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  • LR-A.2 LR-A.2 Module History

    • Evolution of Module

      • LR-A.2.1

        This Module (Module LR — "Licensing and Authorisation Requirements") was first issued in January 2005, as part of the initial release of Volume 2 of the CBB Rulebook. It was subsequently reissued in full in July 2006 (and renamed "Licensing Requirements").

        October 2007

      • LR-A.2.2

        The reissued Module was one of several Modules modified to reflect the introduction of the CBB's new integrated license framework. Module LR was amended to reflect the new Islamic bank licenses introduced by the framework, and to more closely align its presentation with that found in other CBB Rulebook volumes.

        October 2007

      • LR-A.2.3

        The reissued Module is dated July 2006. All subsequent changes were dated with the month and year when the change was made, at the base of the relevant page and in the Table of Contents. Chapter 3 of Module UG provides further details on Rulebook maintenance and control.

        October 2007

      • LR-A.2.3.A

        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 2007

      • LR-A.2.4

        A list of recent changes made to this Module is provided below:

        Module Reference Change Date Description of Changes
        Whole Module 07/2006 Whole Module reissued to reflect integrated license framework: new license categories and updated licensing conditions introduced.
        LR-A.1.2 10/2007 New Rule LR-A.1.2 introduced, categorising this Module as a Directive.
        LR-2.8 10/2007 Changes to provision of information requirements as result of CBB Law
        LR-3 10/2007 Revised requirements due to new CBB Law
        LR-4 10/2007 New Chapter LR-4 on application and license fees (incorporating material on fees, previously contained in Module GR).
        LR-2.5.10 04/2008 New 7% reserve reqt.
        LR-1.2.16 04/2008 Lower threshold of $100,000 for investment business transactions for wholesale banks
        LR-2.5.10 07/2009 Minimum daily cash reserve balance with the CBB brought back to 5% from 7%.
        LR 10/2010 Various minor amendments to ensure consistency in formatting of CBB Rulebook.
        LR-A.1.2 10/2010 Revised legal basis.
        LR-1A 10/2010 New Chapter on Approved Persons moved from Section HC-1.2 and from Paragraphs in Section HC-1.5.
        LR-3.1.12A 10/2010 Added new paragraph, requiring capital to be injected prior to license being issued.
        LR-3.1.15 10/2010 Additional details pertaining to information required, within 6 months of a license being issued.
        LR-3.1.15A 10/2010 Transition rule added to comply with new requirement under Subparagraph HC-3.1.15(j).
        LR-4.2.13 10/2010 Amendment to guidance.
        LR 01/2011 Various minor amendments to ensure consistency in formatting of CBB Rulebook.
        LR-A.1.2 01/2011 Clarified legal basis.
        LR-3.1.5 and 3.1.5A 01/2011 Clarified the use of letters of guarantee as part of the licensing process.
        LR-4.2.9A 01/2011 Added the requirement for annual fees for SPV's to be in line with the requirements of Resolution No (1) of 2007.
        LR-3.1.3 04/2011 Clarified the appointment of a representative as part of the licensing process.
        LR-3.1.5(l) 04/2011 Deleted reference to Phase 1.
        LR-4.2.9A 04/2011 Clarified the payment of annual license fees for SPVs.
        LR-2.8.1 07/2011 Corrected due date of audited financial statements to be in line with Article 62 of the CBB Law and Module BR requirements.
        LR-A.1.2 10/2011 New reference added to reflect the issuance of Resolution No.(43) of 2011.
        LR-3.3 10/2011 Clarified language on cancellation of a license or closure of a branch to be in line with other Volumes of the CBB Rulebook.
        LR-1A.1.23 04/2012 Last sentence of Paragraph deleted as cross reference no longer applies.
        LR-A.1.2 07/2012 Added reference to Regulation No 1 of 2007 pertaining to regulated services.
        LR-A.1.1, LR-A.1.4, LR-A.1.7, LR-B.1.1, LR-1.1.3, LR-1.2.2, LR-1.2.15, LR-1.2.16, LR-1.3.17A, LR1A.1.18, LR-3.3.6 07/2012 Minor corrections.
        LR-A.1.12 and LR-A.1.13 07/2012 Amended Paragraphs to reflect updates for Volume 5.
        LR-B.1.3 07/2012 Corrected cross-reference.
        LR-1.2.10 07/2012 Reference to other banks deleted.
        LR-1A.1.20 07/2012 Changed Guidance to Rule.
        LR-1A.2.4 07/2012 Added cross-reference.
        LR-1A.3.3 07/2012 Corrected cross-reference.
        LR-2.8.1 and LR-2.8.2 07/2012 Attributed reference to CBB Law to correct Paragraph.
