HC-B HC-B Scope of Application
HC-B.1 HC-B.1 Scope of Application
HC-B.1.1
The contents of this Module - unless otherwise stated - apply to all
conventional bank licensees , incorporated under the Legislative Decree No. 21 of 2001, with respect to promulgating the Commercial Companies Law ('Company Law').October 2010HC-B.1.2
Overseas conventional bank licensees must satisfy the CBB that equivalent arrangements are in place at theparent entity level, and that these arrangements provide for effective high-level controls over activities conducted under the Bahrain license.October 2010HC-B.2 HC-B.2 Subsidiaries and Foreign Branches
HC-B.2.1
Bahraini conventional bank licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their foreignbranches , located outside the Kingdom of Bahrain, such that these are also subject to effective high-level controls. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.October 2010HC-B.2.2
Bahraini conventional bank licensees must satisfy the CBB that financial services activities conducted insubsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.Amended: January 2012
October 2010HC-B.2.3
Where a
conventional bank licensee is unable to satisfy the CBB that itssubsidiaries and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — to the licensee arising from inadequate high-level controls in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between the licensee and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of the licensee, then its authorisation may be called into question.October 2010
