• BR BR CBB Reporting Requirements

    • BR-A BR-A Introduction

      • BR-A-1 BR-A-1 Purpose

        • Executive Summary

          • BR-A.1.1

            The purpose of this Module is to set out the Central Bank of Bahrain's ('CBB') reporting requirements applicable to the banks as part of the CBB's ongoing supervision activities.

            Amended: January 2011
            October 2010
            October 07

          • BR-A.1.2

            This Module provides support for certain other parts of the Rulebook, mainly:

            (a) Principles of Business;
            (b) Public Disclosure;
            (c) Credit Risk Management;
            (d) Operational Risk Management;
            (e) Financial Crime;
            (f) Capital Adequacy;
            (g) High-level Controls;
            (h) Business and Market Conduct;
            (i) Enforcement; and
            (j) Audit Firms.
            October 2010
            October 07

          • BR-A.1.3

            Unless otherwise stated, all reports referred to in this Module should be addressed to Islamic Financial Institutions Supervision Directorate of the CBB.

            Amended: January 2011
            October 07

        • Legal Basis

          • BR-A.1.4

            This Module contains the CBB's Directive (as amended from time to time) relating to reporting requirements of the CBB and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to Islamic bank licensees.

            Amended: January 2011
            October 07

          • BR-A.1.5

            For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

            October 07

      • BR-A.2 BR-A.2 Key Requirements

        • Regular Reporting – Annual Requirements

          • BR-A.2.1

            All locally incorporated banks in the Kingdom of Bahrain are required to submit to the CBB their annual audited financial statements (in compliance with the provisions set out under Section BR-1.1) no later than 3 months from the end of the bank's financial year. In addition, these banks are also required to submit supplementary information (as listed under Section BR-1.1) to the CBB.

            October 2010
            October 07

          • BR-A.2.2

            All Bahrain branches of foreign banks are required to submit to the CBB their annual audited financial statements (in compliance with the provisions set out under Section BR-1.2) no later than 3 months from the financial year end. In addition, these banks are also required to submit supplementary information (as listed under Section BR-1.2) to the CBB.

            Amended: April 2016
            October 2010
            April 2008
            October 07

        • Regular Reporting – Semi-annual Requirements

          • BR-A.2.3

            All Bahrain retail branches of foreign banks are required to submit to the CBB their Balance Sheet and Profit and Loss Accounts (in compliance with the provisions set out under Section BR-2.1) no later than the end of 2 months from the reporting period end.

            Amended: April 2016
            Amended: April 2011
            October 2010
            October 07

        • Regular Reporting – Quarterly Requirements

          • BR-A.2.4

            All Bahraini Islamic Bank Licensees in the Kingdom of Bahrain are required to submit to the CBB the following information on a quarterly basis:

            (a) PIR Forms and auditors reviews thereon (in accordance with the provisions set out under Section BR-3.1); and
            (b) Reviewed (unaudited) quarterly financial statements (in accordance with the provisions set out under Section BR-3.1).
            Amended: April 2019
            Amended: October 2011
            Amended: October 2010
            Amended: April 2008
            October 07

          • BR-A.2.5

            All Bahrain branches of foreign banks are required to submit to the CBB PIR Forms (in accordance with the provisions set out under Section BR-3.2).

            October 2010
            January 2009
            October 07

          • BR-A.2.6

            [This Paragraph was deleted July 2011].

        • Regular Reporting – Monthly Requirements

          • BR-A.2.7

            All banks licensed by the CBB in the Kingdom of Bahrain are required to submit to the CBB monthly statistical returns as required under Section BR-4.1).

            October 2010
            October 07

          • BR-A.2.7A

            All banks licensed by the CBB in the Kingdom of Bahrain are required to report monthly to the CBB of all payments and transfers of funds amounting to BD 3,000 or above from accounts held by the bank for charitable organisations registered in the Kingdom of Bahrain (as required under Paragraphs BR-4.1.5 and FC-1.6.4).

            Added: October 2011

          • BR-A.2.8

            All Bahraini Islamic Bank Licensees listed on the Bahrain Stock Exchange are required to report to the Capital Markets Supervision Directorate of the CBB, on a monthly basis, information relating to their Directors' interests in the shares of Bahraini Islamic Bank Licensees listed on the Bahrain Stock Exchange and submit exposures to connected counterparties to Banking Supervision Directorate (in accordance with the provisions set out under Section BR-4.3).

            Amended: April 2019
            Amended: October 2010
            Amended: October 2009
            October 2007

        • IIS Reporting Requirements

          • BR-A.2.8A

            All banks licensed by the CBB are required to complete online non-financial information related to their institution by accessing the CBB's institutional information system (IIS) (as required under Section BR-4A.1).

            Amended: October 2020
            Amended: April 2012
            Adopted: January 2011

        • Ad-hoc Reporting and Notification

          • BR-A.2.9

            All banks licensed by the CBB in the Kingdom of Bahrain are required to notify and report to the CBB on the following matters in Section BR-5.1:

            (a) Large exposures;
            (b) Changes in strategy and/or corporate plan;
            (c) Changes in management;
            (d) [This Sub-paragraph was deleted in October 2023];
            (e) Appointment of a Compliance Manager/Officer;
            (f) Money laundering and suspicious transactions;
            (g) [This sub-paragraph was deleted in October 2022];
            (h) Authorised signatories;
            (i) Material losses through write-offs, fraud or other events;
            (j) Material transfers of assets or liabilities; and
            (k) Enforcement actions imposed by host regulators on overseas subsidiaries and branches.
            Amended: October 2023
            Amended: October 2022
            Amended: October 2020
            October 2010
            April 2010
            October 2007

          • BR-A.2.10

            All Bahraini Islamic Bank Licensees are required to give the CBB immediate written notification of any actual breach by such bank of the minimum Risk Asset Ratio(s) (RAR) and to consult with the CBB prior to entering into any term borrowing arrangements (Section BR-5.2).

            Amended: April 2019
            Amended: April 2012
            Amended: October 2010
            October 07

          • BR-A.2.11

            All retail banks licensed by the CBB in the Kingdom of Bahrain are required to notify the CBB on the following matters:

            (a) Introduction of new and expanded customers and products (Section BR-5.3); and
            (b) Accounts for charity organisations (Section BR-5.3).
            Amended: October 2011
            October 2010
            October 07

          • BR-A.2.12

            Islamic bank licensees must clearly indicate the purpose of any communication addressed to the CBB. In cases of lack of response to such communication by the CBB, the licensee must not infer or assume implied acceptance, approval or acknowledgment of the contents of such communication.

            Added: October 2019

      • BR-A.3 BR-A.3 Module History

        • BR-A.3.1

          This Module was first issued in January 2005 by the BMA as part of the initial launch of the CBB Rulebook Volume for Islamic banks. All regulations in this volume have been effective since this date. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change is made: UG-3 provides further details on Rulebook maintenance and version control.

          October 07

        • BR-A.3.2

          When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 2 was updated in October 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

          October 07

        • BR-A.3.3

          The most recent changes made to this Module are detailed in the table below:

