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  • FC-3.1 FC-3.1 Appointment of MLRO

    • FC-3.1.1

      Insurance firms (except captive insurance firms managed by an insurance manager), insurance brokers and insurance managers (that manage a captive insurance firm) must appoint a Money Laundering Reporting Officer ('MLRO'). In the case of insurance managers that manage captive insurance firms, the insurance manager must appoint a MLRO for each of the captive insurance firms under its management.

      Amended: January 2007
      Amended: October 2007

    • FC-3.1.2

      Insurance managers may nominate the same individual to act as MLRO for more than one captive insurance firm, providing this person can meet in full the responsibilities of MLRO for each captive insurance firm in question.

      Amended: January 2007

    • FC-3.1.3

      The position of MLRO is a controlled function and the MLRO is an approved person.

    • FC-3.1.4

      For details of the CBB's requirements regarding controlled functions and approved persons, see Section AU-1.2. Amongst other things, approved persons require CBB approval before being appointed, which is granted only if they are assessed as 'fit and proper' for the function in question. A completed Form 3 must accompany any request for CBB approval.

      Amended: January 2007

    • FC-3.1.5

      The position of MLRO must not be combined with functions that create potential conflicts of interest, such as an internal auditor or business line head. The position of MLRO may not be outsourced.

    • FC-3.1.6

      Subject to Paragraph FC-3.1.5, however, the position of MLRO may otherwise be combined with other functions in the insurance licensee, such as that of Compliance Officer, in cases where the volume and geographical spread of the business is limited and, therefore, the demands of the function are not likely to require a full time resource. Paragraph FC-3.1.9 requires that the MLRO is a Director or employee of the licensee, so the function may not be outsourced to a third party employee.

      Amended: January 2007
      Amended: October 2007

    • FC-3.1.6A

      For purposes of Paragraphs FC-3.1.5 and FC-3.1.6 above, insurance licensees must clearly state in the Application for Approved Person Status — Form 3 — when combining the MLRO or DMLRO position with any other position within the insurance licensee.

      Added: October 2017

    • FC-3.1.7

      Insurance licensees must appoint at least one deputy MLRO (or more depending on the scale and complexity of the licensee's operations). The deputy MLRO(s) must be resident in Bahrain unless otherwise agreed with the CBB.

      Amended: January 2007

    • FC-3.1.7A

      The deputy MLRO should be able to support the MLRO discharge his responsibilities and to deputise for him in his absence. In the case of insurance licensees undertaking significant overseas business, the CBB would normally expect to see one or more deputy MLRO(s) residing in the jurisdiction(s) where the bulk of the customer business is processed. In such cases, the CBB would normally agree to an application for an exemption from the residency requirement in Rule FC-3.1.7.

      Amended: January 2007

    • FC-3.1.8

      Insurance licensees should note that although the MLRO may delegate some of his functions, either to other employees of the licensee or even (in the case of larger groups) to individuals performing similar functions for other group entities, that the responsibility for compliance with the requirements of this Module remains with the licensee and the designated MLRO.

      Amended: January 2007

    • FC-3.1.9

      So that he can carry out his controlled function effectively, insurance licensees must ensure that their MLRO:

      (a) Is a member of senior management of the licensee;
      (b) Has a sufficient level of seniority within the insurance licensee, has the authority to act without interference from business line management and has direct access to the Board and senior management (where necessary);
      (c) Has sufficient resources, including sufficient time and (if necessary) support staff, and has designated a replacement to carry out the function should the MLRO be unable to perform his duties;
      (d) Has unrestricted access to all transactional information relating to any financial services provided by the insurance licensee to a customer, or any transactions conducted by the insurance licensee on behalf of that customer;
      (e) Is provided with timely information needed to identify, analyse and effectively monitor customer accounts;
      (f) Has access to all customer due diligence information obtained by the insurance licensee; and
      (g) Is resident in Bahrain.
      Amended: October 2011
      Amended: January 2007
      Amended: October 2007

    • FC-3.1.10

      In addition, insurance licensees must ensure that their MLRO is able to:

      (a) Monitor the day-to-day operation of their policies and procedures relevant to this Module; and
      (b) Respond promptly to any reasonable request for information made by the Financial Intelligence Directorate or the CBB.
      Amended: October 2019
      Amended: April 2010
      Amended: October 2007
      Amended: January 2007

    • FC-3.1.11

      If the position of MLRO falls vacant, the insurance licensee must appoint a permanent replacement (after obtaining CBB approval), within 120 calendar days of the vacancy occurring. Pending the appointment of a permanent replacement, the licensee must make immediate interim arrangements (including the appointment of an acting MLRO) to ensure continuity in the MLRO function's performance. These interim arrangements must be approved by the CBB.

      Amended: January 2007