• Chapter Fourteen Chapter Fourteen Miscellaneous Provisions Pertaining to Banking Firms

    • Article 85

      A — Without prejudice to any of the provisions of the laws in force in the State of Bahrain in respect of companies, if any person acting as director, manager or official responsible for the direction or management of a banking firm, is convicted of a crime affecting honesty or is declared bankrupt, or if his legal capacity is totally or partially impaired by Court decision, such person shall be considered removed from his office.
      B — A person who was acting as a director, manager or official responsible for the direction or management, or was directly or indirectly involved in the direction or management of a banking firm in respect of which a decision was issued cancelling its license, shall not act or continue to act in such capacity or be directly or indirectly involved in the management of any other banking firm without the Agency's approval.

    • Article 86

      A — Every director, manager, official responsible for the direction or management of a banking firm, who has, in any form or in any direct or indirect way, an interest in any loan granted by such banking firm, shall submit as soon as possible a written statement to the Board of Directors or to any other body responsible for the direction or management of such firm setting for the nature of such interest. This obligation shall not apply to any such persons if his interest is merely limited to his being a creditor of or a part owner of an establishment desirous of benefiting from a loan it obtains from the banking firm, where such interest in both its form referred to cannot by any means be considered important.
      B — In the application of paragraph (A), any statement made by a director, manager or other responsible official of a banking firm with regard to his interest in any loan which such firm may grant after the date of such a statement, shall be considered to be an adequate statement if:
      1. He specifies in the statement the nature and extent of his interest.
      2. His interest when the loan is granted does not differ in nature, nor exceed in extent, the nature and extent set forth in his statement.

    • Article 87

      A director, manager, official, agent or representative of any banking firm shall not:

      A — Make false or misleading statements with fraudulent intent.
      B — Omit, with fraudulent intent, to make any statement or any entry in the books or accounts of the banking firm.
      C — Obstruct the performance of the auditor's duties under the provisions of this Law.
      D — Obstruct the investigation conducted by inspectors appointed and duly authorized by the Agency

      Without prejudice to any severe penalty prescribed in any other law, whoever commits any one of these acts shall be punished by a term of imprisonment not exceeding two years and/or a fine of not more than 5,000 (five thousand) dinars.

    • Article 88

      Any director, manager or official responsible for the direction or management of a banking firm who deliberately neglects to take all necessary action to ensure the implementation of the provisions of this Law by such banking firm, shall be punished by a term of imprisonment not exceeding six months and/or a fine of not more than 1,000 (one thousand) dinars.

    • Article 89

      A — Banking firms shall be open for business to the public every day, except holidays, during the working hours to be approved by the Agency.
      B — The Agency shall, by a regulation it shall issue, announce bank holidays during which no banking firm shall be open for business to the public, whether such holidays are official or unofficial.

    • Article 90

      Obligations that can be discharged only at the place of business of a banking firm and come to maturity on a given day or hour when such a firm is not open for business to the public in accordance with the provisions of Article (89), shall be considered as coming to maturity on the first working day immediately following such holiday.

    • Article 91

      Every banking firm that intends to suspend its operations in the State of Bahrain, shall give the Agency prior notice to this effect. The notice period shall not be less than six months. The Agency may, however, agree to reduce the prescribed notice period if it is satisfied that the rights of depositors are safeguarded. The Agency must make sure that the banking firm wishing to suspend its operations discharges all its obligations to depositors and other creditors. This shall be ascertained in accordance with the rules and measures to be determined by the Agency In this respect.