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  • 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