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  • GR-7.1 GR-7.1 BMA Approval

    • GR-7.1.1

      An Islamic bank licensee wishing to suspend its operations and liquidate its business must notify the BMA in writing at least six months in advance of its intended suspension, setting out how it proposes to do so and, in particular, how it will treat any Shari'a money placements/deposits, and investment accounts, that it holds.

    • GR-7.1.2

      The notice period under Rule GR-7.1.1 is a statutory requirement, specified in Article 91 of the BMA Law 1973. Article 91, however, also provides for the notice period to be reduced, by prior agreement with the BMA, if in the BMA's view the rights of depositors are safeguarded.

    • GR-7.1.3

      If the Islamic bank licensee wishes to transfer assets or liabilities to a third party, it must comply with the requirements contained in Chapter GR-4.

    • GR-7.1.4

      If the Islamic bank licensee wishes to liquidate its business, the BMA will revise its license to restrict the firm from entering into new business. The licensee must continue to comply with all applicable BMA requirements until such time as it is formally notified by the BMA that its obligations have been discharged and that it may surrender its license.

    • GR-7.1.5

      An Islamic bank licensee in liquidation must continue to meet its contractual and regulatory obligations to depositors, other clients and creditors.

    • GR-7.1.6

      Once the Islamic bank licensee believes that it has discharged all its remaining contractual obligations to investment account holders, depositors, clients and creditors, it must publish a notice in two national newspapers in Bahrain approved by the BMA (one being in English and one in Arabic), stating that is has settled all its dues and wishes to leave the market.

    • GR-7.1.7

      The notice referred to in Paragraph GR-7.1.6 must include a statement that written representations concerning the liquidation may be sent to the BMA before a specified day, which shall not be earlier than sixty days after the day of the first publication of the notice. The BMA will not decide on the application until after considering any representations made to the BMA before the specified day.

    • GR-7.1.8

      If no objections to the liquidation are upheld by the BMA, then the BMA may issue a written notice of approval for the surrender of the license.