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  • Client Money Client Money

    • CRA-4.5.4

      A licensee must properly handle and safeguard client money. The arrangement to handle and safeguard client money, must include, but not be limited to the following:

      (a) Establishing one or more client bank accounts with a retail bank licensed in the Kingdom of Bahrain for safekeeping of client money;
      (b) Client money must not be paid out of a client bank account other than for:
      (i) Paying the client on whose behalf it is being held;
      (ii) Meeting the client’s settlement obligations in respect of dealings in crypto-assets carried out by the licensee for the client, being the client on whose behalf it is being held;
      (iii) Paying money that the client owes to the licensee in respect of the conduct of regulated crypto-asset services; or
      (iv) Paying in accordance with the client’s written instructions, including standing authorities or one-off directions; and
      (c) Not used for licensee’s own use or given as collateral for any purpose to a third party or be subject to any restrictions.
      Amended: April 2023
      Added: April 2019

    • CRA-4.5.5

      Client money must be received by the licensee directly into a client bank account.

      Added: April 2019

    • CRA-4.5.5A

      A licensee must match any unidentified receipts in its client bank accounts with all relevant information in order to establish the nature of any payment and the identity of the person who has made it. Where the receipt is not client money, within one business day of becoming so aware, that amount of money should be paid out of the client bank account.

      Added: April 2023