        LR-3.1.18 07/2012 Corrected cross-reference.
        LR-4.2.5 07/2012 Corrected last sentence of Guidance.
        LR-4.2.9B 07/2012 Added guidance regarding annual fees of SPVs of Bahrain domiciled CIUs.
        LR-A.1.2 01/2013 Updated legal basis.
        LR-B.1.1 01/2013 Updated prohibition as per issuance of Resolution No.(16) for the year 2012.
        LR-1.1 01/2013 References added to requirements under Resolution No.(16) for the year 2012.
        LR-1.3.17C, LR-1.3.17D, LR-1.3.33, LR-1.3.34, LR-1.3.35 and LR-1.3.36 01/2013 Various amendments to reflect the changes in RIAs as a result of issuing Volume 7 on collective investment undertaking ("CIU").
        LR-1A.1.3 01/2013 Clarified approval requirements for controlled functions for Bahrain operations.
        LR-4.2 07/2013 Amended due date and collection process for annual license fee.
        LR-1A.1 10/2013 Aligned controlled functions with Module TC.
        LR-4.2.9A 10/2013 Clarified annual license fees for newly established SPVs.
        LR-1.2.20 01/2014 Updated to refer to licensed exchange.
        LR-1A.1.3 01/2014 Correction made to clarify which controlled functions are in relation to Bahrain operations.
        LR-1A.1.17 01/2014 Amended requirement for notification for appointment of financial instrument trader and moved requirement to Paragraph BR-5.1.7.
        LR-1A.1 04/2014 Amended Rule on notification requirements dealing with approved persons.
        LR-A.1.2 01/2016 Legal basis updated to reflect Resolution No (23) of 2015.
        LR-1A.1 01/2016 Amended to reflect the issuance of Resolution No. (23) of the year 2015 dealing with approved persons.
        LR-1A.1.20B 04/2016 Clarified approval process for applicants for approved persons.
        LR-1A.1.18C 07/2016 Clarified Guidance on authorised representative for approval of controlled functions.
        LR-3.1.11 10/2016 Added definition of Certification.
        LR-2.5.2 04/2017 Deleted Paragraph on minimum paid up capital requirement.
        LR-2.5.2A 04/2017 Added new paragraph on minimum capital requirement for locally incorporated retail banks.
        LR-2.5.2B 04/2017 Added new paragraph on minimum capital requirement for locally incorporated wholesale banks.
        LR-2.5.6 04/2017 Amended Paragraph to delete the requirement of endowment capital for overseas wholesale banks.
        LR-1A.1.7 07/2017 Amended paragraph.
        LR-2.2.2 07/2017 Amended paragraph.
        LR-3.4 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License.
        LR 07/2017 Changed the term "Overseas" to "foreign branches".
        LR-1A.1.18 04/2018 Amended Paragraph.
        LR-3.1.1 04/2018 Amended Paragraph.
        LR-1.2.20A 10/2018 Added new Paragraph on Providing Trust Services.
        LR-1.2.23 10/2018 Amended Paragraph.
        LR-1.3.1 10/2018 Amended Paragraph adding — Providing Trust Services.
        LR-1.3.51 — LR-1.3.54 10/2018 Added new Sub-section on providing Trust Services.
        LR-1A.1.2 10/2018 Amended a controlled function title and added a new controlled function.
        LR-1A.1.9A 10/2018 Amended Paragraph on Shari'a Officer responsibilities.
        LR-1A.1.14A 10/2018 Added new Paragraph on the responsibilities of the Head of Internal Shari'a Audit function.
        LR-2.5.2A 10/2018 Amended Paragraph on minimum total shareholders' equity maintained by retail bank licensees.
        LR-2.5.2B 10/2018 Amended Paragraph on minimum total shareholders' equity maintained by wholesale bank licensees.
        LR-1.3.46A 04/2019 Added a new Paragraph on robo advice.
        LR-3.1.1 07/2019 Amended Paragraph to remove references to hardcopy Form 1 submission to online submission.
        LR-3.2.4 10/2019 Changed from Rule to Guidance.
        LR-3.4.1 10/2019 Changed from Rule to Guidance.
        LR-1.3.1A 10/2020 Added a new Paragraph on compliance with AAOIFI Shari’a Standards.
        LR-1.3.1 07/2021 Amended Paragraph.
        LR-1.3.1B 07/2021 Added a new Paragraph on obtaining approval for services not included in its application.
        LR-1.3.58 – LR-1.3.61 07/2021 Added new Paragraphs on Account Information Service and Payment Initiation Services.
        LR-1.3.1C 01/2022 Added a new Paragraph on submission of information in relation to a bank wishing to undertake regulated banking services which were not included in its application for license.
        LR-2.5.8 10/2022 Amended Paragraph removing the requirement for agreeing a liquidity management policy with the CBB.

      • LR-A.2.5

        [This paragraph was deleted in October 2007]