EN-10 EN-10 Criminal sanctions
EN-10.1 EN-10.1 Overview
EN-10.1.1
The BMA Decree — Law No. 23 of 1973 ("BMA Law") provides for a number of criminal sanctions in cases where certain of its provisions are contravened. This section provides a summary of those sanctions most relevant to licensees, their Directors and employees. What follows is not a complete list of all sanctions provided for in the BMA Law, nor is it a substitute for reading the Law and being fully aware of its provisions.
EN-10.1.2
Licensees, their Directors and employees should also be aware of the criminal sanctions provided for under other relevant Bahraini laws, such as the Decree — Law No. 4 of 2001, with respect to the prevention and prohibition of the laundering of money.
EN-10.1.3
In all cases to do with criminal sanctions, the Agency can only refer the matter to the Office of Public Prosecutor. The Agency has no authority to apply such sanctions without recourse to the courts.
EN-10.2 EN-10.2 BMA policy
EN-10.2.1
Because of their criminal status, and their provision for custodial sentences, the sanctions provided for under the BMA Law are viewed by the Agency as very powerful measures, to be pursued sparingly. In most situations, the Agency will seek to address regulatory failures through administrative sanctions, as outlined in preceding sections, rather than by pursuing the criminal sanctions outlined here.
EN-10.2.2
Where, however, the nature of the offence is such that there is strong evidence of a reckless or intentional breach of the BMA Law relevant to the following Articles, then the Agency will usually refer the matter to the Office of Public Prosecutor.
EN-10.3 EN-10.3 Article 87
EN-10.3.1
Article 87 of the BMA Law provides for a term of imprisonment of up to two years, and/or a fine of up to BD 5,000, without prejudice to any other penalty prescribed in any other law, in case of conviction of a Director, manager, official, agent or representative of any licensee who:
(a) makes false or misleading statements with fraudulent intent;(b) omits, with fraudulent intent, to make any statement or any entry in the books or accounts of the banking firm;(c) obstructs the performance of the auditor's duties; and(d) obstructs an investigation conducted by inspectors appointed by the Agency.EN-10.4 EN-10.4 Article 88
EN-10.4.1
Article 88 provides for a term of imprisonment of up to six months, and/or a fine of up to BD 1,000, for any Director, manager or official responsible for the direction or management of a licensee, who deliberately neglects to ensure the implementation of the provisions of the BMA Law.
EN-10.5 EN-10.5 Article 92
EN-10.5.1
Article 92 C provides for a term of imprisonment of up to two years, and/or a fine of up to BD 5,000, for any Director, manager, official or employee, who receives or approves the acceptance of deposits although he is aware — or ought to be aware by reason of the nature of his duties — of the insolvency of his bank.
