• FC-1 FC-1 Customer Due Diligence

    • FC-1.1 FC-1.1 General Requirements

      • Verification of Identity and Source of Funds

        • FC-1.1.1

          Licensees must establish effective systematic internal procedures for establishing and verifying the identity of their customers and the source of their funds. Such procedures must be set out in writing and approved by the licensee's senior management. They must be strictly adhered to.

          Amended: January 2020
          Added: October 2010

        • FC-1.1.2

          Licensees must implement the customer due diligence measures outlined in Chapters 1, 2 and 3 when:

          (a) [This Sub-paragraph was deleted in July 2018];
          (b) Carrying out wire transfers (of the equivalent of US$1,000 or above) (particularly relevant for money changers);
          (c) Establishing business relations with a new or existing customer;
          (d) A change to the signatory or beneficiary of an existing account or business relationship is made;
          (e) Customer documentation standards change substantially;
          (f) The licensee has doubts about the veracity or adequacy of previously obtained customer due diligence information;
          (g) A significant transaction takes place (see FC-2.2.3);
          (h) There is a material change in the way that an account is operated or in the manner in which the business relationship is conducted; or
          (i) There is a suspicion of money laundering or terrorist financing.
          Amended: January 2021
          Amended: July 2018
          October 2010

        • FC-1.1.2A

          Licensees must understand, and as appropriate, obtain information on the purpose and intended nature of the business relationship.

          Added: October 2017

        • FC-1.1.2B

          Licensees must conduct ongoing due diligence on the business relationship, including:

          (a) Scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution's knowledge of the customer, their business and risk profile, including, where necessary, the source of funds; and
          (b) Ensuring that documents, data or information collected under the CDD process is kept up-to-date and relevant, by undertaking reviews of existing records, particularly for higher risk categories of customers.
          Added: October 2017

        • FC-1.1.3

          Representative office licensees are not allowed to undertake business directly with customers. However, they may be assigned by the Head Office to contact new or existing customers on their behalf, in this case they must pay regard to (c) – (f) and (h-i) customer due diligence measures listed under FC-1.1.2 above.

          October 2010

        • FC-1.1.4

          For the purposes of this Module, "customer" includes counterparties such as financial markets counterparties, except where financial institutions are acting as principals where simplified due diligence measures may apply. These simplified measures are set out in Section FC 1.10. For the representative office licensees, 'customer' includes customers of the HO that the Representative office liaises with for general purposes. Examples might include general inquiries and inquiries regarding the accuracy of customer information.

          October 2010

        • FC-1.1.5

          The CBB's specific minimum standards to be followed with respect to verifying customer identity and source of funds are contained in Section FC-1.2 and in the Guidance Notes (See Supplementary Information, FC-7 in Part B of the Rulebook). Enhanced requirements apply under certain high-risk situations: these requirements are contained in Sections FC-1.3 to FC-1.9 inclusive. Additional requirements apply where a licensee is relying on a professional intermediary to perform certain parts of the customer due diligence process: these are detailed in Section FC-1.7. Simplified customer due diligence measures may apply in defined circumstances: these are set out in Section FC-1.10.

          October 2010

        • FC-1.1.5A

          Financing company licensees and payment service providers must not onboard natural persons resident in countries outside the GCC through digital onboarding process. Onboarding of customers resident outside Bahrain must be subject to the enhanced due diligence requirements outlined in Section FC-1.3.

          Added: January 2021

        • FC-1.1.5B

          Money changers must not register persons identified as having high-risk profiles, including those whose CPR has expired, for the purposes of the use of online channels or applications, without conducting the enhanced due diligence requirements outlined in Section FC-1.3.

          Added: January 2021

      • Verification of Third Parties

        • FC-1.1.6

          Licensees must obtain a signed statement from all new customers (or for one-off transactions above the BD6,000 threshold for moneychangers) confirming whether or not the customer is acting on their own behalf or not. This undertaking must be obtained prior to conducting any transactions with the customer concerned.

