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  • FC-10 FC-10 Fraud

    • FC-10.1 FC-10.1 General Requirements

      • FC-10.1.1

        The requirements of this Chapter apply to Category 1 investment firms and Category 2 investment firms only.

        Amended: July 2007

      • FC-10.1.2

        Investment firm licensees must ensure that they allocate appropriate resources and have in place systems and controls to deter, detect, and record instances of fraud or attempted fraud.

      • FC-10.1.3

        Fraud may arise from internal sources originating from changes or weaknesses to processes, products and internal systems and controls. Fraud can also arise from external sources, for instance through false invoicing or advance fee frauds. Further guidance — and occasional investor alerts — can be found on the CBB's website (www.cbb.gov.bh).

        Amended: January 2007

      • FC-10.1.4

        Any actual or attempted fraud incident (however small) must be reported to the appropriate authorities (including the Compliance Directorate at the CBB) and followed up. Monitoring systems must be designed to measure fraud patterns that might reveal a series of related fraud incidents.

        Amended: January 2016
        Amended: January 2007

      • FC-10.1.5

        Investment firm licensees must ensure that a person, of sufficient seniority, is given overall responsibility for the prevention, detection and remedying of fraud within the organisation.

      • FC-10.1.6

        Investment firm licensees must ensure the effective segregation of functions and responsibilities, between different individuals and departments, such that the possibility of financial crime is reduced and that no single individual is able to initiate, process and control a transaction.

      • FC-10.1.7

        Investment firm licensees must provide regular training to their management and staff, to make them aware of potential fraud risks.