• BC-1 BC-1 Promotion of Financial Products and Services

    • BC-1.1 BC-1.1 Promotions

      • Introduction

        • BC-1.1.1

          The purpose of the content of this Section is to set out requirements pertaining to the promotion of financial services and products offered in/from Bahrain by Islamic retail bank licensees. For the purposes of this Section, promotions mean all types of promotional campaigns, competitions, merchant discount schemes/loyalty programmes or other schemes of similar nature offered to customers or prospective customers by means of incentives etc.

          Amended: January 2022
          Added: October 07

        • BC-1.1.2

          Islamic retail bank licensees must ensure that all the following requirements are met with regards to promotion of products or services:

          (a) They do not involve a breach of Bahrain law or any other relevant applicable law or regulation or Shari’a Principles;
          (b) All documentation concerning promotions is in a language necessary for customers to fully understand and appreciate the products or services;
          (c) Customers to whom promotions are directed must enjoy equal opportunity in terms of access to, and treatment within such schemes;
          (d) The communication concerning promotions must be clear, concise, truthful, unambiguous and complete to enable customers to make a fully informed decision; and
          (e) Where the promotion involves communication of earnings potential or benefits associated with the products or services promoted, all costs, charges or levies and risks are also disclosed.

           

          Amended: January 2022
          Amended October 2012
          Amended January 2011
          Added: October 2007

        • BC-1.1.3

          Licensees using character-limited media (e.g. social media platforms such as Instagram, Facebook etc.) as a means of promoting complex features of financial products or services should provide a reference or link to more comprehensive information available elsewhere.

           

          Amended: January 2022
          Amended January 2011
          Added: October 2007

        • BC-1.1.4

          Islamic retail bank licensees must ensure that the following requirements are met with regards to raffles/lotteries:

          (a) Adequate systems and documented procedures are in place that describe the checks and balances to ensure fair play, impartiality and the inclusion of eligible participants as well as for informing participants of the results of a raffle/lottery without delay;
          (b) They are subject to the rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry, Commerce and Tourism;
          (c) The raffle draw date of the announced prize/incentive/campaign is disclosed in advance to the public and that other subsequent announced prize/incentive/campaign follow the same approach. Raffle dates must not be postponed unless a valid reason is stated/indicated;
          (d) The winner(s) report includes the winner's name, CPR number, mobile number and the number of chances (e.g. tickets/ certificates) in the draw;
          (e) Each draw of the raffle/lottery held as part of the bank’s promotional scheme is independently verified and monitored/witnessed by the bank’s internal auditor and, additionally, draws involving prizes of BD 10,000 or above in aggregate must be independently verified and monitored/witnessed by the bank’s external auditors;
          (f) An annual check and a comprehensive audit on the “raffle draw” system is conducted by the external IT auditor. In addition, a detailed report in this regard from such auditor must be submitted to the CBB within 3 months from year-end and a copy is sent to the consumer protection department in the Ministry of Industry, Commerce and Tourism; and
          (g) The internal auditor periodically reviews, at least annually, all promotions, raffles/lotteries in addition to the systems, procedures, processes and related operational risks.

           

          Amended: January 2022
          Amended: April 08
          Added: October 07

      • General Requirements

        • BC-1.1.5

          The requirements of Paragraph BC-1.1.4 do not apply to promotions or giveaways generally offered and selected through draws to customers on an ad hoc basis (at no cost to the customer, implicit or otherwise). In such cases, there is no direct link between the acquisition of the products or services by the customers and the periodic raffle draw/lotteries.

           

          Amended: January 2022
          Amended: July 2015
          Amended April 2011
          Added April 2008

        • BC-1.1.6

          While there is to be no formal restriction on the types of incentive which may be used by institutions, care should be taken to ensure that promotional schemes do not negatively affect the integrity, reputation, good image and standing of Bahrain and/or its financial sector, and do not detrimentally affect Bahrain's economy.

          Amended: April 08
          October 07

        • BC-1.1.7

          Bearing in mind the reputation of, and the requirement to develop, the financial sector in Bahrain, as well as the need to act at all times in the best interests of the customer, retail Islamic bank licensees need to take adequate care to ensure that promotional schemes do not unreasonably divert the attention of the public from other important considerations in choosing an institution or a banking/financial product.

          Amended: April 08
          October 07

        • BC-1.1.8

          All documentation concerning promotional schemes should be in Arabic and English and, if relevant, any other language necessary for customers to fully understand and appreciate their terms and conditions. Such terms and conditions, including any related advertising, need to be clear, concise, truthful, unambiguous and complete so as to enable customers to make a fully informed decision.

          Amended: April 08
          October 07

        • BC-1.1.9

          Customers to whom promotional schemes are directed should enjoy equal opportunity in terms of access to, and treatment within, such schemes.