          Summary of changes

          Module Ref.Change DateDescription of Changes
          BR-4.201/07/06Deletion of reserve requirements material (moved to BR 4.1).
          BR-3.1.301/07/06Hard copies of PIRI no longer required.
          BR-4.1.301/07/06Revised submission date for statistical returns.
          BR-5.1.901/07/06Minor changes reflecting change of Compliance Unit to Directorate.
          BR-5.3.301/07/06Deleted since duplicated BR-5.1.15.
          BR-A.110/2007New Rule BR-A.1.4 introduced categorising this Module as a Directive.
          BR-610/2007New Rule allowing access to premises per the provisions of the CBB Law.
          BR-A.2, BR-1.1, BR-3.1, BR-4.1, BR-5.204/08New reporting deadlines, new 7% reserves ratio, new requirement for checking of PIRs by external auditors, new guidance on reporting of write-offs.
          BR-3.1.401/2009New Agreed Upon Procedures report for PIR
          BR-1.101/2009Revised guidance concerning annual reports and annual audited financial statements
          BR-4.1.4b07/2009The minimum daily cash reserve balance with the CBB brought back to 5% from 7%
          BR-A.2.8 and BR-4.3.410/2009New reporting arrangements for exposures to connected counterparties.
          BR-A.2.9 and BR-5.1.1604/2010Approval for material transfers of assets or liabilities
          BR-A.2.210/2010Due date changed to 3 months to be consistent in the Rulebook.
          BR-1.1.4 and BR-1.2.310/2010Required information updated to be consistent in the Rulebook.
          BR-1.2.510/2010Changed to a Rule and wording amended to be consistent in the Rulebook.
          BR-3.1.210/2010Reference to legal entity deleted.
          BR-3.1.310/2010Wording changed to be consistent in the Rulebook.
          BR-A.2.3 and 2.1.210/2010Due date changed to 2 months to be consistent in the Rulebook.
          BR-3.210/2010New Section added to be consistent in the Rulebook.
          BR-5.110/2010Reference corrected.
          BR10/2010Minor changes to formatting and spelling to be consistent in the Rulebook.
          BR-A.1.401/2011Clarified legal basis.
          BR-A.2.9A01/2011Added reference to IIS Reporting Requirements
          BR-4A01/2011Added new Chapter on other reporting requirements and refer to IIS reporting requirements.
          BR-A.2.304/2011Corrected order of wording.
          BR-1.2.304/2011Clarified due date.
          BR-4.3.204/2011Reference changed to licensed exchange.
          BR-4.3.304/2011Clarified reference to calendar days.
          BR-5.1.1 and BR-5.1204/2011Clarified to whom Rules apply.
          BR-5.1.704/2011Clarified due date for notification.
          BR-5.1.1004/2011Clarified reference to calendar days.
          BR-A.2.6, BR-3.2 and BR-4.107/2011Clarified that all statistical returns must be filed monthly.
          BR-1.1.4(i)07/2011Deleted incorrect cross reference.
          BR-3.1A.207/2011Corrected reference for quarterly reporting by branches of foreign banks.
          BR-5.1.1607/2011Regulation under consultation.
          BR-5.1.1707/2011Added additional notification requirements.
          BR-A.2.4 and BR-A.2.7A10/2011Key requirement amended to reflect current reporting requirement.
          BR-A.2.1110/2011Clarified language to be in line with references in BR-5.3 and BC-4.7.
          BR-1.1.3 and BR-2.210/2011Clarification of existing requirement for the Agreed Upon Procedures Report and setting a deadline for the submission of the report.
          BR-3.1.8 and BR-3.1A.610/2011New requirements for reporting of complaints in accordance with BC-10.7.1.
          BR-4.1.5 and BR-5.1.1510/2011Updated to reflect change in reporting requirement from ad-hoc to monthly.
          BR-610/2011Updated Chapter to be consistent with other Volumes of the Rulebook.
          BR-6.1 and BR-6.401/2012Added Sections to be consistent with other Volumes of the CBB Rulebook.
          BR-6.5.2101/2012Corrected cross reference.
          BR-A.2.9A04/2012Corrected cross reference.
          BR-1.1.4 and BR-1.1.604/2012Minor amendments.
          BR-1.2.3(d) and BR-1.2.3A04/2012Amended due date of head office's annual audited financial statements.
          BR-2.1.204/2012Clarified what interim semi-annual statements are to be submitted by retail branches of foreign banks.
          BR-A.2.10 and BR-5.2.504/2012Requirement for locally incorporated banks to consult with CBB prior to entering into any term borrowing arrangements.
          BR-5.1.4 and BR-5.1.504/2012Paragraph BR-5.1.4 deleted and BR-5.1.5 amended as any changes to approved persons must receive CBB prior approval as per Paragraph LR-1A.1.23.
          BR-5.3.404/2012Added cross reference to Section BC-6.1 on installation or removal of off-site ATM in Bahrain.
          BR-3.1.507/2012Clarified the exemption status for requirements under Paragraph BR-3.1.4
          BR-5.1.1107/2012Added requirement to provide details of what authorised signatories are authorised to sign for.
          BR-4A.1.101/2013Clarified deadline to update IIS.
          BR-1.1.4(g) and BR-1.1.4A04/2013Clarified due date for report on board meetings to be in line with Paragraph HC-1.3.8.
          BR-1.1.4(k)04/2013Added Subparagraph to include report on controllers as required under Paragraph GR-5.1.9.
          BR-5.1.304/2013Amended to clarify that CBB prior approval is required and also added requests for capital increases.
          BR-4A.207/2013Added new Section on reporting requirements for internet security measures.
          BR-1.1.4(l), BR-1.2.3(f), BR-1.3, BR-4A.3 and BR-4A.401/2014New reporting requirements added related to sound remuneration practices for banks.
          BR-5.1.701/2014Added notification for any changes in financial instrument traders.
          BR-1.404/2014Added requirement for all retail banks to submit the eligible accounts report for the deposits/unrestricted investment accounts protection scheme.
          BR-2.204/2014Added requirement for semi-annual report on private placements issued or promoted by banks.
          BR-5.104/2014Amended notification requirements.
          BR-5.204/2014Clarified Rules applicable to Bahraini Islamic bank licensees pertaining to SPVs.
          BR-5.3.504/2014Added notification requirement where retail banks receive funds from an NGO where no valid fund collection license was submitted.
          BR-1.3.107/2014Changed due date for Details of remuneration paid report.
          BR-3.1.6A07/2014Added quarterly reporting requirements regarding interim financial statements as per 22 January 2014 ad hoc communication letter.
          BR-3.1.7A to BR-3.1.7C07/2014New quarterly reporting requirements added for details of large exposures and overseas subsidiaries and branches.
          BR-4A.3.107/2014Noted exception to requirement to submit report on the bank's compliance with the remuneration rules.
          BR-1.1.4(e)10/2014Corrected terminology for reporting of restructured facilities.
          BR-1.2.310/2014Reference added to new reporting form Appendix BR-21 for non-performing and restructured facilities.
          BR-2.310/2014New Section added on semi-annual disclosure requirements for all branches of foreign banks.
          BR-3.1.6A10/2014Reference added to new form Appendix BR-20 for quarterly financial review.
          BR-3.1.7B10/2014Corrected the reporting requirements dealing with overseas banking subsidiaries.
          BR-2.1.301/2015Corrected wording of Rule.
          BR-4A.2.101/2015Clarified that Rule is applicable to all banks to be consistent with Section OM-6.2.
          BR-5.2.201/2015Corrected cross reference and terminology.
          BR-5.2.9 to BR-5.2.1801/2015Rules and guidance transferred from Module PCD.
          BR-2.2.404/2015Amended deadline for submission of report on private placements to within three months of the reporting period.
          BR-3.1.5A04/2015Existing exemptions in respect of PIRI review will cease as at 31st December 2014 for all Bahraini Islamic bank licensees.
          BR-4A.307/2015Amended Section to allow for CBB-approved consultancy firm to prepare report on the bank's compliance with the remuneration Rules outlined in Chapter HC-5.
          BR-A.2.2, BR-A.2.3, BR-1.1.2 and BR-1.2.204/2016Clarified due date for financial statements.
          BR-1.104/2016Added Rule regarding submission of draft year-end financial statements and attendance at CBB meeting with supervisory point of contact and external auditor.
          BR-1.1.4A and BR-1.1.4B07/2016Added guidance for subsidiaries of banks and renumbered Paragraph.
          BR-1.1.607/2016Requirements aligned with PD-1.2.6.
          BR-3.1.410/2016Deleted repetition to BR-3.1.7
          BR-1.1.404/2017Added sub-paragraph (m) on CPD requirements.
          BR-1.2.304/2017Added sub-paragraph (g) on CPD requirements.
          BR-4A.504/2017Added new Section on On-site Inspection Reporting
          BR-1.1.4(j)07/2017Deleted sub paragraph (j) & relocated to BR-1.1.4C.
          BR-1.1.4B07/2017Amended wording of paragraph.
          BR-1.1.4C07/2017Added new paragraph to amend submission deadline of agreed upon procedures report.
          BR-4A.4.107/2017Amended submission deadline.
          BR-3.1.7AA10/2017Added a new paragraph on submission of Largest Country Exposures.
          BR-1.2.307/2018Amended Paragraph to clarify submission deadline.
          BR-4A.2.207/2018Amended cross reference.
          BR-5.1.707/2018Deleted Paragraph.
          BR-1.1.410/2018Added a new sub-paragraph (n) on the Financial Advice Programme/course.
          BR-1.2.310/2018Added a new sub-paragraph (h) on the Financial Advice Programme/course.
          BR-1.1.401/2019Amended Paragraph to include IESCA communication.
          BR-1.1.4(a)04/2019Added IESCA's assurance report to the requirements.
          BR-1.1.4(e)04/2019Deleted sub-paragraph.
          BR-1.2.3(b)04/2019Deleted sub-paragraph.
          BR-2.304/2019Deleted Section.
          BR-3.1.5B04/2019Added a new Paragraph on Information required for Annual and Interim Financial Review.
          BR-3.1A.5A04/2019Added a new Paragraph on Information required for Annual and Interim Financial Review.
          BR04/2019Changed all Locally incorporated to Bahraini Islamic Bank Licensees.
          BR-4.3.507/2019Added a new Paragraph on new form Appendix BR-23 for Liquidity Coverage Ratio (LCR) Reporting
          BR-A.2.1210/2019Added a new Paragraph on licensees communications.
          BR-5.2.11(e)01/2020Amended sub-paragraph on SPVs.
          BR-5.2.1201/2020Amended Paragraph on SPVs.
          BR-5.2.1204/2020Amended Paragraph on SPV Reporting.
          BR-5.2.1207/2020Added a new sub-paragraph (d) on credit facilities granted to SPVs.
          BR-A.2.910/2020Added a new sub-paragraph (k) on ad-hoc reporting and notification.
          BR-A.2.9A10/2020Amended Paragraph number to BR-A.2.8A.
          BR-2.1.2A07/2021Added a new Paragraph on submission of documents to the CBB prior publishing.
          BR-3.1.5B07/2021Deleted Paragraph.
          BR-3.1.6A07/2021Amended Paragraph on submission of reporting forms.
          BR-3.1A.5A07/2021Amended Paragraph on submission of reporting forms for retail branches of foreign banks
          BR-3.1A.5B07/2021New Paragraph on submission of reporting form for wholesale branches of foreign banks.
          BR-4A.607/2021Added a new Section on Reporting of API Performance.
          BR-5.2.807/2021Amended Paragraph on CBB’s prior approval for any proposed capital increase in a subsidiary and for any major changes.
          BR-1.1.401/2022Deleted Sub-paragraph (n).
          BR-1.1.4B01/2022Amended Paragraph on the submission of the Board and Committee annual meetings report.
          BR-1.2.301/2022Deleted Sub-paragraph (h).
          BR-3.1.301/2022Amended Paragraph on the submission of the reporting forms.
          BR-3.1A.301/2022Amended Paragraph on the submission of the quarterly reports.
          BR-3.1A.5A01/2022Amended Paragraph on the submission of the Information Required for Annual and Interim Financial Review and the PIR forms for retail banks.
          BR-3.1A.5B01/2022Amended Paragraph on the submission of the Information Required for Annual and Interim Financial Review and the PIR forms for wholesale banks.
          BR-4.1.301/2022Amended Paragraph removing the submission of a printed copy of the Appendix BR-2.
          BR-4A.5.201/2022Amended Paragraph on the submission of the written assessment of the observations/issues raised in the Inspection draft report.
          BR-5.1.1101/2022Deleted Paragraph.
          BR-3.1.804/2022Amended Paragraph on reporting of complaints.
          BR-3.1A.604/2022Amended Paragraph on submission of complaint reports.
          BR-4A.204/2022Deleted Section.
          BR-5.1.1004/2022Deleted Paragraph.
          BR-5.3.404/2022Amended Paragraph on ATMs installation.
          BR-A.2.9(g)10/2022Deleted sub-paragraph.
          BR-5.1.1701/2023Amended Paragraph removing reference to OM.
          BR-1.1.4B04/2023Deleted Paragraph.
          BR-4A.704/2023Added a new Section on Prudential Meeting requirements.
          BR-A.2.9(d)10/2023Deleted sub-paragraph.
          BR-4A-3.101/2024Amended reference to HC Module.

