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  • FC-3.1 FC-3.1 Appointment of MLRO

    • FC-3.1.1

      Investment firm licensees must appoint a Money Laundering reporting officer ("MLRO"). The position of MLRO is a controlled function and the MLRO is an approved person.

      Amended: January 2007

    • FC-3.1.1.A

      For details of 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-3.1.2

      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-3.1.3

      Subject to Paragraph FC-3.1.2, however, the position of MLRO may otherwise be combined with other functions in the 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.

      Amended: July 2010
      Amended: January 2007

    • FC-3.1.3A

      For purpose of Paragraphs FC-3.1.2 and FC-3.1.3 above, Investment firm 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 Investment firm licensee.

      Added: October 2017

    • FC-3.1.4

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

      Amended: January 2007

    • FC-3.1.5

      Investment firm 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, the responsibility for compliance with the requirements of this Module remains with the licensee and the designated MLRO. The deputy MLRO should be able to support the MLRO discharge his responsibilities and to deputise for him in his absence.

      Amended: January 2007

    • FC-3.1.6

      So that he can carry out his functions effectively, investment firm licensees must ensure that their MLRO:

      (a) Is a member of senior management of the licensee and has a sufficient level of seniority within the licensee, has the authority to act without interference from business line management and has direct access to the Board and senior management (where necessary);
      (b) [Subparagraph (b) combined with (a) in January 2011];
      (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 licensee to a customer, or any transactions conducted by the 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 licensee; and
      (g) Is resident in Bahrain.
      Amended: October 2011
      Amended: January 2011
      Amended: January 2007

    • FC-3.1.7

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

      (a) Monitor the day-to-day operation of its 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: July 2010
      Amended: January 2007

    • FC-3.1.8

      If the position of MLRO falls vacant, the 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