          October 2010

        • FC-1.1.7

          Where a customer is acting on behalf of a third party, the licensee must also obtain a signed statement from the third party, confirming they have given authority to the customer to act on their behalf. Where the third party is a legal person, the licensee must have sight of the original board resolution (or other applicable document) authorising the customer to act on the third party's behalf, and retain a certified copy. Representative office licensees must obtain a signed statement from all new customers confirming whether or not the customer is acting on their own behalf or not.

          October 2010

        • FC-1.1.8

          Licensees must establish and verify the identity of the customer and (where applicable) the party/parties on whose behalf the customer is acting, including the Beneficial Owner of the funds. Verification must take place in accordance with the requirements specified in this Chapter.

          October 2010

        • FC-1.1.9

          Where financial services are provided to a minor or other person lacking full legal capacity, the normal identification procedures as set out in this Chapter must be followed. In the case of minors, licensees must additionally verify the identity of the parent(s) or legal guardian(s). Where a third party on behalf of a person lacking full legal capacity wishes to open business relations, the licensee must establish the identity of that third party as well as the person conducting the business.

          October 2010

      • Anonymous and Nominee Accounts

        • FC-1.1.10

          Licensees must not establish or keep anonymous accounts or accounts in fictitious names. Where licensees maintain a nominee account, which is controlled by or held for the benefit of another person, the identity of that person must be disclosed to the licensee and verified by it in accordance with the requirements specified in this Chapter.

          October 2010

      • Timing of Verification

        • FC-1.1.11

          Licensees must not commence a business relationship or undertake an occasional transaction (above the threshold) with a customer before completion of the relevant customer due diligence measures specified in Chapters 1, 2 and 3. However, verification may be completed after receipt of funds in the case of non face-to-face business, or the subsequent submission of CDD documents by the customer after initial face-to face contact, providing that no disbursement of funds takes place until after the requirements of this Chapter have been fully met.

          October 2010

      • Incomplete Customer Due Diligence

        • FC-1.1.12

          Where a licensee is unable to comply with the requirements specified in Chapters 1, 2 and 3, it must consider whether to terminate the relationship or not proceed with the transaction. If it proceeds with the transaction (to avoid tipping off the customer), it should additionally consider whether it should file a suspicious transaction report.

          October 2010

        • FC-1.1.13

          See also Chapter FC-5, which covers the filing of suspicious transaction reports.

          October 2010

    • FC-1.2 FC-1.2 Face-to-face Business

      • Natural Persons

        • FC-1.2.1

          If the customer is a natural person, licensees must obtain and record the following information (in hard copy or electronic form), before providing financial services as described in Paragraph FC-1.1.2:

          (a) Full legal name and any other names used;
          (b) Full permanent address (i.e. the residential address of the customer; a post office box is insufficient);
          (c) Date and place of birth;
          (d) Nationality;
          (e) Passport number (if the customer is a passport holder);
          (f) CPR or residence permit number (for residents of Bahrain or GCC states);
          (g) Telephone/fax number and email address (where applicable);
          (h) Occupation or public position held (where applicable);
          (i) Employer's name and address (if self-employed, the nature of the self-employment);
          (j) Type of account, and nature and volume of anticipated business dealings with the licensee;
          (k) Signature of the customer(s);
          (l) Source of funds; and
          (m) Reason for opening the account.
          Amended: January 2020
          Added: October 2010

        • FC-1.2.2

          See the Guidance Notes (filed under Supplementary Information in Part B of Volume 5) for further information on source of funds (FC-1.2.1 (1)) and CDD requirements for Bahrain residents (FC-1.2.1 (c) & (f)).

          October 2010

        • FC-1.2.3

          Licensees must verify the information in Paragraph FC-1.2.1 (a) to (f), by the following methods below; at least one of the copies of the identification documents mentioned in (a) and (b) below must include a clear photograph of the customer:

          (a) Confirmation of the date of birth and legal name, by taking a copy of a current valid official original identification document (e.g. birth certificate, passport, CPR or residence permit number);
          (b) Confirmation of the permanent residential address by taking a copy of a recent utility bill, bank statement or similar statement from another licensee or financial institution, or some form of official correspondence or official documentation card, such as CPR, from a public/governmental authority, or a tenancy agreement or record of home visit by an official of the licensee (see also Guidance Notes under Part B Supplementary Information Appendix FC-(v); and
          (c) Where appropriate, direct contact with the customer by phone, letter or email to confirm relevant information, such as residential address information.
          Amended: January 2013
          Amended: April 2012
          October 2010

        • FC-1.2.4

          Any document copied for the purpose of identification verification must be an original. An authorised official of the licensee must certify the copy, by writing on it the words 'original sighted', together with the date and his signature. Equivalent measures must be taken for electronic copies.