        • Effective Date

          • BR-A.3.4

            The contents in this Module are effective from the date shown at the foot of the page or from the date of changes shown in BR-A.3.3.

            October 07

    • BR-1 BR-1 Regular Reporting – Annual Requirements

      • BR-1.1 BR-1.1 Bahraini Islamic Bank Licensees

        • BR-1.1.1

          [This Paragraph was deleted in April 2016.]

          Deleted: April 2016
          October 2010
          October 07

        • Annual Audited Financial Statements

          • BR-1.1.2

            All Bahraini Islamic Bank Licensees are required to submit to the CBB their annual audited financial statements within 3 months from the financial year end.

            Amended: April 2019
            Amended: April 2016
            October 2010
            January 2009
            April 2008
            October 07

          • BR-1.1.2A

            All Bahraini Islamic Bank Licensees are required to submit to the CBB their draft year-end financial statements and must attend a meeting at the CBB with their supervisory point of contact (SPOC) and their external auditor. The bank must obtain their audit committee's prior approval of the draft financial statements before submitting these to the CBB. Subsequent to the meeting with the CBB, the financial statements (subject to any adjustments) must be submitted to the Board for its approval and to the shareholders at the annual general meeting for ratification.

            Amended: April 2019
            Amended: April 2016

          • BR-1.1.3

            [This Paragraph was deleted in October 2010].

            October 2010
            January 2009
            October 07

        • Supplementary Information

          • BR-1.1.4

            In addition to the statements required in Paragraph BR-1.1.2, banks are also required to submit to the Central Bank the following information within 3 months of their financial year end:

            (a) The external auditor's management letter and Independent External Shari'a Compliance Auditor's (IESCA) communication to the board of directors and Shari'a supervisory board along with IESCA's assurance report;
            (b) The audited accounts for the bank's ultimate holding company;
            (c) Audited financial statements of all subsidiaries (whether or not consolidated) and all overseas branches (including their accounting policies where these policies differ from those of the parent bank), along with their management letters;
            (d) The bank's group structure and the Bahrain's office internal organisation chart;
            (e) [This sub-paragraph was deleted in April 2019];
            (f) A list of subsidiaries, associated companies and affiliates of the bank, together with details of their locations and the amount of participation by the bank in these entities;
            (g) A reconciliation statement between the audited financial statements and the relevant prudential returns and monthly statistical returns;
            (h) Any other supplementary information required by the CBB;
            (i) [This Subparagraph was deleted in April 2013 and replaced with Paragraph BR-1.1.4B];
            (j) [This Subparagraph was deleted in July 2017 and replaced with Paragraph BR-1.1.4C];
            (k) Report on controllers as required under Paragraph GR-5.1.9; and
            (l) The remuneration agreed upon procedures as required under Paragraph BR-4A.3.1.
            (m) Report on the number of hours completed during the previous year in Continuous Professional Development (CPD) via CPD Form in Appendix BR-22 by the approved persons specifically board of directors and management as required under Paragraph TC-1.2.1.
            (n) [This Sub-Paragraph was deleted in January 2022].
            Deleted: January 2022
            Amended: April 2019
            Amended: January 2019
            Amended: October 2018
            Amended: July 2017
            Amended: April 2017
            Amended: July 2016
            Amended: October 2014
            Amended: January 2014
            Amended: April 2013
            Amended: April 2012
            Amended: October 2011
            July 2011
            October 2010
            January 2009
            October 07

          • BR-1.1.4A

            In instances where a bank has non-operational subsidiaries, the bank should contact its supervisory point of contact to establish whether the requirements of Subparagraph BR-1.1.4(c) are applicable.

            Added: July 2016

          • BR 1.1.4B

            [This Paragraph was deleted in April 2023].

            Deleted: April 2023
            Amended: January 2022
            Amended: July 2017
            Amended: July 2016
            Added: April 2013

          • BR-1.1.4C

            Banks are required to submit to the Central Bank an agreed upon procedures report concerning the annual disclosures required by Module PD, Section PD-1.3 and Chapter PD-6 (see also AU-3.1.3) within 4 months of their financial year end;

            Added: July 2017

        • Compliance

          • BR-1.1.5

            In addition to the provisions of Section AU-3.4, the audited financial statements or the annual report of these banks should be in full compliance with the disclosure requirements set out under Sections PD-1.3 and PD-1.4 (as applicable).

            October 2010
            October 2009
            October 2007

        • Annual Report

          • BR-1.1.6

            Banks are reminded that they must submit a soft copy (electronic) of their full annual report to the CBB within 4 months of the end of their financial year (See PD-1.2.6).

            Amended: July 2016
            Amended: April 2012
            October 2010
            October 2009
            January 2009

      • BR-1.2 BR-1.2 Branches of Foreign Banks

        • BR-1.2.1

          The content of this Section is applicable to branches (licensed by the CBB) of foreign banks.

          October 2010
          October 07

        • Annual Audited Financial Statements

          • BR-1.2.2

            All branches, referred to under Paragraph BR-1.2.1, are required to submit to the CBB their annual audited financial statements of their Bahrain operations within 3 months from the financial year end.

            Amended: April 2016
            October 2010
            October 07

        • Supplementary Information

          • BR-1.2.3

            In addition to the statements required in Paragraph BR-1.2.2, branches are also required to submit to the CBB within 3 months from their financial year end the following information:

            (a) The external auditor's management letter;
            (b) [This sub-paragraph was deleted in April 2019];
            (c) A reconciliation statement between the audited financial statements and the relevant prudential returns and monthly statistical returns;
            (d) [This Subparagraph was replaced by Paragraph BR-1.2.3A in April 2012];
            (e) A statement of provisions as set out in Paragraph BR-1.2.4, below; and
            (f) The remuneration agreed upon procedures as required under Paragraph BR-4A.3.1.
            (g) Report on the number of hours completed during the previous year in Continuous Professional Development (CPD) via CPD Form in Appendix BR-22 by the approved persons as required under Paragraph TC-1.2.1.
            (h) [This Sub-paragraph was deleted in January 2022].
            Deleted: January 2022
            Amended: April 2019
            Amended: October 2018
            Amended: July 2018
            Amended: April 2017
            Amended: October 2014
            Amended: January 2014
            Amended: April 2012
            Amended: April 2011
            October 2010
            October 07

          • BR-1.2.3A

            Branches of foreign banks are also required to submit to the CBB the head office's Annual Report within 1 month of the date of publication and distribution by the head office.

            Added: April 2012

        • Provisions against Branch Assets in Head Office Books

          • BR-1.2.4

            If specific provisions against the assets of a branch are maintained in the books of its head office, the CBB should be advised on an annual basis and in writing (along with the information listed under Paragraph BR-1.2.3) of the amount of provisions set aside for the Bahrain branch's bad debts (and any other non-performing assets). For detailed guidance related to this subject, see Section CM-3.3.

            October 2010
            April 2008
            October 07

        • Compliance

          • BR-1.2.5

            The annual accounts must be in full compliance with the Financial Accounting Standards issued by AAOIFI or where AAOIFI standards do not cover a subject, International Financial Reporting Standards (IFRS) must be used.

            October 2010
            October 07

      • BR-1.3 BR-1.3 All Banks

        • BR-1.3.1

          Banks must provide to the CBB details of total remuneration including the mix of fixed and variable remuneration as per Appendix BR-14. The report must be submitted annually and must be provided within 3 months of the financial year end.

          Amended: July 2014
          Added: January 2014

      • BR-1.4 BR-1.4 All Retail Banks

        • BR-1.4.1

          All Islamic retail banks must submit to the CBB within two months of the financial year end, the eligible accounts report for the deposits protection scheme (Appendix BR-16) in accordance with the requirements of Paragraph CP-2.3.4B. Instructions for the completion of the report are included under Appendix BR-17.

          Added: April 2014

        • BR-1.4.2

          The report referred to under Paragraph BR-1.4.1 must be reviewed by the Islamic retail bank's external auditor to confirm the accuracy of the data prior to its submission to the CBB (see Section AU-3.8).

          Added: April 2014

    • BR-2 BR-2 Regular Reporting – Semi-annual (Interim) Requirements

      • BR-2.1 BR-2.1 Retail Branches of Foreign Banks

        • BR-2.1.1

          The content of this Section is applicable only to retail branches (licensed by the CBB) of foreign banks.

