Application and Documents
C4-1.2.1
Applicants for a license must fill in the application for authorisation online, available on the CBB website under E-services/online Forms. The applicant must also upload PDF copies/scanned copies of the following supporting documents:
(a) A comprehensive business plan for the application;(b) For overseas companies, the company’s current commercial registration or equivalent documentation;(c) Where the applicant is an existing Bahraini company, the applicant’s commercial registration certificate;(d) A certified copy of a Board resolution of the applicant, confirming its decision to seek a CBBcategory 4 investment firm license ;(e) Details of the proposedlicensee’s group structure, if any, and in the case of applicants that are part of a regulated group, a letter of non-objection to the proposed license application from the applicant’slead supervisor ;(f) In the case of branch applicants, a letter of non-objection to the proposed license application from the applicant’s home supervisor, together with confirmation that the applicant is in good regulatory standing; and(g) In the case of branch applicants, the audited financial statements of the applicant (head office) for the three years immediately prior to the date of application;(h) Applicant’s memorandum and articles of association (in draft form for applicants creating a new company).Added: January 2022C4-1.2.2
The CBB, at its complete discretion may ask for a guarantee from the applicant’s controlling or major shareholders on a case by case basis as it deems appropriate/necessary as part of the required documents to be submitted.
Added: January 2022C4-1.2.3
The business plan submitted in support of an application must include:
(a) An outline of the history of the applicant and its shareholders;(b) The proposed type of activities to be carried on by the applicant in/from the Kingdom of Bahrain, including the applicant’s strategy and market objectives;(c) The proposed Board and senior management of the applicant and the proposed organisational structure of the applicant;(d) An independent assessment of the risks that may be faced by the applicant, together with the proposed systems and controls framework to be put in place for addressing those risks and to be used for the main business functions; and(e) A proforma opening balance sheet for the applicant, together with a three-year financial projection, with all assumptions clearly outlined, demonstrating that the applicant will be able to meet applicable capital adequacy requirements.Added: January 2022C4-1.2.4
The applicant’s memorandum and articles of association must explicitly provide for it to undertake the activities proposed in the license application and must preclude the applicant from undertaking other regulated services, or commercial activities, unless these arise out of its investment activities or are incidental to those.
Added: January 2022C4-1.2.5
All documentation provided to the CBB as part of an application for a license must be in either the Arabic or English languages. Any documentation in a language other than English or Arabic must be accompanied by a certified English or Arabic translation thereof.
Added: January 2022C4-1.2.6
Any material changes or proposed changes to the information provided to the CBB in support of an authorisation application that occurs prior to authorisation must be reported to the CBB.
Added: January 2022C4-1.2.7
Articles 44 to 47 of the CBB Law govern the licensing process. This prescribes a single stage process, with the CBB required to take a decision within 60 calendar days of an application being deemed complete (i.e. containing all required information and documents). All applicants are strongly encouraged to contact the CBB at an early stage to discuss their plans, for guidance on the CBB’s requirements.
Added: January 2022C4-1.2.8
The CBB recognises that applicants may find it difficult to complete all the incorporation procedures in the absence of preliminary assurances regarding the likelihood of obtaining a license. Therefore, CBB may provide an initial ‘in principle’ confirmation that the applicant appears likely to meet the CBB’s licensing requirements, subject to the remaining information and documents being assessed as satisfactory. The ‘in principle’ confirmation will also list all outstanding documents required before an application can be considered complete and subject to formal consideration. An ‘in principle’ confirmation does not constitute a license approval, nor does it commit the CBB to issuing a license. The applicants can later complete their applications for final approval.
Added: January 2022C4-1.2.9
The CBB will review the application and duly advise the applicant in writing when it has:
(a) Granted the application without conditions;(b) Granted the application subject to conditions specified by the CBB; or(c) Refused the application, stating the grounds on which the application has been refused and the process for appealing against that decision.Added: January 2022C4-1.2.10
Should a license be granted, the CBB will notify the applicant in writing of the fact; the CBB will also publish its decision to grant a license in the Official Gazette and in two local newspapers (one published in Arabic, the other in English).
Added: January 2022C4-1.2.11
The CBB may refuse to grant a license if in its opinion:
(a) The requirements of the CBB Law or this Module are not met;(b) False or misleading information has been provided to the CBB, or information which should have been provided to the CBB has not been so provided; or(c) The CBB believes it necessary in order to safeguard the interests of potential customers.Added: January 2022C4-1.2.12
Where the CBB proposes to refuse an application for a license, it will give the applicant a written notice to that effect. Applicants will be given a minimum of 30 calendar days from the date of the written notice to appeal the decision.
Added: January 2022C4-1.2.13
Before the final approval is granted to a
licensee , confirmation from a retail bank addressed to the CBB that thelicensee’s capital as specified in the business plan has been paid in must be provided to the CBB.Added: January 2022
