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  • GR-15 GR-15 Marketing of Financial Services

    • GR-15.1 GR-15.1 Client Money Requirements

      • GR-15.1.1

        This Chapter applies to all PSPs that are allowed to hold client money.

        Added: April 2023

      • GR-15.1.2

        Licensees must receive client money into a client money account with a retail bank in Bahrain and make clear in the title of the bank account that the funds in the account belong to one or more customers of the licensee and not to the licensee.

        Added: April 2023

      • GR-15.1.3

        Licensees must ensure that it has established and implemented adequate policies, procedures and systems, including those related to fraud risk and that the client money is:

        (a) Held in a segregated client money account;
        (b) Used only for the purposes for which the licensee received it from its customers;
        (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; and
        (d) Reported as a separate balance sheet item in the licensee’s financial statements specifying also the nature and purpose for which such funds are held on behalf of its customers.
        Added: April 2023

      • GR-15.1.4

        Licensees must perform reconciliations of client money accounts with related client customer accounts in their accounting records. These reconciliations must be carried out on a monthly basis as at the last business day of each calendar month. The licensee must ensure that the reconciliations are completed within 10 business days of the month end so that any unresolved differences, shortfalls and excess balances can be investigated, and corrective action initiated.

        Added: April 2023

      • GR-15.1.5

        Licensees holding client money in the course of carrying out payment services must appoint independent auditors to perform an audit of client money every 6 months and submit the report to the CBB as required in Paragraph BR-1.1.6.

        Added: April 2023