          October 2010
          October 07

        • Financial Information

          • BR-2.1.2

            Branches (referred to under Paragraph BR-2.1.1) are required to submit to the CBB their reviewed semi-annual (interim) financial statements (in the same format as their Annual Audited Accounts) for their Bahrain operations within 2 months of the date of these statements.

            Amended: April 2012
            October 2010
            October 07

          • BR-2.1.2A

            All retail branches of foreign banks must submit to the CBB at least 5 working days prior to the intended publication date, the following documents:

            (a) Draft interim financial statements; and
            (b) Completed Form: Information Required for Annual and Interim Financial Review (Appendix BR-21) prepared in accordance with Appendix BR-20.
            Added: July 2021

        • Compliance

          • BR-2.1.3

            The statements mentioned under Paragraph BR-2.1.2 must be in compliance with the requirements set out under Section PD-2.1.

            Amended: January 2015
            April 2008
            October 07

      • BR-2.2 BR-2.2 Bahraini Islamic Bank Licensees

        • BR-2.2.1

          The content of this Section is applicable to all Bahraini Islamic Bank Licensees licensed by the CBB in the Kingdom of Bahrain.

          Amended: April 2019
          Added: October 2011

        • Compliance with Module PD

          • BR-2.2.2

            The financial statements mentioned under Paragraph BR-3.1.6 should be in compliance with the requirements set out under Section PD-3.1.

            Added: October 2011

          • BR-2.2.3

            In addition to the financial statements required in Paragraph BR-3.1.6, banks are also required to submit to the CBB the following information within two months of the end of the half-year:

            (a) A copy of the disclosures required by Paragraph PD-3.1.6; and
            (b) An agreed-upon procedures report concerning the completeness of disclosures required by Paragraph PD-3.1.6 (see also AU-3.1.4).
            Added: October 2011

        • Report on Private Placements

          • BR-2.2.4

            When acting as an issuer, promoter or manager of a private placement of securities, Bahraini Islamic bank licensees must provide on a semi-annual basis to investors and the CBB a progress report on the private placement. The semi-annual reports are to be provided as of 30th June and 31st December and must be submitted to the investors and the CBB within three months of the reporting period.

            Amended: April 2015
            Added: April 2014

          • BR-2.2.5

            The reports referred to in Paragraph BR-2.2.4 are to be issued following the issuance or distribution of a PPM for the solicitation of funds from investors.

            Added: April 2014

          • BR-2.2.6

            The requirements for the report on private placements are in addition to any requirements outlined in Module OFS (Offering of Securities) under Volume 6 (Capital Markets).

            Added: April 2014

          • BR-2.2.7

            Bahraini Islamic bank licensees may opt to issue the required report on a more frequent basis.

            Added: April 2014

          • BR-2.2.8

            The report required under Paragraph BR-2.2.4 must be issued for private equity purchases of existing companies as well as for real estate and other projects under development and must follow the requirements of Appendix BR-18 under Part B of Volume 2.

            Added: April 2014

      • BR-2.3 BR-2.3 [This Section was deleted in April 2019]

        • BR-2.3.1

          [This Paragraph was deleted in April 2019].

          Deleted: April 2019
          Added: October 2014

        • [This sub-heading was deleted in April 2019]

          • BR-2.3.2

            [This Paragraph was deleted in April 2019].

            Deleted: April 2019
            Added: October 2014

    • BR-3 BR-3 Regular Reporting – Quarterly Requirements

      • BR-3.1 BR-3.1 Bahraini Islamic Bank Licensees

        • BR-3.1.1

          The content of this Section is applicable to all Bahraini Islamic Bank Licensees licensed by the CBB in the Kingdom of Bahrain.

          Amended: April 2019
          Amended: October 2010
          October 07

        • Prudential Information Returns for Islamic Banks (PIRI)

          • BR-3.1.2

            All banks, referred to under Paragraph BR-3.1.1, must complete PIRI forms (see Appendix BR-5), on a quarterly basis. This form is intended to be a financial report of the bank. Banks should therefore include on it all assets and liabilities of their head office and their branches in Bahrain and abroad and subsidiaries where applicable. Separate figures in respect of the head office or 'Bahrain operations' are not required.

            October 2010
            January 2009
            October 07

          • BR-3.1.3

            The forms referred to under Paragraph BR-3.1.2 must be submitted to the CBB on a quarterly basis within 30 calendar days of the end of the reporting date.

            Amended: January 2022
            Amended: October 2010
            Amended: January 2009
            Added: October 07

          • BR-3.1.4

            The CBB requires all banks to request their external auditor to conduct a review of the prudential returns on a quarterly basis (see also Sections CA-1.5 and AU-3.6 for fuller details). The results of such review (in the form of an Agreed Upon Procedures report as shown in Appendix BR-9) must be submitted to the CBB no later than 2 months from the end of the subject quarter.

            Amended: October 2016
            October 2010
            January 2009
            April 2008
            October 07

          • BR-3.1.5

            Banks which demonstrate to the satisfaction of the CBB that they have fulfilled all of the CBB's requirements with regard to Prudential Returns for at least two consecutive quarters may apply (in writing) to the Central Bank for an exemption from the review procedure set out in Paragraph BR-3.1.4 above. Such exemption may be withdrawn by the CBB at any time, should errors be detected.

            Amended: July 2012
            Amended: October 2011
            April 2008
            October 07

          • BR-3.1.5A

            For Bahraini Islamic bank licensees, all existing exemptions in respect of PIRI review as at 31st December 2014 will cease.

            Added: April 2015

        • Information required for Annual and Interim Financial Review

          • BR-3.1.5B

            [This Paragraph was deleted in July 2021].

            Deleted: July 2021
            Added: April 2019

        • Financial Information

          • BR-3.1.6

            All banks, referred to under Paragraph BR-3.1.1, should submit their reviewed (unaudited) quarterly financial statements to the CBB within 2 months from the statement date.

            October 2010
            October 07

          • BR-3.1.6A

            All Bahraini Islamic bank licensees must submit to the CBB at least 5 working days prior to the intended publication date and before their board of directors' meeting to discuss the interim financial statements, the following documents:

            (a) Draft interim financial statements; and
            (b) Completed Form: Information Required for Annual and Interim Financial Review (Appendix BR-21) prepared in accordance with Appendix BR-20.
            Amended: July 2021
            Amended: October 2014
            Added: July 2014

        • Compliance

          • BR-3.1.7

            The statements mentioned under Paragraph BR-3.1.6 should be in compliance with the requirements set out under Section PD-3.1.

            October 07

        • Largest Country Exposures

          • BR-3.1.7AA

            All Bahraini Islamic bank licensees must submit to the CBB details of their largest country exposures on a consolidated basis through Electronic Submission of Returns and Analysis of Data (ESRAD). This report must be submitted to the CBB within 20 calendar days of the end of the relevant quarter.

            Added: October 2017

        • Large Exposures

          • BR-3.1.7A

            All Bahraini Islamic bank licensees must submit to the CBB details of their large exposures in accordance with Appendix BR-19. This report must be submitted to the CBB within 20 calendar days of the end of the reporting date.

            Added: July 2014

        • Overseas Banking Subsidiaries and Branches

          • BR-3.1.7B

            All Bahraini Islamic bank licensees must submit to the CBB details of their overseas banking subsidiaries and branches in accordance with Appendix BR-7. This report must be submitted to the CBB within one month of the end of the relevant quarter.

            Amended: October 2014
            Added: July 2014

        • Non-Banking Subsidiaries

          • BR-3.1.7C

            All Bahraini Islamic bank licensees must submit to the CBB reviewed statement of financial position and income statement of their non-banking subsidiaries. If reviewed statements are unavailable, management accounts will be accepted by the CBB. These statements are to be submitted within one month of the end of the relevant quarter.

            Added: July 2014

        • Reporting of Complaints

          • BR-3.1.8

            In accordance with Paragraph BC-10.7.1, all banks must submit to the CBB Consumer Protection Unit, 20 days after the end of the quarter, a report on complaints.

            Amended: April 2022
            Added: October 2011

      • BR-3.1A BR-3.1A Branches of Foreign Banks

        • BR-3.1A.1

          The content of this Section is applicable to branches (licensed by the CBB) of foreign banks.

          October 2010

        • Prudential Information Returns

          • BR-3.1A.2

            All branches, referred to under Paragraph BR-3.1A.1, are required by the CBB to complete PIR forms (see Appendix BR-5).

            July 2011
            October 2010

          • BR-3.1A.3

            These should be submitted to the CBB no later than 30 calendar days from the end of the said quarter.

            Amended: January 2022
            Added: October 2010

          • BR-3.1A.4

            The CBB requires all banks to request their external auditor to conduct a review of the prudential returns on a quarterly basis. The results of such review (in the form of a return review report) should be submitted to the CBB no later than 2 months from the end of the subject quarter. A bank may apply for exemption from this requirement provided that it meets the criteria set out under Paragraph BR-3.1A.5 below.

            October 2010

          • BR-3.1A.5

            Banks which demonstrate to the satisfaction of the CBB that they have fulfilled all of the CBB's requirements with regard to Prudential Returns for at least two consecutive quarters may apply (in writing) to the CBB for an exemption from the review procedure set out in Paragraph BR-3.1A.4 above.

            October 2010

        • Additional Information required for CBB's Financial Review

          • BR-3.1A.5A

            All retail branches of foreign banks must submit the completed Form: Information Required for Annual and Interim Financial Review (Appendix BR-21) prepared in accordance with Appendix BR-20 together with the PIRI forms within 30 calendar days (See Paragraph BR-3.1.3) or together with any draft financial statement submissions (See Paragraph BR-2.1.2A).

