SIO-13 Information Gathering by the CBB
SIO-13.1 Power to Request Information
SIO-13.1.1
Stablecoin issuers must provide all information that the CBB requests in order to discharge its regulatory obligations.
Added: July 2025SIO-13.1.2
Stablecoin issuers must provide all relevant information and assistance to the CBB inspectors and appointed experts on demand as required by Articles 111 and 114 of the CBB Law. Failure by stablecoin issuers to cooperate fully with the CBB’s inspectors or appointed experts, or to respond to their examination reports within the time limits specified, will be treated as demonstrating a material lack of cooperation with the CBB which will result in enforcement measures.
Added: July 2025SIO-13.1.3
Article 163 of the CBB Law provides for criminal sanctions where false or misleading statements are made to the CBB or any person /appointed expert appointed by the CBB to conduct an inspection or investigation on the business of the stablecoin issuer.
Added: July 2025SIO-13.2 Access to Premises
SIO-13.2.1
Representatives of the CBB, or persons appointed by the CBB for investigation purposes may access, with or without notice, any of the stablecoin issuer’s business premises in relation to the discharge of the CBB’s functions pursuant to the CBB Law.
Added: July 2025SIO-13.2.2
A stablecoin issuer must take reasonable steps to ensure that its agents and providers under outsourcing arrangements permit such access to their business premises, to the CBB.
Added: July 2025SIO-13.2.3
A stablecoin issuer must take reasonable steps to ensure that each of its providers under outsourcing arrangements deals in an open and cooperative way with the CBB in the discharge of its functions in relation to the stablecoin issuer.
Added: July 2025SIO-13.2.4
The cooperation that stablecoin issuers are expected to procure from such providers is similar to that expected of stablecoin issuers themselves.
Added: July 2025SIO-13.3 Accuracy of Information
SIO-13.3.1
A stablecoin issuer must ensure that all information it provides to the CBB is:
(a) Factually accurate or, in the case of estimates and judgements, fairly and properly based on appropriate analysis and enquiries have been made by the stablecoin issuer; and(b) Complete, in that it should include everything which the CBB would reasonably and ordinarily expect to have or require.Added: July 2025SIO-13.3.2
If a stablecoin issuer becomes aware or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way, it must notify the CBB immediately. The notification must include:
(a) Details of the information, which is or may be false, misleading, incomplete or inaccurate, or has or may have changed;(b) An explanation of why such information was or may have been provided in false, misleading, incomplete or inaccurate manner; and(c) The correct information.Added: July 2025SIO-13.3.3
If the information in Paragraph SIO-13.3.2 cannot be submitted with the notification (because it is not immediately available), it must instead be submitted as soon as possible afterwards.
Added: July 2025SIO-13.4 Methods of Information Gathering
SIO-13.4.1
The CBB uses various methods of information gathering on its own initiative which require the cooperation of stablecoin issuers:
(a) Representatives of the CBB may make onsite visits at the premises of the stablecoin issuer. These visits may be made on a regular basis, or on a sample basis, for special purposes such as theme visits (looking at a particular issue across a range of stablecoin issuers), or when the CBB has a particular reason for visiting a stablecoin issuer;(b) Appointees of the CBB may also make onsite visits at the premises of the stablecoin issuer. Appointees of the CBB may include persons who are not CBB staff, but who have been appointed to undertake particular tasks or activities for the CBB, such as in the case of Appointed Experts (refer to Section SIO-13.5).(c) The CBB may request the stablecoin issuer to attend meetings at the CBB’s premises or elsewhere;(d) The CBB may seek information or request documents by telephone, at meetings or in writing, including electronic communication;(e) The CBB may require stablecoin issuers to submit various documents or notifications, as per Chapter SIO-13, in the ordinary course of their business such as reports or upon the occurrence of a particular event in relation to the stablecoin issuer such as a change in control.Added: July 2025SIO-13.4.2
When seeking meetings with a stablecoin issuer or access to the stablecoin issuer’s premises, the CBB or the CBB appointee will access a stablecoin issuer’s documents and personnel. Such requests will normally be made during reasonable business hours and with proper notice. However, there may be instances where the CBB may access the stablecoin issuer’s premises without prior notice.