          October 2010

        • FC-1.2.5

          Identity documents which are not obtained by an authorised official of the licensee in original form (e.g. due to a customer sending a copy by post following an initial meeting) must instead be certified (as per FC-1.2.4) by one of the following from a GCC or FATF member state:

          (a) A lawyer;
          (b) A notary;
          (c) A chartered/certified accountant;
          (d) An official of a government ministry;
          (e) An official of an embassy or consulate; or
          (f) An official of another licensed financial institution or of a licensed associate company of the licensee.
          October 2010

        • FC-1.2.6

          The individual making the certification under FC-1.2.5 must give clear contact details (e.g. by attaching a business card or company stamp). The licensee must verify the identity of the person providing the certification through checking membership of a professional organisation (for lawyers or accountants), or through checking against databases/websites, or by direct phone or email contact.

          October 2010

      • Legal Entities or Legal Arrangements (such as trusts)

        • FC-1.2.7

          If the customer is a legal entity or a legal arrangement such as a trust, the licensee must obtain and record the following information from original identification documents, databases or websites, in hard copy or electronic form, identify the customer and to take reasonable measures to verify its identity, legal existence and structure:

          (a) The entity's full name and other trading names used;
          (b) Registration number (or equivalent);
          (c) Legal form and proof of existence;
          (d) Registered address and trading address (where applicable);
          (e) Type of business activity;
          (f) Date and place of incorporation or establishment;
          (g) Telephone, fax number and email address;
          (h) Regulatory body or listing body (for regulated activities such as financial services and listed companies);
          (hh) The names of the relevant persons having a senior management position in the legal entity or legal arrangement;
          (i) Name of external auditor (where applicable);
          (j) Type of account, and nature and volume of anticipated business dealings with the licensee; and
          (k) Source of funds.
          Amended: October 2017
          October 2010

        • FC-1.2.8

          The information provided under Paragraph FC-1.2.7 must be verified by obtaining certified copies of the following documents, as applicable (depending on the legal form of the entity):

          (a) Certificate of incorporation and/or certificate of commercial registration or trust deed;
          (b) Memorandum of association;
          (c) Articles of association;
          (d) Partnership agreement;
          (e) Board resolution seeking financial services (only necessary in the case of private or unlisted companies);
          (f) Identification documentation of the authorised signatories of the account (certification not necessary for companies listed in a GCC/FATF state);
          (g) Copy of the latest financial report and accounts, audited where possible (audited copies do not need to be certified); and
          (h) List of persons authorised to do business on behalf of the company and in the case of the opening of an account, a board resolution (or other applicable document) authorising the named persons to operate the account (resolution only necessary for private or unlisted companies).
          Amended: July 2016
          October 2010

        • FC-1.2.8A

          For customers that are legal persons, Licensees must identify and take reasonable measures to verify the identity of beneficial owners through the following information:

          (a) The identity of the natural person(s) who ultimately have a controlling ownership interest in a legal person, and
          (b) To the extent that there is doubt under (a) as to whether the person(s) with the controlling ownership interest is the beneficial owner(s), or where no natural person exerts control of the legal person or arrangement through other means; and
          (c) Where no natural person is identified under (a) or (b) above, the identity of the relevant natural person who holds the position of senior managing official.
          Added: October 2017

        • FC-1.2.9

          Documents obtained to satisfy the requirements in Paragraph FC-1.2.8 above must be certified in the manner specified in Paragraphs FC-1.2.4 to FC-1.2.6.