            Amended: January 2022
            Amended: July 2021
            Added: April 2019

          • BR-3.1A.5B

            All wholesale branches of foreign banks must submit the completed Form: Information Required for Annual and Interim Financial Review (Appendix BR-21) prepared in accordance with Appendix BR-20, together with the PIRI forms within 30 calendar days of each quarter end (See Paragraph BR-3.1.3).

            Amended: January 2022
            Added: July 2021

        • Reporting of Complaints

          • BR-3.1A.6

            In accordance with Paragraph BC-10.7.1, all banks must submit to the CBB Consumer Protection Unit, 20 days after the end of the quarter, a report on complaints.

            Amended: April 2022
            Added: October 2011

      • BR-3.2 BR-3.2 [deleted]

        [This Section was deleted in July 2011].

        • BR-3.2.1 [deleted]

          Deleted: July 2011

        • [deleted]

          Deleted: July 2011

          • BR-3.2.2 [deleted]

            Deleted: July 2011

          • BR-3.2.3 [deleted]

            Deleted: July 2011

    • BR-4 BR-4 Regular Reporting – Monthly Requirements

      • BR-4.1 BR-4.1 All Licensed Banks

        • BR-4.1.1

          The content of this Section is applicable to all banks (or as stated otherwise) licensed by the CBB in the Kingdom of Bahrain.

          October 2010
          October 07

        • Statistical Returns

          • BR-4.1.2

            All banks, referred to under Paragraph BR-4.1.1, are required to submit to the CBB (Financial Stability Directorate) the following monthly statistical returns:

            (a) Form SR-1 – 'Monthly Balance Sheet';
            (b) Form SR-2 – 'Monthly Classification of Deposits and Other Liabilities to Banks and Non-banks';
            (c) Form SR-3 – 'Monthly Balance Sheet by Country and Class of Customer';
            (d) Form SR-4 – 'Monthly Balance Sheet by Currency';
            (e) Form SR-5 – 'Monthly Classification of Loans and Advances to Domestic Non-banks'; and
            (f) Form SR-7 – 'Monthly Classification of Assets'.

            (For instructions relating to the completion of the above mentioned returns, refer to Appendix BR-1 and for returns forms refer to Appendix BR-2).

            July 2011
            October 2010
            October 07

          • BR-4.1.3

            The returns included in Appendix BR-2 should be submitted to the CBB in electronic form (Excel spreadsheet) via email to erdsr@cbb.gov.bh no later than the 10th of the month following the end of the relevant month.

            Amended: January 2022
            Amended: October 2010
            Added: October 07

        • Precious Metals and Commodities Returns

          • BR-4.1.4

            [This Paragraph deleted with effect from 1 July 2006].

            October 2010
            October 07

        • Reserve Requirements

          • BR-4.1.4A

            The Banking Services Directorate will calculate the reserve requirement of each Islamic bank licensee bank on a monthly basis using the figures reported in the monthly statistical report, Form SR-2 (see Rule BR-4.1.2 above) and will notify each bank of its required reserve (if any).

            July 2011
            October 2007

          • BR-4.1.4B

            The monthly reserve requirements will be calculated as 5% of the total of an Islamic bank licensee's BD non-bank funds (whether call or unrestricted investment accounts – see LR-2.5.10).

            July 2011
            July 2009
            April 2008
            October 07

          • BR-4.1.4C

            Reserve requirements, because of their scope of coverage (cf. Rule BR-4.1.4B), generally only apply to retail banks. They may apply, however, to wholesale banks, if they undertake on-shore business (cf. Section LR-1.2).

            July 2011
            October 2007

        • Accounts for Charity Organisations

          • BR-4.1.5

            All banks, referred to under Paragraph BR-4.1.1, must report to the CBB all payments and transfers of funds amounting to BD 3,000 or above (or equivalent in other currencies) from accounts held by the bank for charitable organisations registered in the Kingdom of Bahrain (also see Paragraph FC-1.6.4). Such report must include details of amount transferred, account name and number, and beneficiary (name and location).

            Added: October 2011

      • BR-4.2 Full Commercial Banks [This Section deleted 07/2006]

      • BR-4.3 BR-4.3 Bahraini Islamic Bank Licensees

        • BR-4.3.1

          The content of this Section is only applicable to locally incorporated banks.

          October 07

        • Directors' Interests in the Shares of Locally Incorporated Banks Listed on the Bahrain Stock Exchange

          • BR-4.3.2

            All locally incorporated banks listed on a licensed exchange are required to report to the Capital Markets Supervision Directorate of the CBB the following information, on a monthly basis, relating to their Directors:

            (a) The number and type of interests of each Director in the shares (i.e. whether by shareholding, options etc.) of all such banks in which the respective Directors have interests in and the rights associated with such interests;
            (b) The date on which, and manner in which, such interests were acquired or disposed of (as the case may be);
            (c) The acquisition price paid, or disposal price received, for such interests; and
            (d) The person(s) from, or to, whom the interests in such shares were acquired or disposed (as the case may be).
            Amended: April 2011
            October 2010
            October 07

          • BR-4.3.3

            The information required in Paragraph BR-4.3.2 above should be submitted to the CBB no later than 15 calendar days following the end of the relevant month.

            Amended: April 2011
            October 2010
            October 2009
            October 2007

        • Exposures to Connected Counterparties

          • BR-4.3.4

            All banks, referred to under Paragraph BR-4.3.1, are required to submit to the CBB their exposures to connected parties on a monthly basis on the fourth working day of the month.

            (For instructions relating to the reporting of the above mentioned exposures, refer to Appendix BR-11 and for the concerned reporting forms refer to Appendix BR-10).

            October 2010
            October 2009

        • Liquidity Coverage Ratio

          • BR-4.3.5

            Bahraini Islamic bank licensees must submit their "solo" LCR to the CBB within 7 calendar days following the month end, and their consolidated LCR within 14 calendar days following the month end (see Appendix BR-23) through Electronic Submission of Returns and Analysis of Data (ESRAD).

            Added: July 2019

    • BR-4A BR-4A Other Reporting Requirements

      • BR-4A.1 BR-4A.1 IIS Reporting Requirements

        • Institutional Information System (IIS)

          • BR-4A.1.1

            All banks licensed by the CBB are required to complete online non-financial information related to their institution by accessing the CBB's institutional information system (IIS). Banks must update the required information at least on a quarterly basis or when a significant change occurs in the non-financial information included in the IIS. If no information has changed during the quarter, the bank must still access the IIS quarterly and confirm the information contained in the IIS. Licensees must ensure that they access the IIS within 20 calendar days from the end of the related quarter and either confirm or update the information contained in the IIS.

            Amended: January 2013
            Adopted: January 2011

          • BR-4A.1.2

            Banks failing to comply with the requirements of Paragraph BR-4A.1.1 or reporting inaccurate information are subject to financial penalties or other enforcement actions as outlined in Module (EN) Enforcement.

            Adopted: January 2011

      • BR-4A.2 BR-4A.2 [This Section was deleted in 04/2022]

        • BR-4A.2.1

          [This Paragraph was deleted in April 2022].

          Deleted: April 2022
          Amended: January 2015
          Amended: July 2014
          Added: July 2013

        • BR-4A.2.2

          [This Paragraph was deleted in April 2022].

          Deleted: April 2022
          Amended: July 2018
          Added: July 2013

      • BR-4A.3 BR-4A.3 Compliance with Remuneration Rules under Module HC

        • BR-4A.3.1

          Unless specifically excluded in accordance with Paragraph AU-3.7.3, every Islamic bank licensee must submit to the CBB within three months from the financial year-end, a report as to the bank's compliance with the remuneration Rules outlined in Chapter HC-6.

          Amended: January 2024
          Amended: July 2014
          Added: January 2014

        • BR-4A.3.1A

          Where a Islamic bank licensee is not required to provide a report under Paragraph BR-4A.3.1, it must submit a notification to the CBB once it has been determined that it is excluded to file such report as per Paragraph AU-3.7.3.

          Added: July 2014

        • BR-4A.3.2

          The report required under Paragraph BR-4A.3.1 must be prepared by the bank's external auditor or a consultancy firm approved by the CBB.

          Amended: July 2015
          Added: January 2014

        • BR-4A.3.2A

          For a consultancy firm to be approved by the CBB for purposes of this Section, the conventional bank licensee should communicate with the CBB's supervisory point of contact for seeking the CBB's prior written approval.

          Added: July 2015

        • BR-4A.3.3

          The format of the Report required under Paragraph BR-4A.3.1 is included in Part B of the Rulebook as Appendix HC-(i), as part of the Supplementary Information.

          Amended: July 2015
          Added: January 2014

      • BR-4A.4 BR-4A.4 Remuneration of Top 12 Employees

        • BR-4A.4.1

          Banks must complete Appendix BR-15, details of their top 12 highly remunerated employees annually for each financial year. This report is to be completed by the bank within three months from the end of the period covered and kept at the bank's premises and provided to the CBB, upon request.

          Amended: July 2017
          Added: January 2014

      • BR-4A.5 BR-4A.5 Onsite Inspection Reporting

        • BR-4A.5.1

          For the purpose of onsite inspection by the CBB, Islamic bank licensees must submit requested documents and completed questionnaires to the Inspection Directorate at the CBB three working days ahead of inspection team entry date.

          Added: April 2017

        • BR-4A.5.2

          Islamic bank licensees must review the contents of the draft Inspection Report and submit to the Inspection Directorate at the CBB a written assessment of the observations/issues raised within fifteen working days of receipt of such report. Evidentiary documents supporting management's comments must also be included in the response package.

