiate the value of the assets, liabilities and off-balance sheet activities of the licensee (e.g. client activity files and valuation documentation).

OM-7.1.4

[This Paragraph was deleted in April 2011].

OM-7.1.5

Unless otherwise agreed with the CBB in writing, records must be kept in either English or Arabic; or else accompanied by a certified English or Arabic translation. Records must be kept current. The records must be sufficient to allow an audit of the licensee's business or an on-site examination of the licensee by the CBB.

OM-7.1.6

If a licensee wishes to retain certain records in a language other than English or Arabic without translation, the licensee should write to the CBB, explaining which types of records it wishes to keep in a foreign language, and why systematically translating these may be unreasonable. Generally, only loan contracts or similar original transaction documents may be kept without translation. Where exemptions are granted by CBB, the licensee is nonetheless asked to confirm that it will make available certified translations of such documents, if requested by CBB for an inspection or other supervisory purpose.

OM-7.1.7

Translations produced in compliance with Rule OM-7.1.5 may be undertaken in-house, by an employee or contractor of the licensee, provided they are certified by an appropriate officer of the licensee.

OM-7.1.8

Records must be accessible at any time from within the Kingdom of Bahrain, or as otherwise agreed with the CBB in writing.

OM-7.1.9

Where older records have been archived, or in the case of records relating to overseas branches of Bahraini conventional banks, the CBB may accept that records be accessible within a reasonably short time frame (e.g. within 5 business days), instead of immediately. The CBB may also agree similar arrangements for overseas conventional banks, as well as Bahraini conventional banks, where elements of record retention and management have been centralised in another group company, whether inside or outside of Bahrain.

OM-7.1.10

All original account opening documentation, due diligence and transaction documentation should normally be kept in Bahrain, if the business is booked in Bahrain. However, where a licensee books a transaction in Bahrain, but the transaction documentation is handled entirely by another (overseas) branch or affiliate of the licensee, the relevant transaction documentation may be held in the foreign office, provided electronic or hard copies are retained in Bahrain; the foreign office is located in a FATF member state; and the foreign office undertakes to provide the original documents should they be required.

OM-7.1.11

Licensees should also note that to perform effective consolidated supervision of a group (or sub-group), the CBB needs to have access to financial information from foreign operations of a licensee, in order to gain a full picture of the financial condition of the group: see Module BR (CBB Reporting), regarding the submission of consolidated financial data. If a licensee is not able to provide to the CBB full financial information on the activities of its branches and subsidiaries, it should notify the CBB of the fact, to agree alternative arrangements: these may include requiring the group to restructure or limit its operations in the jurisdiction concerned.

OM-7.1.12

In the case of Bahraini conventional banks with branch operations overseas, where local record-keeping keeping requirements are different, the higher of the local requirements or those contained in this Chapter must be followed.

OM-7.2.1

Conventional bank licensees must keep completed transaction records for as long as they are relevant for the purposes for which they were made (with a minimum period in all cases of five years from the date when the transaction was completed – see Module Section FC-7.1). Records of completed transactions must be kept whether in hard copy or electronic format, for at least five years from the date of the transaction as per the Legislative Decree No.(28) of 2002 with respect to Electronic Transactions "The Electronic Transaction Law" and its amendments.

OM-7.2.2

[This Paragraph has been deleted in July 2017].

OM-7.2.3

Rule OM-7.2.1 applies to all transactions entered into by a Bahraini conventional bank licensee, whether booked in Bahrain or in an overseas branch. With respect to overseas conventional bank licensees, it applies only to transactions booked in the Bahrain branch.

OM-7.2.4

In the case of overseas conventional bank licensees, Rule OM-7.2.1 therefore only applies to business booked in the Bahrain branch, not in the rest of the company.

Corporate Records

Customer Records

Promotional Schemes