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  • FC-A FC-A Introduction

    • FC-A.1 FC-A.1 Purpose

      • Executive Summary

        • FC-A.1.1

          This Module applies, to all specialised licensees, a comprehensive framework of Rules and Guidance aimed at combating money laundering and terrorist financing. In so doing, it helps implement the 40 Recommendations on money laundering and 9 Special Recommendations on terrorist financing, issued by the Financial Action Task Force (FATF), that are relevant to specialised licensees. (Further information on these can be found in Chapter FC-10.) The Module also contains measures relating to the combating of fraud.

          October 2010

        • FC-A.1.2

          The Module requires specialised licensees to have effective anti-money laundering ('AML') policies and procedures, in addition to measures for combating the financing of terrorism ('CFT'). The Module contains detailed requirements relating to customer due diligence, reporting and the role and duties of the Money Laundering Reporting Officer (MLRO). Furthermore, examples of suspicious activity are provided, to assist licensees monitor transactions and fulfill their reporting obligations under Bahrain law.

          October 2010

        • FC-A.1.3

          This Module also covers measures in place to combat fraud. Chapter FC-11 sets out basic requirements regarding measures to deter, detect and report instances of fraud and attempted fraud.

          October 2010

      • Legal Basis

        • FC-A.1.4

          This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) regarding the combating money laundering and terrorism financing and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all specialised licensees.

          Amended: January 2022
          Amended: January 2011
          October 2010

        • FC-A.1.5

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          October 2010

    • FC-A.2 FC-A.2 Module History

      • Evolution of Module

        • FC-A.2.1

          This Module was first issued in October 2010. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

          October 2010

        • FC-A.2.2

          A list of recent changes made to this Module is detailed in the table below:

