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  • LR-2.8 LR-2.8 Condition 8: Other Requirements

    • Books and Records

      • LR-2.8.1

        Article 59 of the CBB Law requires that Islamic bank licensees must maintain comprehensive books of accounts and other records, and satisfy the minimum record-keeping requirements contained in Article 60 of the pre-mentioned Law and in Module OM. Books of accounts must comply with the Financial Accounting Standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI), or with International Financial Reporting Standards (IFRS) / International Accounting Standards (IAS), where no relevant AAOIFI standard exists.

        Amended: July 2012
        Amended: July 2011
        Amended: October 2009
        October 2007

    • Provision of Information

      • LR-2.8.2

        Articles 58, 111, 114 and 163 of the CBB Law require that Islamic bank licensees and their staff must act in an open and cooperative manner with the CBB. Islamic bank licensees must meet the regulatory reporting and public disclosure requirements contained in Modules BR and PD respectively. As per Article 62 of the CBB Law, annual audited financial statements must be submitted to the CBB within 3 months of the licensee's financial year-end.

        Amended: July 2012
        October 2007

    • General Conduct

      • LR-2.8.3

        Islamic bank licensees must conduct their activities in a professional and orderly manner, in keeping with good market practice. Islamic bank licensees must comply with the general standards of business conduct contained in Module PB, as well as the standards relating to treatment of customers contained in Modules BC and CM.

        October 2007

      • LR-2.8.4

        [This paragraph has been moved to chapter LR-4 in October 2007]

      • LR-2.8.5

        [This paragraph has been deleted in October 2007]

    • Additional Conditions

      • LR-2.8.6

        Islamic bank licensees must comply with any other specific requirements or restrictions imposed by the CBB on the scope of their license.

        October 2007

      • LR-2.8.7

        Bank licensees are subject to the provisions of the CBB Law. These include the right of the CBB to impose such terms and conditions, as it may deem necessary when issuing a license, as specified in Article 45 of the pre-mentioned Law. Thus, when granting a license, the CBB specifies the regulated banking services that the licensee may undertake. Licensees must respect the scope of their license. LR-3.2 sets out the process for varying the scope of an authorisation, should a licensee wish to undertake new activities.

        October 2007

      • LR-2.8.8

        In addition, the CBB may impose additional restrictions or requirements, beyond those already specified in Volume 2, to address specific risks. For instance, a license may be granted subject to strict limitations on intra-group transactions.

        October 2007

      • LR-2.8.9

        Islamic retail bank licensees are subject to the deposit protection scheme of eligible deposits held with the Bahrain offices of the licensee, with respect to certain of their liabilities (see Chapter CP-2). This Rule is supported by Article 177 of the CBB Law.

        Amended October 2010
        October 2007