• Chapter Twelve Chapter Twelve Accounts and Statements of Banking Firms

    • Article 77

      A — The financial year of banking firms shall coincide with the calendar year.
      B — Every banking firm must, within a maximum period of three months after the end of every financial year, send to the Agency and make public the balance sheet and the profit and loss statement covering all the operations it has carried out until the end of the year. This shall be done in the form and manner to be specified by the Agency. The balance sheet and the profit and loss statement must be certified by the auditor.

    • Article 78

      A — The Agency may, by virtue of such regulations as it may from time to time issue, ask banking firms for such statements, particulars, or information pertaining to their operations in the State of Bahrain as may be necessary for the purposes of this Law.
      B — The Agency may publish, at the times it shall determine, any or all of the information it obtains pursuant to the provisions of this Law, provided, however, that no particulars or information shall be published that may result in divulging certain operations pertaining to a banking firm or to one of its customers without obtaining, prior to publication, a written consent from each party involved.
      C — The Agency shall not, without court order, disclose to any person any information relating to the affairs of any customer of a banking firm, if the Agency has obtained such information in the course of exercise of its function under the Law.

    • Article 79

      A — Every banking firm must, at the beginning of every financial year, appoint a technically qualified auditor acceptable to the Agency, whose duties shall consist of the preparation of a report on the annual balance sheet and the profit and loss statement to be submitted to the shareholders or owners, and as far as foreign banking firms are concerned, to be sent to their respective head offices abroad. In these reports, the auditor must state whether, in his opinion, the balance sheet and the profit and loss statement are complete, correct and properly drawn up, and whether they reflect a true and correct picture of the operations carried out by the banking firm. He must also state in the report whether the clarifications and information he had called for from the officials and agents of the banking firm are considered satisfactory.
      B — If a banking firm fails to appoint an auditor acceptable to the Agency, the Agency shall have the right to appoint an auditor. The banking firm shall pay the fees of the auditor whether he was appointed by the firm itself or by the Agency. However, in the case of the auditor who is appointed by the Agency, his fees shall be fixed by the latter.
      C — No person having an interest in a banking firm, with the exception of depositors, nor any director, official, employee, agent or representative of a banking firm, may be appointed as auditor of such a firm. In case the person appointed as auditor acquires, after such appointment, any interest in such firm or becomes a member of its Board of Directors or an official, employee, agent or representative of such firm, he shall be considered "removed" from the office of auditor forthwith.

    • Article 80

      In the case of banking firms organized in the form of corporations under the provisions of the laws of Bahrain, the auditors' report must be submitted with the Board of Directors report to the annual meeting of shareholders for discussion and approval.

    • Article 81

      The Agency may, at the request of any banking firm, allow an extension of the time limits set for the submission of any statements or documents to the Agency pursuant to the provisions of this law, if there are circumstances justifying such extension.