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  • IM-3.4 IM-3.4 Financial Crime

    • IM-3.4.1

      The general law of Bahrain imposes obligations on individuals and firms in relation to the prevention and prohibition of the laundering of money. All insurance licensees are subject to the statutory requirements of this Law.

      Rulebook Reference Decree Law No.4

    • IM-3.4.2

      Chapters FC-1 to FC-9 applies to insurance firms and insurance brokers. Where captive insurers are managed by an insurance manager, these Chapters are also to be applied to the insurance manager. This Module must be applied when dealing with new clients and when renewing policies or other insurance arrangements.

      Rulebook Reference FC-B.1.1
      Amended: January 2007

    • IM-3.4.3

      Chapter FC-10 dealing with insurance fraud, applied to all insurance licensees.

      Rulebook Reference FC-B.1.4

    • IM-3.4.4

      Chapter FC-1 outlines the requirements for customer due diligence. In the case of captive insurance firms it is expected that this identity will be apparent both from the ownership of the captive and the origin of insurance premiums from traceable bank accounts. In this case, no further verification will be needed as a matter of routine, although this does not exempt firms and individuals from reporting any transaction that they consider suspicious in nature.

      Rulebook Reference FC-1
      Amended: January 2007

    • IM-3.4.5

      The reporting of suspicious transactions is the responsibility of the firm's Money Laundering Reporting Officer ('MLRO'). Captive insurance firms that are managed by an insurance manager are specifically exempted from appointing a MLRO, as the insurance manager must appoint one to perform these responsibilities for all firms under its management.

      Rulebook Reference FC-3.1.1 and
      FC-3.1.2
      Amended: January 2007
      Amended: October 2007

    • IM-3.4.6

      The MLRO will prepare an annual report on compliance with the anti-money laundering and combating terrorism financing controls and procedures. The Boards of captive firms will need to include the consideration of this report as a standing item for Board meetings each year.

      Rulebook Reference FC-3.3

    • IM-3.4.7

      Appendix FC-(iv), contained in Part B of the CBB Rulebook, provides guidance material and examples of transactions that would be considered suspicious for the purposes of this Directive.

      Rulebook Reference Appendix FC-(iv)
      Amended: January 2007