Added: July 2025SIO-13.4.3
The CBB expects that a stablecoin issuer should:
(a) Make itself readily available for meetings with representatives or appointees of the CBB;(b) Give representatives or appointees of the CBB access to any records, files, tapes or computer systems, which are within the stablecoin issuer’s possession or control, and provide any facilities which the representatives or appointees may reasonably request;(c) Produce to representatives or appointees of the CBB specified documents, files, tapes, computer data or other material in the stablecoin issuer’s possession or control requested or required;(d) Print information in the stablecoin issuer’s possession or control which is held on computer or otherwise convert it into a readily legible document or any other record which the CBB may reasonably request;(e) Arrange for representatives or appointees of the CBB to copy documents or other material on the premises of the stablecoin issuer at the stablecoin issuer’s expense and to remove copies and hold them elsewhere, or provide any copies, as requested by the CBB or its appointees; and(f) Answer truthfully, fully and promptly all questions which representatives or appointees of the CBB put to it.Added: July 2025SIO-13.4.4
The CBB considers that a stablecoin issuer should ensure that the following persons act in the manner set out in Paragraph SIO-13.4.3:
(a) Its employees; and(b) Any other members of its group and their employees.Added: July 2025SIO-13.5 The Role of the Appointed Expert
SIO-13.5.1
The content of this Chapter is applicable to all stablecoin issuers and appointed experts.
Added: July 2025SIO-13.5.2
The purpose of the contents of this Chapter is to highlight the roles and responsibilities of appointed experts when appointed pursuant to Articles 114 or 121 of the CBB Law.
Added: July 2025SIO-13.5.3
The CBB uses its own inspectors to undertake on-site examinations of stablecoin issuers as an integral part of its regular supervisory role. In addition, the CBB may commission reports on matters relating to the business of stablecoin issuers in order to assist it in assessing their compliance with CBB requirements.
Added: July 2025SIO-13.5.4
Appointed experts must not be the same firm appointed as external auditor of the stablecoin issuer.
Added: July 2025SIO-13.5.5
The CBB will decide on the range, scope and frequency of work to be carried out by appointed experts.
Added: July 2025SIO-13.5.6
The appointment of an appointed expert will be made in writing directly with the appointed experts concerned. A separate letter is sent to the stablecoin issuer, notifying them of the appointment. At the CBB’s discretion, a trilateral meeting may be held at any point, involving the CBB and representatives of the stablecoin issuer and the appointed experts, to discuss any aspect of the inspection or investigation or the report produced by the appointed expert.
Added: July 2025SIO-13.5.7
Following the completion of the investigation, the CBB will normally provide feedback on the findings of the investigation to the stablecoin issuer.
Added: July 2025SIO-13.5.8
Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to the stablecoin issuer’s group structure). The report produced by the appointed experts is the property of the CBB.
Added: July 2025SIO-13.5.9
Compliance by appointed experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a particular stablecoin issuer (i.e. create a conflict of interest).
Added: July 2025SIO-13.5.10
The CBB may appoint one or more of its officials to work with the appointed experts’ team for a particular stablecoin issuer.
Added: July 2025The Required Report
SIO-13.5.11
The scope of the required report will be determined and detailed by the CBB in the appointment letter. Appointed experts would normally be required to report on one or more of the following aspects of a stablecoin issuer’s business:
(a) Accounting and other records;(b) Internal control systems;(c) Returns of information provided to the CBB;(d) Operations of certain departments; and/or(e) Other matters specified by the CBB.Added: July 2025SIO-13.5.12
Appointed experts will be required to form an opinion on whether, during the period examined, the stablecoin issuer is in compliance with the relevant provisions of the CBB Law and the CBB’s other requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.
Added: July 2025Other Notifications to the CBB
SIO-13.5.13
Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, including that the licensing conditions are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concerned stablecoin issuer, or that the interests of clients are at risk because of adverse changes in the financial position or in the management or other resources of the stablecoin issuer. Notwithstanding the above, it is primarily the stablecoin issuer’s responsibility to report such matters to the CBB.
Added: July 2025Permitted Disclosure by the CBB
SIO-13.5.14
Appointed experts must keep all information relating to the stablecoin issuer confidential and not divulge it to a third party except with the CBB’s written permission or unless required by applicable laws in the Kingdom of Bahrain.
Added: July 2025
