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  • 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