• FC-B FC-B Scope of Application

    • FC-B.1 FC-B.1 Scope of Application

      • FC-B.1.1

        This Module applies to all specialised licensees including branches of licensees incorporated outside of Bahrain, and Bahrain-incorporated subsidiaries of overseas groups. Certain parts of this Module may not be relevant to some licensees' business. Some transactions may not involve the opening of account relationships, however whenever a transaction takes place with another party or the licensee acts as an introducer or intermediary in a transaction or business relationship, then this Module becomes effective. Representative office licensees, administrators and ancillary services providers, except ancillary service providers carrying out the activities of payment service provider, crowdfunding platform operator and payment initiation service provider, are exempted from: FC-C, FC-2, FC-3, FC-4 and FC-6 because of the limited nature of their business; however, for these licensees, the Chief Executive Officer/General Manager of the licensee is responsible to comply with the remaining Chapters of Module FC. The scope provided for simplified customer due diligence requirements – as set out in Section FC-1.10 – will reduce the burden of customer due diligence for a number of specialised licensees.

        Amended: January 2022
        Amended: October 2019
        Amended: October 2012
        Amended: July 2011
        October 2010

      • FC-B.1.2

        The requirements of this Module are in addition to and supplement Decree Law No. (4) of 2001 with respect to the prevention and prohibition of the laundering of money; this Law was subsequently updated, with the issuance of Decree Law No. 54 of 2006 with respect to amending certain provisions of Decree No. 4 of 2001 (collectively, 'the AML Law'). The AML Law imposes obligations on persons generally in relation to the prevention of money laundering and the combating of the financing of terrorism, to all persons resident in Bahrain. All specialised licensees are therefore under the statutory obligations of that Law, in addition to the more specific requirements contained in this Module. Nothing in this Module is intended to restrict the application of the AML Law (a copy of which is contained in Part B of Volume 5 (Specialised licensees), under 'Supplementary Information'). Also included in Part B is a copy of Decree Law No. 58 of 2006 with respect to the protection of society from terrorism activities ('the anti-terrorism law).

        October 2010

    • FC-B.2 FC-B.2 Overseas Subsidiaries and Branches

      • FC-B.2.1

        Licensees must apply the requirements in this Module to all their branches and subsidiaries operating both in the Kingdom of Bahrain and in foreign jurisdictions. Where local standards differ, the higher standard must be followed. Licensees must pay particular attention to procedures in branches or subsidiaries in countries that do not or insufficiently apply the FATF Recommendations and Special Recommendations.

        October 2010

      • FC-B.2.2

        Where another jurisdiction's laws or regulations prevent a licensee (or any of its foreign branches or subsidiaries) from applying the same standards contained in this Module or higher, the licensee must immediately inform the CBB in writing.

        October 2010

      • FC-B.2.3

        In such instances, the CBB will review alternatives with the licensee. Should the CBB and the licensee be unable to reach agreement on the satisfactory implementation of this Module in a foreign subsidiary or branch, the licensee may be required by the CBB to cease the operations of the subsidiary or branch in the foreign jurisdiction in question.

        October 2010

      • FC-B.2.4

        Financial groups (e.g. a licensee with its subsidiaries) must implement groupwide programmes against money laundering and terrorist financing, including policies and procedures for sharing information within the group for AML/CFT purposes, which must also be applicable, and appropriate to, all branches and subsidiaries of the financial group. These must include:

        (a) The development of internal policies, procedures and controls, including appropriate compliance management arrangements, and adequate screening procedures to ensure high standards when hiring employees;
        (b) An ongoing employee training programme;
        (c) An independent audit function to test the system;
        (d) Policies and procedures for sharing information required for the purposes of CDD and money laundering and terrorist financing risk management;
        (e) The provision at group-level compliance, audit, and/or AML/CFT functions of customer, account and transaction information from branches and subsidiaries when necessary for AML/CFT purposes; and
        (f) Adequate safeguards on the confidentiality and use of information exchanged.
        Added: January 2018