          Amended: April 08
          October 07

        • BC-1.1.10

          No costs (including funding costs), charges or levies associated with promotional schemes should be concealed from prospective customers.

          Amended: April 08
          October 07

        • BC-1.1.11

          All materials related to promotional schemes, particularly where raffles/lotteries etc. are concerned, must be maintained for a minimum period of 5 years (see Paragraph OM-7.3.4).

          Amended April 2011
          Amended April 2008
          October 2007

        • BC-1.1.12

          Any raffles/lotteries etc. held as part of promotional schemes should be independently monitored (e.g. by the institution's external auditor) and adequate systems put in place to ensure fair play and impartiality.

          Amended: April 08
          October 07

        • BC-1.1.13

          An appropriate system must also exist for informing participants of the results of a raffle without delay. Institutions must note that raffles may be subject to rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry and Commerce.

          Amended: July 2015
          Amended April 2011
          Amended January 2011
          Amended April 2008
          October 2007

        • BC-1.1.14

          Retail Islamic bank licensees may use small 'gifts' as an inducement to members of the public to use banks' services, provided such gifts are offered on a general basis and have a low monetary value.

          Amended: April 08
          October 07

        • BC-1.1.15

          Due note should be taken of the overriding provisions of Bahrain (and any other relevant) law in relation to institutions' duties to customers to the extent (if any) that promotional schemes might impact on such duties.

          Amended: January 2011
          Amended: April 2008
          October 2007

    • BC-1.2 BC-1.2 Advertisements

      • BC-1.2.1

        Islamic retail bank licensees must allow a means for customers to opt-out from receiving promotional or advertisement material through email, SMS, WhatsApp or other communication means should such customers want to opt-out. The opt-out can be in writing or electronically.

        Amended: January 2022
        Deleted: July 2021
        Added: July 2012

      • BC-1.2.2

        The CBB may, at its discretion, require the licensee to withdraw the advertisement or any material thereof, if it believes that the advertisement is not compliant with the requirements of this Module or that it has a negative impact on the financial sector or on the society.

         

        Amended: January 2022
        Deleted: July 2021
        Amended: April 2013
        Added: July 2012

      • BC-1.2.3

        Islamic retail bank licensees must ensure that advertisements:

        a) Are clear, fair, accurate and not misleading;
        b) Are simple to understand and presented in a way that is likely to be understood by the average person to whom it is directed; 
        c) Clearly state what the letters stand for if acronyms are used (for e.g. APR);
        d) Font size for all advertisements must be clear and readable, including footnotes;
        e) Terms and conditions are easily accessible by customers;
        f) Any concessionary offer/promotion in an advertisement contains the validity period of such offer/promotion;
        g) Clearly present any comparison or contrast (if any) in a fair and balanced way. Such comparison or contrast must be meaningful and presented in general terms, i.e. banks must avoid making direct comparisons of their products with those of their competitors;
        h) Are publicly announced by the licensee only;
        i) Clearly state the name of the bank, bank logo, and contact details;
        j) The name of the product and its details are clear to the customers;
        k) Include a proper link to the terms and conditions including fees and charges;
        l) Include a statement that the bank is licensed by CBB as a Islamic retail bank licensee; and
        m) Do not make use of the name of CBB in any advertisement in such a way that would indicate endorsement or approval of its products or services.

         

        Added: January 2022

         

      • BC-1.2.4

        Islamic retail bank licensees must ensure that advertisements do not:

        a) Include the expression ‘profit free’ or any similar expression when there is implicit profit embedded in the product or service;
        b) Include the descriptions of product or service as ‘free’ or ‘with no cost’ or any similar expression if any type of fee would be imposed;
        c) Include the descriptions of feature of a product or service as ‘guaranteed’ or ‘secured’ or use a similar expression unless the bank communicates all the necessary information, and present that information with sufficient clarity and prominence to make the use of that term fair, clear and not misleading;
        d) Contain any statement such as “the best in”, “the most competitive”, “the best rate in”, “the first in”, ‘the highest’ or ‘the lowest’ or ‘the best’ in the market unless it is fully supported by evidential documents;
        e) Emphasise any potential benefits of a product or service without also giving a fair and prominent indication of any relevant risks; and
        f) Disguise, omit, diminish or obscure important information, statements or warnings.

         

        Added: January 2022

      • Digital Advertisements

        • BC-1.2.5

          Islamic retail bank licensees must ensure that each digital advertisement through the internet/social media (e.g. Twitter, Instagram, WhatsApp, Facebook, web page, etc.) complies with the requirements in this Section.

           

          Added: January 2022

        • BC-1.2.6

          Where a licensee publishes customer feedback/review on the internet/social media, it must display both positive and negative feedback/review.

          Added: January 2022