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  • Non-market Price Transactions

    • BC-8.9.8

      Conventional bank licensees must not enter into a non-market price transaction in any capacity, with or for a customer, if it has reasonable grounds to suspect that the customer is entering into the transaction for an illegal or improper purpose.

      Added: April 2008

    • BC-8.9.9

      For the purposes of Paragraph BC-8.9.8, a non-market price transaction is one where the price paid by the conventional bank licensee, or its customer, differs from the prevailing market price. With respect to transactions in financial instruments traded on a licensed exchange, licensees are reminded that in Bahrain the law prohibits off-market transactions.

      Amended: January 2011
      Added: April 2008

    • BC-8.9.10

      For the purposes of Paragraph BC-8.9.8, examples of improper purposes for transactions include:

      (a) The perpetration of a fraud;
      (b) The disguising or concealment of the nature of a transaction or of profits, losses or cash flows;
      (c) Transactions which amount to market abuse;
      (d) High-risk transactions under the Anti Money Laundering Regulations; and
      (e) "Window dressing", in particular around the year end, to disguise the true financial position of the person concerned.

      Added: April 2008

    • BC-8.9.11

      Rule BC-8.9.8 does not apply to a non-market-price transaction if it is subject to the rules of a recognised investment exchange.

      Added: April 2008