          Module Ref.Change DateDescription of Changes
          FC-A.1.401/2011Clarified legal basis.
          FC-B.1.107/2011Exempted administrators from specific sections of this Module.
          FC-4.1.704/2012Clarified requirements for MLRO.
          FC-4.304/2012Amended Section to allow for CBB-approved consultancy firm to do required sample testing and report under Paragraph FC-4.3.1.
          FC-B.1.110/2012Amended the scope of application to have a limited scope for ancillary services providers and to expand the role of the general managers for those licensees allowed to follow only certain Chapters of Module FC.
          FC-1.2.3(b)01/2013Clarified location of guidance under Part B Supplementary Information Appendix FC-(v).
          FC-1.2.11(f) and FC-1.2.11A04/2013Provided additional details when dealing with employee benefit trusts and occupational savings schemes.
          FC-1.10.104/2013Updated language to refer to licensed exchange.
          FC-2.2.3A04/2013Guidance Paragraph added for trust service providers on automatic transaction monitoring.
          FC-7.1.404/2013Reference made to the use of electronic records.
          FC-5.2.310/2014Updated method of submitting STRs.
          FC-5.310/2014Updated relevant authorities information.
          FC-1.2.807/2016Change made for consistency across CBB Rulebook.
          FC-1.5.407/2016Definition of PEPs is already included in Glossary so this guidance paragraph was deleted.
          FC-5.2.307/2016Updated instructions for STR.
          FC-1.2.9A01/2017Added guidance paragraph on CR printing
          FC-8.2.1AA04/2017Added new Paragraph on Implementing and complying with the United Nations Security Council resolutions requirement.
          FC-1.1.2A and FC-1.1.2B10/2017Added new paragraphs on CDD requirements.
          FC-1.2.710/2017Amended paragraph.
          FC-1.2.8A10/2017Added new paragraph on legal entities or legal arrangements CDD.
          FC-2.2.10 – FC- 2.2.1110/2017Amended paragraphs on On-going CDD and Transaction Monitoring.
          FC-4.1.4A10/2017Added paragraph on combining the MLRO or DMLRO position with any other position within the licensee.
          FC-B.2.401/2018Added new paragraph on implementation of groupwide programmes against money laundering and terrorist financing.
          FC-1.7.101/2018Amended paragraph.
          FC-1.10.101/2018Deleted paragraph.
          FC-5.2.601/2018Amended paragraph.
          FC-8.1.301/2018Added new paragraph on due diligence measures (FATF).
          FC-8.1.401/2018Added new guidance paragraph.
          FC-8.2.201/2018Deleted paragraph.
          FC-1.1.207/2018Deleted sub-paragraph (a).
          FC-1.907/2018Amended Section title deleting the threshold.
          FC-1.9.207/2018Amended Paragraph deleting the threshold.
          FC-1.10.107/2018Deleted sub-paragraph (a).
          FC-1.10.307/2018Deleted Paragraph.
          FC-1.10.807/2018Deleted Paragraph.
          FC-1.10.101/2019Amended reference.
          FC-B.1.110/2019Amended Paragraph on scope of application.
          FC-1.6.410/2019Amended Paragraph on societies and clubs fund transfers.
          FC-1.8.210/2019Amended authority name.
          FC-4.1.810/2019Amended authority name.
          FC-4.2.110/2019Amended authority name.
          FC-5.2.310/2019Amended authority name.
          FC-5.3.210/2019Amended authority address.
          FC-8.2.1AA10/2019Amended Paragraph on terrorist financing.
          FC-1.1.101/2020Amended Paragraph on procedures approval.
          FC-1.2.101/2020Added a new Sub-paragraph.
          FC-4.3.501/2020Amended Paragraph on report submission date.
          FC-4.3.701/2020Amended Paragraph references.
          FC-2.1.3 & FC-2.1.404/2020Added new Paragraphs on KPIs compliance with AML/CFT requirements.
          FC-1.1.5A01/2021Added a new Paragraph on onboarding of customers by financing companies.
          FC-1.1.5B01/2021Added a new Paragraph on enhanced due diligence for high risk profiles.
          FC-3.1.501/2021Added a new Paragraph on rejecting payment transactions.
          FC-6.1.6A01/2021Added a new Paragraph on requirements to hire new employees.
          FC-6.1.6A07/2021Amended Paragraph on requirements to hire new employees.
          FC-A.1.401/2022Amended Paragraph to replace financial crime with money laundering and terrorism financing.
          FC-B.1.101/2022Amended Paragraph by adding reference to Section FC-C.
          FC-C01/2022New chapter on risk-based approach (RBA).
          FC-1.101/2022Amended Section to introduce additional rules for non-resident customers, amendments to customers onboarded prior to full completion of customer due diligence, digital onboarding etc.
          FC-1.201/2022Amended Section to include E-KYC and electronic documents law requirements.
          FC-1.3.201/2022Added new guidance on enhanced due diligence requirements for customers identified as having higher risk profile.
          FC-1.401/2022Amended Section to introduce detailed requirements for digital onboarding and related requirements.
          FC-1.5.201/2022Amended Paragraph on onboarding non-Bahraini PEPs using digital ID applications.
          FC-1.10.7A01/2022Added a new Paragraph on not applying simplified CDD in situations where the licensee has identified high ML/TF/PF risks.
          FC-2.1.501/2022Added a new Paragraph on including remitting agents in programmes for monitoring.
          FC-2.2.501/2022Amended Paragraph.
          FC-3.1.6 – FC-3.1.801/2022Added new Paragraphs on Originating Financial Institutions.
          FC-3.1.9 – FC-3.1.1201/2022Added new Paragraphs on Intermediary Financial Institution/Bank.
          FC-3.1.13 - FC-3.1.1501/2022New Paragraphs on Beneficiary Financial Institutions.
          FC-4.3.101/2022Amended Paragraph.
          FC-4.3.201/2022Amended Paragraph.
          FC-4.3.501/2022Amended Paragraph.
          FC-4.3.601/2022Deleted Paragraph.
          FC-4.3.701/2022Deleted Paragraph.
          FC-6.1.6A01/2022Deleted Paragraph.
          FC-C.2.301/2023Minor amendment to Paragraph.
          FC-8.2.4(c)01/2023Added a new Sub-paragraph on reporting any frozen assets or actions taken.
          FC-1.1.5A10/2023Deleted Paragraph.
          FC-1.1.13A10/2023Amended Sub-Paragraph on the enhanced diligence for the non-resident accounts.
          FC-1.1.13E10/2023Deleted Paragraph.
          FC-1.1.13I10/2023Deleted Paragraph.
          FC-1.1.1410/2023Added a new Paragraph on CDD and Customer onboarding requirements.
          FC-1.1110/2023Added a new Section on reliance on third parties for customer due diligence.
          FC-1.2.101/2024Amended Paragraph on customer due diligence.

      • Superseded Requirements

        • FC-A.2.3

          Prior to the introduction of this Module, the CBB (BMA then) had issued various regulatory instruments containing requirements covering different aspects of financial crime. These requirements were consolidated and updated into a comprehensive financial crime regulation, issued in January 2006 to all non-bank and non-insurance licensees. In turn, this new consolidated regulation was transposed, with no major changes, into the initial version of this Module. This Regulation and other instruments listed below replaced by this Module are listed below:

          Document Ref. Date of Issue Module Ref. Document Subject
          BC/17/97 10 Nov 1997 FC B-1 Money Laundering
          OG/308/89 14 Oct 1989 FC B-1 Money Laundering
          EDBC/6/01 14 Oct 2001 FC 1, FC 4 – FC
          7           		Re: Money Laundering Regulation
          BC/1/02 27 Jan 2002 FC 3 FATF Special Recommendations on Terrorism Financing
          BC/3/00 5 Mar 2000 FC 1.5 Re: Accounts for Charity Organisations
          EDFIS/136/2005 19 June 2005   New draft Financial Crime Regulation and Guidance
          FIS/C/001/2006 2 Jan 2006 FC-A to FC-10 New Financial Crime Regulation.
                 
          October 2010