          Amended: January 2022
          Added: April 2017

        • BR-4A.5.3

          Islamic bank licensees' board are required to review the contents of the Inspection Report and submit within one month, of the report issue date, a final response to such report along with an action plan addressing the issues raised within the stipulated timeline.

          Added: April 2017

        • BR-4A.5.4

          Banks failing to comply with the requirements of Paragraphs BR-4A.5.1 and BR-4A.5.2 are subject to date sensitive requirements and other enforcement actions as outlined in Module (EN) Enforcement.

          Added: April 2017

      • BR-4A.6 BR-4A.6 Reporting of API performance

        • BR-4A.6.1

          Islamic retail bank licensees must report to CBB statistics on the availability and performance of APIs on a monthly basis as per the requirements included in the Operational Guidelines in the Bahrain Open Banking Framework. The reports must be submitted within 5 working days of the month end.

          Added: July 2021

      • BR-4A.7 BR-4A.7 Prudential Meeting

        • BR-4A.7.1

          Islamic bank licensees must submit to the CBB at least three weeks prior to the prudential meeting date, all compliance and internal audit reports issued since the last prudential meeting along with status updates on resolved and pending issues.

          Added: April 2023

    • BR-5 BR-5 Ad-hoc Reporting and Notification

      • BR-5.1 BR-5.1 All Licensed Banks

        • BR-5.1.1

          The content of this Section is applicable to all banks, except as otherwise mentioned, (licensed by the CBB) in the Kingdom of Bahrain.

          Amended: April 2011
          October 2010
          October 07

        • Large Exposures

          • BR-5.1.2

            Should any locally incorporated bank find that, for reasons outside its control or otherwise, it has an exposure to an individual counterparty (other than an exempt exposure) which results in it exceeding any of the limits set out under Chapter CM-4, this should be reported immediately to the CBB for its consideration, and action should be taken immediately to bring the exposure back within applicable limits as soon as possible.

            Amended: April 2011
            October 2010
            October 2009
            October 2007

        • Capital Increases, Changes in Strategy and Establishment of Subsidiaries/SPVs

          • BR-5.1.3

            [This Paragraph was moved to Section BR-5.2].

            Amended: April 2014
            Amended: April 2013
            Amended: October 2010
            October 2007

        • Current Management and Changes thereto

          • BR-5.1.4

            [This Paragraph was deleted in April 2012].

            Deleted: April 2012

          • BR 5.1.5

            The CBB must be notified of any changes to the positions mentioned under Paragraph LR-1A.1.2 that may occur from time to time subject to observing the requirements set out in Section LR-1A.1. (See also Paragraph LR-1A.1.22)

            Amended: April 2014
            Amended: April 2012
            Amended: October 2010
            Amended: October 2009
            October 2007

          • BR-5.1.6

            For detailed rules and guidance on prior notification of appointment and changes in management inventory, refer to Chapters HC-1 and LR-1A.

            October 2010
            October 07

        • Changes in Dealing Staff

          • BR-5.1.7

            [This Paragraph was deleted in July 2018].

            Deleted: July 2018
            Amended: April 2014
            Amended: January 2014
            Amended: April 2011
            October 2010
            October 07

        • Appointment of a Compliance Manager/Officer

          • BR-5.1.8

            All banks must notify the CBB of the appointment of a compliance manager/officer (refer to Section LR-1A.1), and must submit the appointee's Curriculum Vitae to the CBB. The CBB's approval must be received by the bank before the appointment becomes final. The bank must outline how the compliance function fits into the bank's senior management reporting structure, and must give details of relevant reporting lines within the bank.

            Amended: April 2014
            October 2010
            October 07

        • Money Laundering and Suspicious Transactions

          • BR-5.1.9

            The Money Laundering Reporting Officer (or his/her duly authorised delegate) must send a report to the Compliance Directorate of the CBB where he/she knows or has suspicions that a transaction might involve money laundering or terrorist financing, either due to the customer's economic standing or because it meets one of the examples of suspicious transactions described in Appendix FC-3.

            October 07

        • Promotion of Financial Products and Services Offered in/from Bahrain by Mean of Incentives etc.

          • BR-5.1.10

            [This Paragraph was deleted in April 2022].

            Deleted: April 2022
            Amended: April 2011
            October 2010
            October 07

          • BR-5.1.11

            [This Paragraph was deleted in January 2022].

            Deleted: January 2022
            Amended: July 2012
            Amended: October 2010
            Added: October 07

        • UN SCR 1373 (2001)

          • BR-5.1.12

            The CBB requires all banks to notify it immediately of any act that might contravene the provisions of UN Security Council Resolution 1373 (2001). Banks should refer to Chapter FC-8 for full details of this requirement.

            October 2010
            October 07

        • Notification of Fraud or other Material Concerns

          • BR-5.1.13

            All banks must report immediately to the CBB any frauds, either attempted or realised, or any well-founded concerns about the integrity of individual Directors or members of management. This obligation to disclose extends to individual Board members and members of management: i.e. if a Director or member of management has reasonable grounds to believe that information that should have been reported to the CBB has not, then they have a duty to report the matter personally to the CBB. All such cases shall be treated in the strictest confidence by the CBB.

            October 2010
            October 07

          • BR-5.1.14

            All banks must report immediately to the CBB any material losses as soon as the bank becomes aware of them. This notification requirement is separate from notifications for loan write-offs (see BR 5.2.3) or frauds (see above), but refers to losses caused by external events (e.g. falls in stock markets) or internal control failures. In this context 'material' would mean: a loss which exceeds 5% of net earnings in a given quarter; or a loss which reduces the bank's capital adequacy by more than 1%; or a loss which reduces total assets by more than 1%.

            October 2010
            October 07

        • Accounts for Charity Organisations

          • BR-5.1.15

            [This requirement was moved in October 2011 to Paragraph BR-4.1.5 as it is a monthly requirement].

            October 2011
            October 2010
            October 07

        • Business Transfers

          • BR-5.1.16

            All banks must refer to Section GR-4.1 on business transfer requirements.

            Amended: April 2014
            Amended: July 2011
            Added: April 2010

        • Other Notifications

          • BR-5.1.17

            Banks must inform the CBB, in writing, of the following:

            (a) Any material problems or changes encountered with an outsourcing provider;
            (b) Any proposed ownership changes (whether in terms of structure or identity of controllers) prior to the change taking place and any change in controllers as a result of circumstances outside the bank's knowledge and/or control (ref GR-5.1.7); and
            (c) Any dismissal or suspension of any staff in internal audit, risk management, AML, compliance function or internal Shari'a review of the bank. The notification must include the reason for the dismissal or suspension of such individual.
            Amended: January 2023
            Amended: April 2014
            Added: July 2011

          • BR-5.1.17A

            Should the CBB have a cause for concern following its review of the notification referred to under Subparagraph BR-5.1.17(c), it may investigate the matter and should it establish the existence of any irregularity, misconduct or unfair decisions, it may take enforcement action on the bank, including an adverse action on the fit and proper status of the person(s) responsible.

            Added: April 2014

      • BR-5.2 BR-5.2 Bahraini Islamic Banks

        • BR-5.2.1

          The content of this Section is applicable to all Bahraini Islamic bank licensees licensed by the CBB in the Kingdom of Bahrain.

          Amended: April 2014
          October 2010
          October 07

        • Capital Adequacy

          • BR-5.2.2

            All banks, referred to under Paragraph BR-5.2.1, must give the CBB immediate written notification of any actual breach by such banks of the minimum capital adequacy ratio (CAR) in accordance with Section CA-1.2. Where such notification is given, the bank must also adhere to the additional notification and reporting requirements as set out under Section CA-1.2.

            Amended: January 2015
            October 2010
            April 2008
            October 07

        • Write-off of Credit Facility

          • BR-5.2.3

            All banks, referred to under Paragraph BR-5.2.1, must notify the CBB of any write-off of a credit facility in excess of BD 100,000 (Bahraini Dinars One Hundred Thousand), or its equivalent in foreign currency and must obtain the CBB's prior approval for write-offs concerning certain parties connected to the concerned bank. See Section CM-6.1 for further details.

            Amended: April 2014
            April 2008
            October 07

        • Use of Behavioural Adjustments to Data Provided under Section E of PIRI

          • BR-5.2.4

            Banks may in certain circumstances apply to the CBB to use behavioural adjustments (Estimates) to their contractual data provided under Section E of PIRI Forms (also see Section AU-3.5). Such application must be supported by data for a minimum period of two years and verified by the external auditor.

            October 2010
            October 07

        • Term Borrowing Commitments

          • BR-5.2.5

            All banks must consult with the CBB before they enter into any term borrowing facilities or programs which have any restrictive covenants in relation to the capital or activities of the bank (such as the capital adequacy ratio, capital amount, leveraging, compliance with certain regulatory requirements, etc). For the sake of expediting the CBB's reaction to such consultations, banks must submit the draft term sheet of the facility to the Banking Supervision director at the CBB responsible for the supervision of the concerned bank, before committing themselves to the concerned facility (or renewing it).

            Added: April 2012

        • Facilities Transferred to Qard Hassan

          • BR-5.2.6

            All banks, referred to under Paragraph BR-5.2.1, must obtain the CBB's prior approval of any transfer of any exposures to Qard Hassan in excess of BD100,000 or its equivalent in foreign currency (see Paragraph CM-8.1.19). The prior approval requirement applies to both on-balance sheet and restricted investment account related exposures.

