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  • [B] [B]

    • Bahrain domiciled CIU(s)

      [This definition has been moved to Volume 7 in April 2012].

    • Bahrain domiciled exempt CIU(s)

      [This definition has been moved to Volume 7 in April 2012].

    • Bahrain domiciled expert CIU(s)

      [This definition has been moved to Volume 7 in April 2012].

    • Bahrain domiciled retail CIU(s)

      [This definition has been moved to Volume 7 in April 2012].

    • Bai Bithaman Ajil contracts

      Refers to the sale of goods on a deferred payment basis. Goods or equipment requested by the purchaser are paid for by the financial institution which subsequently sells the goods back to the purchaser at an agreed price which includes the financial institution's fee.

      Added: January 2014

    • Beneficial owner

      (a) In the context of legal persons, beneficial owner refers to the natural person(s) who ultimately owns or controls a customer, and/or the natural person on whose behalf a transaction is being conducted. It also includes those natural persons who exercise ultimate effective control over a legal person. Only a natural person can be an ultimate beneficial owner, and more than one natural person can be the ultimate beneficial owner of a given legal person.
      (b) In the context of legal arrangements, beneficial owner includes: (i) the settlor(s); (ii) the trustee(s); (iii) the protector(s) (if any); (iv) each beneficiary, or where applicable, the class of beneficiaries and objects of a power; and (v) any other natural person(s) exercising ultimate effective control over the arrangement. In the case of a legal arrangement similar to an express trust, beneficial owner refers to the natural person(s) holding an equivalent position to those referred above. When the trustee and any other party to the legal arrangement is a legal person, the beneficial owner of that legal person should be identified.
      (c) Reference to “ultimately owns or controls” and “ultimate effective control” refer to situations in which ownership/control is exercised through a chain of ownership or by means of control other than direct control.
      (d) Reference to “ultimate effective control” over trusts or similar legal arrangements includes situations in which ownership/control is exercised through a chain of ownership/control.
      Amended: October 2017
      Added: July 2011
      Amended: June 2025

    • Beneficiary

      (As used in Module AML): refers to the natural or legal person or legal arrangement who is identified by the originator as the receiver of the requested wire transfer.

      Added: January 2020

    • Beneficiary financial institution

      Refers to the financial institution which receives the wire transfer from the ordering financial institution directly or through an intermediary financial institution and makes the funds available to the beneficiary.

      Added: January 2020

    • Best-efforts underwriting

      Where the underwriter acts as an agent to the issuer and agrees to do its best to sell the issue to the investors, but does not guarantee subscription and does not buy the securities in case of under-subscription.

      Added: January 2014

    • Book building

      Book building means a process whereby demand for the securities proposed to be issued by an issuer are elicited and built-up, in order to assess the price for such securities.

      Added: January 2014

    • Bonds

      An instrument creating or acknowledging a present or future indebtedness (i.e. debentures, debenture stock, loan stock, bonds, certificates of deposit and any other instruments creating or acknowledging a present or future indebtedness), but excluding:

      (a) An instrument creating or acknowledging indebtedness for, or for money borrowed to defray, the consideration payable under a contract for the supply of goods and services;
      (b) A cheque or other bill of exchange, a bankers draft or a letter of credit (but not a bill of exchange accepted by a banker);
      (c) A banknote, a statement showing a balance on a bank account, or a lease or other disposition of property; and
      (d) A contract of insurance.
      Added: July 2016

    • Broker

      Means a person who acts as an intermediary between the buyer and seller, usually charging a commission. A broker who specializes in stocks, debt securities, commodities or options acts as agent and must be licensed by the CBB and registered with the licensed exchange as a member.

      Added: July 2011

    • Broker-dealer

      Means a person licensed by the CBB to operate as an agent on behalf of its clients (as broker) and as a principal for its own account (as dealer), in securities transactions. A broker-dealer must also be registered with the licensed exchange as a member.

      Added: July 2016

    • Business rules

      Are those rules issued by a licensed exchange, licensed market operator, or licensed clearing house or licensed central depository in its capacity as a self-regulatory organisation (SRO) to regulate the functions of such institutions and the admission, regulation and supervision of its members or participants.

      Amended: July 2016
      Added: July 2011