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  • FC-A FC-A Introduction

    • FC-A.1 FC-A.1 Purpose

      • Executive Summary

        • FC-A.1.1

          This Module applies, to relevant insurance licensees, a comprehensive framework of Rules and Guidance aimed at combating money laundering and terrorist financing. In so doing, it helps implement the FATF Recommendations on combating money laundering and financing of terrorism and proliferation, issued by the Financial Action Task Force (FATF), that are relevant to insurance licensees; it also implements IAIS guidance in this area. (Further information on these can be found in Chapter FC-9.) The Module also contains measures relating to the combating of fraud in the insurance sector.

          Amended: October 2015
          Amended: January 2007

        • FC-A.1.2

          The Module requires insurance firms and insurance brokers to have effective anti-money laundering ('AML') policies and procedures, in addition to measures for combating the financing of terrorism ('CFT'). The Module contains detailed requirements relating to customer due diligence, reporting and the role and duties of the Money Laundering Reporting Officer (MLRO). Furthermore, examples of suspicious activity are provided (see Part B, Supplementary Information, Appendix FC-(iv)), to assist licensees to monitor transactions and fulfil their reporting obligations under Bahrain law. Because they represent negligible money laundering/terrorism financing risk, these requirements do not apply to insurance consultants nor, in some circumstances, to insurance managers.

          Amended: July 2007

        • FC-A.1.3

          This Module also covers measures in place to combat fraud: these apply to all insurance licensees. Chapter FC-10 sets out basic requirements regarding measures to deter, detect and report instances of fraud and attempted fraud.

      • Legal Basis

        • FC-A.1.4

          This Module contains the Central Bank of Bahrain's (the CBB) Directive (as amended from time to time) regarding the combating money laundering and terrorism financing and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 (‛CBB Law’). The Directive in this Module is applicable to insurance licensees (including their approved persons).

          Amended: January 2022
          Amended: January 2011
          Added: January 2007

        • FC-A.1.5

          For an explanation of the CBB’s rule-making powers and different regulatory instruments, see Section UG-1.1.

          Added: January 2007

    • FC-A.2 FC-A.2 Module History

      • FC-A.2.1

        This Module was first issued by the BMA in April 2005, together with the rest of Volume 3 (Insurance). Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

        Amended: January 2007

      • FC-A.2.2

        When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 3 was updated in January 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        Added: January 2007

      • FC-A.2.3

        A list of recent changes made to this Module is detailed in the table below:

        Module Ref.Change DateDescription of Changes
        FC-A.1;
        FC-2;
        FC-3;
        FC-5;
        FC-6.1;
        FC-6.2;
        FC-6.5        		01/07/05Inclusion of a revised and renamed Customer Due Diligence Chapter (including a new non-face-to-face business Section). Renamed Suspicious Transaction Reporting Chapter, with minor clarifications to the text. Changes to layout of FC-5 and clarifications to the text. Correction of minor typographical and cross-referencing errors.
        FC01/10/05New Chapter on Non-Cooperative Countries/Territories, and UN notifications. Section on charities removed, since not applicable to insurance licensees. Extensive drafting changes to remainder of text, to improve clarity and ensure consistency across different CBB Rulebooks; but no other changes of substance.
        FC-1.201/01/06Clarified in FC-1.2.11 that the verification for item (a) applies to the identity of the ultimate provider of funds.
        FC-3.1.701/04/06Clarified and added guidance Paragraph dealing with residency requirements of MLRO.
        FC-4.3.101/07/06Updated contact information for Compliance Directorate.
        FC-A.1.401/2007New Rule introduced, categorising this Module as a Directive
        FC-1.6.301/2007Clarified simplified due diligence rules for transactions under BD6,000.
        FC-3.3.5A and FC-3.3.701/2007Allowed for a transition period for the external auditor's report required under SubParagraph FC-3.3.1(d) and clarified when all reports are due.
        FC-4.3.101/2007Updated new e-mail address for Compliance Directorate.
        FC-1.7.2(d)10/2007Clarified the record retention period for introduced business in line with Article 60 of the CBB Law
        FC-2.2.3,
        FC-2.2.6,
        FC-4.2.5,
        FC-6.1.1,
        FC-6.1.2,
        FC-6.1.3        		10/2007Clarified the record retention period for various transactions to be in line with Article 60 of the CBB Law
        FC-3.3.210/2007Clarified the appointment of external auditors for the purposes of the report required under Paragraph FC-3.3.1 (d)
        FC-10.1.1110/2007Added reference to new Guidance paper on fraud issued by the IAIS.
        FC-3.3.704/2008Clarified to whom in the CBB should the reports required under Paragraph FC-3.3.1 be submitted to.
        FC-1.7.2,
        FC-2.2.3,
        FC-2.2.6,
        FC-4.2.5,
        FC-6.1.1,
        FC-6.1.2,
        FC-6.1.3        		04/2008Reduced retention requirements of records to five years to be consistent with AML Law and other Volumes of the CBB Rulebook
        Table of Contents07/2008Added Supplementary Documents to Part B.
        FC-1.1.307/2009Provided guidance for insurance brokers on definition of 'customers'.
        FC-3.1.10,
        FC-3.2.1,
        FC-4.2.3,
        FC-4.3.1        		04/2010Updated name and e-mail of relevant authority to Financial Intelligence Unit.
        FC-A.1.401/2011Clarified legal basis
        FC-3.1.910/2011Clarified requirements for MLRO.
        FC-3.310/2011Amended Section to allow for CBB-approved consultancy firm to do required sample testing and report under Paragraph FC-3.3.1.
        FC-3.3.5 and FC-3.3.601/2012Amended to reflect the addition of approved consultancy firm.
        FC-4.2.310/2014Updated method of submitting STRs.
        FC-4.310/2014Updated relevant authorities information.
        FC10/2015Updated to reflect February 2012 update to FATF Recommendations.
        FC-1.5.107/2016Aligned definition of PEPs as per FATF Recommendations.
        FC-1.5.407/2016Definition of PEPs is already included in Glossary so this guidance paragraph was deleted.
        FC-4.2.307/2016Updated instructions for STR.
        FC-1.2.9A01/2017Added guidance paragraph on CR printing
        FC-7.2.1AA04/2017Implementing and complying with the United Nations Security Council resolutions requirement.
        FC-1.1.2B10/2017Amended paragraph on CDD requirements.
        FC-1.2.710/2017Amended paragraph.
        FC-1.2.8A10/2017Added new paragraph on legal entities or legal arrangements CDD.
        FC-2.2.10 – FC-2.2.1110/2017Amended paragraphs on On-going CDD and Transaction Monitoring.
        FC-3.1.6A10/2017Added paragraph on combining the MLRO or DMLRO position with any other position within the licensee.
        FC-B.3.401/2018Amended paragraph.
        FC-1.5.501/2018Added new paragraph.
        FC-1.5.601/2018Added new paragraph.
        FC-1.6.101/2018Deleted sub-paragraph (f).
        FC-1.7.101/2018Amended paragraph.
        FC-4.2.601/2018Amended paragraph.
        FC-7.1.401/2018Amended paragraph.
        FC-7.2.201/2018Deleted paragraph.
        FC-1.1.207/2018Deleted sub-paragraph (g).
        FC-1.2.107/2018Amended guidance deleting the threshold.
        FC-1.6.307/2018Deleted Paragraph.
        FC-1.6.907/2018Deleted Paragraph.
        FC-1.6.1007/2018Deleted Paragraph.
        FC-1.6.101/2019Amended references.
        FC-3.3.2 - FC-3.3.501/2019Amended references.
        FC-3.3.5A01/2019Deleted paragraph.
        FC-3.3.701/2019Amended references.
        FC-6.1.201/2019Amended references.
        FC-3.1.1010/2019Amended authority name.
        FC-3.2.110/2019Amended authority name.
        FC-4.2.310/2019Amended authority name.
        FC-4.3.210/2019Amended authority name.
        FC-7.2.1AA10/2019Defined 'without delay'.
        FC-1.1.101/2020Amended Paragraph on procedures approval.
        FC-1.2.101/2020Added a new sub-Paragraph.
        FC-3.3.501/2020Amended Paragraph on report submission date.
        FC-3.3.701/2020Amended Paragraphs references.
        FC-2.1.4 & FC-2.1.504/2020Added new Paragraphs on KPIs compliance with AML/CFT requirements.
        FC-5.1.6A01/2021Added a new Paragraph on requirements to hire new employees.
        FC-A.1.401/2022Amended Paragraph to replace financial crime with money laundering and terrorism financing.
        FC-C01/2022New chapter on risk-based approach (RBA).
        FC-1.101/2022Amended Section to introduce additional rules for non-resident customers, amendments to customers onboarded prior to full completion of customer due diligence, digital onboarding etc.
        FC-1.201/2022Amended Section to include E-KYC and electronic documents law requirements.
        FC-1.301/2022Amended Section on enhanced due diligence requirements for customers identified as having higher risk profile.
        FC-1.401/2022Amended Section to introduce detailed requirements for digital onboarding and related requirements.
        FC-1.5.201/2022Amended Paragraph on onboarding non-Bahraini PEPs using digital ID applications.
        FC-1.5A01/2022Added a new Section on Enhanced Due Diligence: Charities, Clubs and Other Societies
        FC-1.6.8A01/2022Added a new Paragraph on not applying simplified CDD in situations where the licensee has identified high ML/TF/PF risks.
        FC-2.2.501/2022Amended Paragraph.
        FC-3.3.1B01/2022Amended Paragraph.
        FC-3.3.201/2022Amended Paragraph.
        FC-3.3.501/2022Amended Paragraph.
        FC-3.3.601/2022Deleted Paragraph.
        FC-3.3.701/2022Deleted Paragraph.
        FC-5.1.6A01/2022Deleted Paragraph.
        FC-C.2.301/2023Minor amendment to Paragraph.
        FC-7.2.4(c)01/2023Added a new Sub-paragraph on reporting any frozen assets or actions taken.
        FC-1.1.14A10/2023Amended Sub-Paragraph on the enhanced diligence for the non-resident accounts.
        FC-1.1.14E10/2023Deleted Paragraph.
        FC-1.1.14I10/2023Deleted Paragraph.
        FC-1.1.1710/2023Added a new Paragraph on CDD and Customer onboarding requirements.
        FC-1.810/2023Added a new Section on reliance on third parties for customer due diligence.
        FC-1.2.101/2024Amended Paragraph on customer due diligence.

      • FC-A.2.3 [Deleted]

        Deleted: January 2007

      • FC-A.2.4

        Guidance on the implementation and transition to Volume 3 (Insurance) is given in Module ES (Executive Summary).

        Amended: January 2007