            Added: April 2014

        • Capital Increases, Changes in Strategy and Establishment of Subsidiaries/SPVs

          • BR-5.2.7

            All Bahraini Islamic bank licensees must obtain the CBB's prior written approval for the opening of any new place of business either in the Kingdom of Bahrain or abroad (this would include the establishment or acquisition of a subsidiary, new branches or representative offices). Bahraini Islamic bank licensees should refer to Article 51 of the CBB Law 2006 for full details.

            Added: April 2014

          • BR-5.2.8

            All Bahraini Islamic bank licensees must obtain the CBB's prior written approval for any proposed capital increase in a subsidiary and for any major changes (regardless of type and/or effect) to the bank's strategy or corporate plan prior to implementation (See also Paragraph HC-1.2.6).

            Amended: July 2021
            Added: April 2014

          • BR-5.2.9

            All Bahraini Islamic bank licensees must obtain the CBB's prior specific written approval if they intend to act as originator, sponsor or manager of a special purpose vehicle ('SPV'), or if they intend to participate in the creation of an SPV, or if they intend to acquire a holding of 20% or more of the equity capital of an SPV. All Bahraini Islamic bank licensees must seek prior specific written CBB approval if they are appointed as nominee shareholders of SPVs or hold votes by proxy arrangement in SPVs on behalf of other investors.

            Amended: January 2015
            Added: April 2014

          • BR-5.2.10

            For purposes of Paragraph BR-5.2.9, in order to avoid any delays and/or disruption in implementation of a Bahraini Islamic bank licensee's plans in this context, the CBB should be approached as soon as possible, even at a very preliminary stage.

            Added: January 2015

          • BR-5.2.11

            The CBB requires any Bahraini Islamic bank licensee associated with an SPV to confirm the following points in any request for approval under Paragraph BR-5.2.9:

            (a) The purpose of the SPV;
            (b) The nature of the relationship between the Bahraini Islamic bank licensee and the SPV (i.e. originator, sponsor, manager, investor, controller etc.);
            (c) The proposed consolidation/accounting treatment of the SPV in relation to the Bahraini Islamic bank licensee both for the PIR and the audited financial statements' purposes as agreed with its external auditor;
            (d) The availability of financial and other information relevant to the SPV and access to its business premises and records;
            (e) The Bahraini Islamic bank licensee is not providing any guarantees, warranties or financial/liquidity support of any kind to the SPV or its Rab Al Mal, the Muwakil or investor in the SPV; and
            (f) A copy of the Bahraini Islamic bank licensee's Shari'a Supervisory Board approval of the initial investment or financing structure involving the use of the concerned SPV(s).
            Amended: January 2020
            Added: January 2015

          • BR-5.2.12

            In addition to the points noted in BR-5.2.11, Bahraini Islamic bank licensees which are involved with SPVs in any of the relationships described in Paragraph BR-5.2.9 must:

            (a) Not allow such SPVs to obtain any conventional financing to fund themselves or any transactions that they enter into;
            (b) Not allow the SPVs to give any type of financial guarantee, warranty or indemnity to the Rab Al Mal, the Muwakil or investors in the SPVs or any other counterparty either directly or on behalf of the bank; and
            (c) Ensure that there are no legal or other restrictions on the availability of financial and other information relevant to the SPV and access to its business premises and records.
            (d) Not provide any credit facilities to the SPVs and/or extend any financial/liquidity support and/or guarantees.
            Amended: July 2020
            Amended: April 2020
            Amended: January 2020
            Added: January 2015

          • BR-5.2.13

            For purposes of Paragraph BR-5.2.12, in case of new acquisition or investment after the date of issuance of these rules, when conventional borrowing exists, it should be replaced by Islamic financing as soon as possible and in no case later than 12 months from the date of investment. In case of existing investments before the date of issuance of these rules, where conventional borrowing exists, it should be replaced by Islamic financing as soon as possible and in no case later than 12 months from the date of issuance of these rules. Both cases are extendable subject to SSB approval.

            Added: January 2015

          • BR-5.2.14

            Bahraini Islamic bank licensees which are involved with SPVs in any of the relationships described in Paragraph BR-5.2.9 must not allow such SPVs to give any type of financial guarantee, warranty or indemnity to the Rab Al Maal, the Muwakil or investors in the SPV or any other counterparty, customer or stakeholder either directly or on behalf of the Bahraini Islamic bank licensee.

            Added: January 2015

          • BR-5.2.15

            The Shari'a Supervisory Board of the Bahraini Islamic bank licensee must monitor on an ongoing basis the Shari'a compliance of the SPVs and must oversee the conduct of the annual Shari'a compliance review of transactions, assets, liabilities and other commitments and relationships entered into by all SPVs with which the Bahraini Islamic bank licensee is involved (by way of the relationships described in Paragraph BR-5.2.9). The Shari'a compliance function of the Bahraini Islamic bank licensee must perform such reviews.

            Added: January 2015

          • BR-5.2.16

            Bahraini Islamic bank licensees which are involved with SPVs in any of the relationships described in Paragraph BR-5.2.9 must not transfer non-performing or impaired assets from their own balance sheets to such SPVs or vice versa.

            Added: January 2015

          • BR-5.2.17

            Where the SPV is consolidated into the accounts of a locally incorporated bank, the bank must provide separate accounting information on the SPV to the CBB on a quarterly basis. Furthermore, the annual audited financial statements of all consolidated SPVs must be submitted to the CBB within 3 months of the year end of the concerned SPV.

            Added: January 2015

          • BR-5.2.18

            Where a locally incorporated bank has a controller or majority ownership relationship with an SPV, or acts as sponsor, the bank must obtain the prior written approval of the CBB for any changes to the capital, ownership, management or control of the SPV. All Bahraini Islamic Bank Licensees must also notify the CBB of any material events in relation to the SPV. If necessary, the CBB may require that formal information exchange arrangements are put in place (e.g. a memorandum of understanding) if the SPV is located in a foreign jurisdiction and its activities are not supervised locally.

            Amended: April 2019
            Added: January 2015

      • BR-5.3 BR-5.3 Retail Banks

        • BR-5.3.1

          The content of this Section is only applicable to retail banks licensed by the CBB in the Kingdom of Bahrain.

          October 2010
          October 07

        • Introduction of New or Expanded Customer Products and Facilities

          • BR-5.3.2

            All banks, referred to under Paragraph BR-5.3.1, should notify the CBB of information relating to any new or expanded customer products and facilities in accordance with the requirements set out under Section BC-4.6.

            October 2010
            October 07

          • BR-5.3.3

            [This Paragraph deleted July 2006.]

            October 07

        • Installation or Removal of ATM in Bahrain

          • BR-5.3.4

            In accordance with Section BC-6.1, all banks referred to under Paragraph BR-5.3.1, must notify the CBB in writing if they installed or removed an ATM in Bahrain.

            Amended: April 2022
            Added: April 2012

        • Funds Received from NGO where no Valid Funds Collection License

          • BR-5.3.5

            In accordance with Paragraph BC-4.11.3, retail banks must notify the CBB in instances where donated funds have been received by an NGO and no valid funds collection license was submitted.

            Added: April 2014

    • BR-6 BR-6 Information Gathering by the CBB

      • BR-6.1 BR-6.1 Power to Request Information

        • BR-6.1.1

          In accordance with Article 111 of the CBB Law, banks must provide all information that the CBB may reasonably request in order to discharge its regulatory obligations.

          Added: January 2012

        • BR-6.1.2

          Banks must provide all relevant information and assistance to the CBB inspectors and appointed experts on demand as required by Articles 111 and 114 of the CBB Law. Failure by banks to cooperate fully with the CBB's inspectors or appointed experts, or to respond to their examination reports within the time limits specified, will be treated as demonstrating a material lack of cooperation with the CBB which will result in other enforcement measures being considered, as described elsewhere in Module EN. This rule is supported by Article 114(a) of the CBB Law.

          Added: January 2012

        • BR-6.1.3

          Article 163 of the CBB Law provides for criminal sanctions where false or misleading statements are made to the CBB or any person /appointed expert appointed by the CBB to conduct an inspection or investigation on the business of the licensee or the listed licensee.

          Added: January 2012

        • Information Requested on Behalf of other Supervisors

          • BR-6.1.4

            The CBB may ask banks to provide it with information at the request of or on behalf of other supervisors to enable them to discharge their functions properly. Those supervisors may include overseas supervisors or government agencies in Bahrain. The CBB may also, without notifying a bank, pass on to those supervisors or agencies information that it already has in its possession.

            Added: January 2012

      • BR-6.2 BR-6.2 Access to Premises

        • BR-6.2.1

          In accordance with Article 114 of the CBB Law, all licensed banks must permit representatives of the CBB, or appointed experts, access, with or without notice, to any of its business premises in relation to the discharge of the CBB's functions under the relevant law.

          Amended: October 2011
          October 07

        • BR-6.2.2

          A bank must take reasonable steps to ensure that its agents and providers under outsourcing arrangements permit such access to their business premises, to the CBB.

          Added: October 2011

        • BR-6.2.3

          A bank must take reasonable steps to ensure that each of its providers under material outsourcing arrangements deals in an open and cooperative way with the CBB in the discharge of its functions in relation to the bank.

          Added: October 2011

        • BR-6.2.4

          The cooperation that banks are expected to procure from such providers is similar to that expected of banks themselves.

