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  • FC-1.6 FC-1.6 Simplified Customer Due Diligence

    • FC-1.6.1

      Insurance licensees may apply simplified customer due diligence measures, as described in Paragraphs FC-1.6.2 to FC-1.6.8, if:

      (a) The customer is the Central Bank of Bahrain ('CBB'), the Bahrain Bourse ('BHB') or a licensee of the CBB;
      (b) The customer is a Ministry of a Gulf Cooperation Council ('GCC') or Financial Action Task Force ('FATF') member state government, a company in which a GCC government is a majority shareholder, or a company established by decree in the GCC;
      (c) The customer is a company listed on a GCC or FATF member state stock exchange with equivalent disclosure standards to those of the BHB;
      (d) The customer is a financial institution whose entire operations are subject to AML/CFT requirements consistent with the FATF Recommendations and it is supervised by a financial services supervisor in a FATF or GCC member state for compliance with those requirements;
      (e) The customer is a financial institution that is a subsidiary of a financial institution located in a FATF or GCC member state, and the AML/CFT requirements applied to its parent also apply to the subsidiary; or
      (f) [This Subparagraph was deleted in January 2018].
      (g) The transaction is a long-term insurance contract, either taken out in connection with a pension scheme relating to the customer's employment or occupation, or contains a no surrender clause and cannot be used as security for a loan.
      Amended: January 2019
      Amended: January 2018
      Amended: October 2015
      Amended: January 2007

    • FC-1.6.2

      For customers falling under the categories (a) to (e) specified in Paragraph FC-1.6.1, the information required under Paragraph FC-1.2.1 (for natural persons) or FC-1.2.7 (for legal entities or legal arrangements such as trusts) must be obtained. However, the verification and certification requirements in Paragraphs FC-1.2.3 and FC-1.2.8, and the due diligence requirements in Paragraph FC-1.2.11, may be dispensed with.

      Amended: January 2007

    • FC-1.6.3

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      Amended: January 2007

    • FC-1.6.4

      Insurance licensees wishing to apply simplified due diligence measures as allowed for under Paragraph FC-1.6.1 must retain documentary evidence supporting their categorisation of the customer.

      Amended: January 2007

    • FC-1.6.5

      Examples of such documentary evidence may include a printout from a regulator's website, confirming the licensed status of an institution, and internal papers attesting to a review of the AML/CFT measures applied in a jurisdiction.

    • FC-1.6.6

      For customers coming under Paragraph FC-1.6.1 (e), licensees must also obtain and retain a written statement from the parent institution of the subsidiary concerned, confirming that the subsidiary is subject to the same AML/CFT measures as its parent.

      Amended: January 2007

    • FC-1.6.7

      [This Paragraph was deleted in January 2007]

      Deleted: January 2007

    • FC-1.6.8

      Simplified customer due diligence measures must not be applied where a licensee knows, suspects, or has reason to suspect, that the applicant is engaged in money laundering or terrorism financing or that the transaction is carried out on behalf of another person engaged in money laundering or terrorism financing.

    • FC-1.6.8A

      Simplified customer due diligence measures must not be applied in situations where the licensee has identified high ML/TF/PF risks.

      Added: January 2022

    • FC-1.6.9

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018

    • FC-1.6.10

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      Amended: January 2007