• UG-1 UG-1 Rulebook Status and Application

    • UG-1.1 UG-1.1 Legal Basis

      • General

        • UG-1.1.1

          Volume 5 (Specialised Licensees) of the CBB Rulebook is issued by the CBB pursuant to the Central Bank of Bahrain and Financial Institutions Law 2006 ('the CBB Law'). The CBB Law provides for two formal rulemaking instruments: Regulations (made pursuant to Article 37) and Directives (made pursuant to Article 38). Other articles in the CBB Law also prescribe various specific requirements (for example, requirements relating to licensing (Articles 44 to 49), or the notification and approval of controllers of licensees (Articles 52 to 56)).

          October 2010

        • UG-1.1.2

          The Purpose Section of each Module specifies in all cases the rulemaking instrument(s) used to issue the content of the Module in question, and the legal basis underpinning the Module's requirements.

          October 2010

      • CBB’s Rulemaking Instruments

        • UG-1.1.4

          Regulations are made pursuant to Article 37 of the CBB Law. These instruments have general application throughout the Kingdom and bind all persons ordinarily affected by Bahraini legislative measures (i.e. residents and/or Bahraini persons wherever situated).

          October 2010

        • UG-1.1.5

          Because Regulations have wide general application, they are subject to two important safeguards: (i) the CBB is under a duty to consult with interested parties and to review and consider their comments; and (ii) the finalised Regulations only become effective after they are published in the Official Gazette.

          October 2010

        • UG-1.1.6

          Directives are made pursuant to Article 38 of the CBB Law. These instruments do not have general application in the Kingdom, but are rather addressed to specific licensees (or categories of licensees) or approved persons. Directives are binding on those to whom they are addressed.

          October 2010

        • UG-1.1.7

          Unlike Regulations, there is no duty on the CBB to either consult with addressees or publicise a Directive by publishing it in the Official Gazette (save that an addressee must obviously have actual or constructive notice of a Directive). However, as a matter of general policy, the CBB also consults on Rulebook content issued by way of a Directive.

          October 2010

        • UG-1.1.8

          All of the content of the CBB Rulebook has the legal status of at least a Directive, issued pursuant to Article 38 of the CBB Law. Certain of the requirements contained in the CBB Rulebook may also have the status of a Regulation, in which case they are also separately issued pursuant to Article 37 of the CBB Law and published in the Official Gazette. Where this is the case, then the Rulebook cross-refers to the Regulation in question and specifies the requirements concerned.

          October 2010

        • UG-1.1.9

          In keeping with the nature of these regulatory instruments, Regulations are used to supplement the CBB Rulebook, either where explicitly required under the CBB Law, or where a particular requirement needs to have general applicability, in addition to being applied to licensees or approved persons.

          October 2010

    • UG-1.2 UG-1.2 Status of Provisions

      • UG-1.2.1

        The contents of the CBB Rulebook are categorised either as Rules or as Guidance. Rules have a binding effect. If a licensee breaches a Rule to which it is subject, it is liable to enforcement action by the CBB and, in certain cases, criminal proceedings by the Office of the Public Prosecutor.

        Amended: October 2012
        October 2010

      • UG-1.2.2

        Guidance is not binding: rather, it is material that helps inform a particular Rule or set of Rules, or provides other general information. Where relevant, compliance with Guidance will generally lead the CBB to assess that the rule(s) to which the Guidance relates has been complied with. Conversely, failure to comply with Guidance will generally be viewed by the CBB as tending to suggest breach of a Rule.

        Amended: October 2012
        October 2010

      • UG-1.2.3

        The status of each Paragraph within the Rulebook is identified by its text format, as follows:

        •   Rules are in bold, font size 12. The Paragraph reference number is also highlighted in a coloured box.
        •   Guidance is in normal type, font size 11.
        October 2010

      • UG-1.2.4

        Where there are differences of interpretation over the meaning of a Rule or Guidance, the CBB reserves the right to apply its own interpretation.

        October 2010

      • UG-1.2.5

        Rule UG-1.2.4 does not prejudice the rights of an authorised person to make a judicial appeal, should it believe that the CBB is acting unreasonably or beyond its legal powers.

        October 2010

      • UG-1.2.6

        All Rulebook content has the formal status of at least a Directive. Some Rulebook content may also have the status of Regulations. Rulebook content that is categorised as a Rule is therefore legally mandatory and must be complied with by those to whom the content is addressed.

        October 2010

      • UG-1.2.7

        [This Paragraph was deleted in October 2012].

        Deleted: October 2012
        October 2010

      • UG-1.2.8

        The CBB's enforcement powers and processes are set out in Module EN.

        October 2010

    • UG-1.3 UG-1.3 Application

      • UG-1.3.1

        Volume 5 of the CBB Rulebook for the most part applies only to specialised licensees, and to individuals undertaking key functions in those licensees (so-called 'approved persons'). Most of the content of Volume 5 only has the formal status of a Directive.

        October 2010

      • UG-1.3.2

        A few Rules and Guidance have general applicability (and thus also have the formal status of a Regulation): for instance, no one may carry on specialised activities within or from Bahrain without the appropriate license, and controllers of specialised licensees are also subject to various requirements.

        October 2010

      • UG-1.3.3

        Each Module in Volume 5 (except those listed under the 'Introduction' and 'Sector Guides' headings) contains a Scope of Application Chapter, setting out which Rules and Guidance apply to which particular type of specialised licensee or person, for the Module concerned. In addition, each Rule (or Section containing a series of Rules) is drafted such that its application is clearly highlighted for the user. Finally, each Module, in its Purpose Section, specifies in all cases the rulemaking instrument(s) used to issue the content of the Module in question, and the legal basis underpinning the Module's requirements.

        October 2010

      • UG-1.3.4

        All references in this Module to 'he' or 'his' shall, unless the context otherwise requires, be construed as also being references to 'she' and 'her'.

        Added: October 2016

    • UG-1.4 UG-1.4 Effective Date

      • UG-1.4.1

        Volume 5 (Specialised Licensees) of the CBB Rulebook was first issued in October 2010. Its contents have immediate effect, subject to any specific transition arrangements that may be specified.

        October 2010