          Added: October 2011

      • BR-6.3 BR-6.3 Accuracy of Information

        • BR-6.3.1

          Banks must take reasonable steps to ensure that all information they give the CBB is:

          (a) Factually accurate or, in the case of estimates and judgements, fairly and properly based after appropriate enquiries have been made by the bank; and
          (b) Complete, in that it should include anything of which the CBB would reasonably expect notice.
          Added: October 2011

        • BR-6.3.2

          If a bank becomes aware, or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way, it must notify the CBB immediately. The notification must include:

          (a) Details of the information which is or may be false, misleading, incomplete or inaccurate, or has or may have changed;
          (b) An explanation why such information was or may have been provided; and
          (c) The correct information.
          Added: October 2011

        • BR-6.3.3

          If the information in Paragraph BR-6.3.2 cannot be submitted with the notification (because it is not immediately available), it must instead be submitted as soon as possible afterwards.

          Added: October 2011

      • BR-6.4 BR-6.4 Methods of Information Gathering

        • BR-6.4.1

          The CBB uses various methods of information gathering on its own initiative which require the cooperation of banks:

          (a) Representatives of the CBB may make onsite visits at the premises of the bank. These visits may be made on a regular basis, on a sample basis, for special purposes such as theme visits (looking at a particular issue across a range of banks), or when the CBB has a particular reason for visiting a bank;
          (b) Appointees of the CBB may also make onsite visits at the premises of the bank. Appointees of the CBB may include persons who are not CBB staff, but who have been appointed to undertake particular monitoring activities for the CBB, such as in the case of appointed experts (refer to Section BR-6.5).
          (c) The CBB may request the bank to attend meetings at the CBB's premises or elsewhere;
          (d) The CBB may seek information or request documents by telephone, at meetings or in writing, including electronic communication;
          (e) The CBB may require banks to submit various documents or notifications, as per Chapter BR-5, in the ordinary course of their business such as financial reports or on the happening of a particular event in relation to the bank such as a change in control.
          Added: January 2012

        • BR-6.4.2

          When seeking meetings with a bank or access to the bank's premises, the CBB or the CBB appointee needs to have access to a bank's documents and personnel. Such requests will be made during reasonable business hours and with proper notice. There may be instances where the CBB may seek access to the bank's premises without prior notice. While such visits are not customary, the prospect of unannounced visits is intended to encourage banks to comply at all times with the requirements and standards imposed by the CBB as per legislation and Volume 1 of the CBB Rulebook.

          Added: January 2012

        • BR-6.4.3

          The CBB considers that a bank should:

          (a) Make itself readily available for meetings with representatives or appointees of the CBB;
          (b) Give representatives or appointees of the CBB reasonable access to any records, files, tapes or computer systems, which are within the bank's possession or control, and provide any facilities which the representatives or appointees may reasonably request;
          (c) Produce to representatives or appointees of the CBB specified documents, files, tapes, computer data or other material in the bank's possession or control as reasonably requested;
          (d) Print information in the bank's possession or control which is held on computer or otherwise convert it into a readily legible document or any other record which the CBB may reasonably request;
          (e) Permit representatives or appointees of the CBB to copy documents of other material on the premises of the bank at the bank's expense and to remove copies and hold them elsewhere, or provide any copies, as may be reasonably requested; and
          (f) Answer truthfully, fully and promptly all questions which representatives or appointees of the CBB reasonably put to it.
          Amended: July 2012
          Added: January 2012

        • BR-6.4.4

          The CBB considers that a bank should take reasonable steps to ensure that the following persons act in the manner set out in Paragraph BR-6.4.3:

          (a) Its employees; and
          (b) Any other members of its group and their employees.
          Amended: July 2012
          Added: January 2012

        • BR-6.4.5

          In gathering information to fulfill its supervisory duties, the CBB acts in a professional manner and with due regard to maintaining confidential information obtained during the course of its information gathering activities.

          Added: January 2012

      • BR-6.5 BR-6.5 Role of the Appointed Expert

        • Introduction

          • BR-6.5.1

            The content of this Chapter is applicable to all banks and appointed experts.

            Added: October 2011

          • BR-6.5.2

            The purpose of the contents of this Chapter is to set out the roles and responsibilities of appointed experts when appointed pursuant to Article 114 or 121 of the CBB Law (see EN-7.1.1). These Articles empower the CBB to assign some of its officials or others to inspect or conduct investigations of banks.

            Added: October 2011

          • BR-6.5.3

            The CBB uses its own inspectors to undertake on-site examinations of licensees as an integral part of its regular supervisory efforts. In addition, the CBB may commission reports on matters relating to the business of licensees in order to help it assess their compliance with CBB requirements. Inspections may be carried out either by the CBB's own officials, by duly qualified appointed experts appointed for the purpose by the CBB, or a combination of the two.

            Added: October 2011

          • BR-6.5.4

            The CBB will not, as a matter of general policy, publicise the appointment of an appointed expert, although it reserves the right to do so where this would help achieve its supervisory objectives.

            Added: October 2011

          • BR-6.5.5

            Unless the CBB otherwise permits, appointed experts should not be the same firm appointed as external auditor of the bank.

            Added: October 2011

          • BR-6.5.6

            Appointed experts will be appointed in writing, through an appointment letter, by the CBB. In each case, the CBB will decide on the range, scope and frequency of work to be carried out by appointed experts.

            Added: October 2011

          • BR-6.5.7

            All proposals to appoint appointed experts require approval by an Executive Director or more senior official of the CBB. The appointment will be made in writing, and made directly with the appointed experts concerned. A separate letter is sent to the licensee, notifying them of the appointment. At the CBB's discretion, a trilateral meeting may be held at any point, involving the CBB and representatives of the licensee and the appointed experts, to discuss any aspect of the investigation.

            Added: October 2011

          • BR-6.5.8

            Following the completion of the investigation, the CBB will normally provide feedback on the findings of the investigation to the bank.

            Added: October 2011

          • BR-6.5.9

            Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to the bank's group structure). The report produced by the appointed experts is the property of the CBB (but is usually shared by the CBB with the firm concerned).

            Added: October 2011

          • BR-6.5.10

            Compliance by appointed experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a bank (i.e. create a conflict of interest).

            Added: October 2011

          • BR-6.5.11

            The CBB may appoint one or more of its officials to work on the appointed experts' team for a bank.

            Added: October 2011

        • The Required Report

          • BR-6.5.12

            The scope of the required report will be determined and detailed by the CBB in the appointment letter. Commissioned appointed experts would normally be required to report on one or more of the following aspects of a bank's business:

            (a) Accounting and other records;
            (b) Internal control systems;
            (c) Returns of information provided to the CBB;
            (d) Operations of certain departments; and/or
            (e) Other matters specified by the CBB.
            Added: October 2011

          • BR-6.5.13

            Appointed experts will be required to form an opinion on whether, during the period examined, the bank is in compliance with the relevant provisions of the CBB Law and the CBB's relevant requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.

            Added: October 2011

          • BR-6.5.14

            The appointed experts' report should follow the format set out in Appendix BR-12, in part B of the CBB Rulebook.

            Added: October 2011

          • BR-6.5.15

            Unless otherwise directed by the CBB or unless the circumstances described in Section BR-6.5.19 apply, the report must be discussed with the Board of directors and/or senior management in advance of its being sent to the CBB.

            Added: October 2011

          • BR-6.5.16

            Where the report is qualified by exception, the report must clearly set out the risks which the bank runs by not correcting the weakness, with an indication of the severity of the weakness should it not be corrected. Appointed experts will be expected to report on the type, nature and extent of any weaknesses found during their work, as well as the implications of a failure to address and resolve such weaknesses.

            Added: October 2011

          • BR-6.5.17

            If the appointed experts conclude, after discussing the matter with the bank, that they will give a negative opinion (as opposed to one qualified by exception) or that the issue of the report will be delayed, they must immediately inform the CBB in writing giving an explanation in this regard.

            Added: October 2011

          • BR-6.5.18

            The report must be completed, dated and submitted, together with any comments by directors or management (including any proposed timeframe within which the bank has committed to resolving any issues highlighted by the report), to the CBB within the timeframe applicable.

            Added: October 2011

        • Other Notifications to the CBB

          • BR-6.5.19

            Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, including the criteria for licensing a bank (see Module LR), are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concerned bank, or that the interests of customers are at risk because of adverse changes in the financial position or in the management or other resources of a bank. Notwithstanding the above, it is primarily the bank's responsibility to report such matters to the CBB.

            Added: October 2011

          • BR-6.5.20

            The CBB recognises that appointed experts cannot be expected to be aware of all circumstances which, had they known of them, would have led them to make a communication to the CBB as outlined above. It is only when appointed experts, in carrying out their duties, become aware of such a circumstance that they should make detailed inquiries with the above specific duty in mind.

            Added: October 2011

          • BR-6.5.21

            If appointed experts decide to communicate directly with the CBB in the circumstances set out in Paragraph BR-6.5.19, they may wish to consider whether the matter should be reported at an appropriate senior level in the bank at the same time and whether an appropriate senior representative of the bank should be invited to attend the meeting with the CBB.

            Amended: January 2012
            Added: October 2011

        • Permitted Disclosure by the CBB

          • BR-6.5.22

            Information which is confidential and has been obtained under, or for the purposes of, this chapter or the CBB Law may only be disclosed by the CBB in the circumstances permitted under the Law. This will allow the CBB to disclose information to appointed experts to fulfil their duties. It should be noted, however, that appointed experts must keep this information confidential and not divulge it to a third party except with the CBB's permission and/or unless required by Bahrain Law.

            Added: October 2011

        • Trilateral Meeting

          • BR-6.5.23

            The CBB may, at its discretion, call for a trilateral meeting(s) to be held between the CBB and representatives of the relevant bank and the appointed experts. This meeting will provide an opportunity to discuss the appointed experts' examination of, and report on, the bank.

            Added: October 2011