          October 2010

        • FC-1.2.9A

          For the purpose of Paragraph FC-1.2.8(a), the requirement to obtain a certified copy of the commercial registration, may be satisfied by obtaining a commercial registration abstract printed directly from the Ministry of Industry, Commerce and Tourism's website, through "SIJILAT Commercial Registration Portal".

          Added: January 2017

        • FC-1.2.10

          The documentary requirements in Paragraph FC-1.2.8 above do not apply in the case of FATF/GCC listed companies: see Section FC-1.10 below. Also, the documents listed in Paragraph FC-1.2.8 above are not exhaustive: for customers from overseas jurisdictions, documents of an equivalent nature may be produced as satisfactory evidence of a customer's identity.

          October 2010

        • FC-1.2.11

          Licensees must also obtain and document the following due diligence information. These due diligence requirements must be incorporated in the licensee's new business procedures:

          (a) Enquire as to the structure of the legal entity or trust sufficient to determine and verify the identity of the ultimate beneficial owner of the funds, the ultimate provider of funds (if different), and the ultimate controller of the funds (if different);
          (b) Ascertain whether the legal entity has been or is in the process of being wound up, dissolved, struck off or terminated;
          (c) Obtain the names, country of residence and nationality of directors or partners (only necessary for private or unlisted companies);
          (d) Require, through new customer documentation or other transparent means, updates on significant changes to corporate ownership and/or legal structure;
          (e) Obtain and verify the identity of shareholders holding 20% or more of the issued capital (where applicable). The requirement to verify the identity of these shareholders does not apply in the case of FATF/GCC listed companies;
          (f) In the case of trusts or similar arrangements (excluding employee benefit trusts and occupational savings schemes), establish the identity of the settlor(s), trustee(s), and beneficiaries (including making such reasonable enquiries as to ascertain the identity of any other potential beneficiary, in addition to the named beneficiaries of the trust); and
          (g) Where a licensee has reasonable grounds for questioning the authenticity of the information supplied by a customer, conduct additional due diligence to confirm the above information.
          Amended: April 2013
          October 2010

        • FC-1.2.11A

          In the case of employee benefit trusts and occupational savings schemes, the licensee must establish the identity of the settlor and trustee as required in FC-1.2.11(f), but may rely upon the settlor to maintain the identity information of the beneficiaries, subject to written confirmation from the settlor that such information has been collected.

          Added: April 2013

        • FC-1.2.12

          For the purposes of Paragraph FC-1.2.11, acceptable means of undertaking such due diligence might include taking bank references; visiting or contacting the company by telephone; undertaking a company search or other commercial enquiries; accessing public and private databases (such as stock exchange lists); making enquiries through a business information service or credit bureau; confirming a company's status with an appropriate legal or accounting firm; or undertaking other enquiries that are commercially reasonable.

          October 2010

    • FC-1.3 FC-1.3 Enhanced Customer Due Diligence: General Requirements

      • FC-1.3.1

        Enhanced customer due diligence must be performed on those customers identified as having a higher risk profile, and additional inquiries made or information obtained in respect of those customers.

        October 2010

      • FC-1.3.2

        The additional information referred to in Paragraph FC-1.3.1 might include documents (either in hard copy or electronic format) relating to the following:

        (a) Evidence of a person's permanent address through the use of a credit reference agency search or through independent verification by home visit;
        (b) A personal reference (e.g. by an existing customer of the licensee);
        (c) Another licensed entity's reference and contact with the concerned licensee regarding the customer;
        (d) Documentation outlining the customer's source of wealth;
        (e) Documentation outlining the customer's source of income; and
        (f) Independent verification of employment, or public position held.
        October 2010

      • FC-1.3.3

        In addition to the general rule contained in Paragraph FC-1.3.1 above, special care is required in the circumstances specified in Sections FC-1.4 to FC-1.9 inclusive.

        October 2010

    • FC-1.4 FC-1.4 Enhanced Customer Due Diligence: Non face-to-face Business and New Technologies

      • FC-1.4.1

        Licensees must establish specific procedures for verifying customer identity where no face-to-face contact takes place.

        October 2010

      • FC-1.4.2

        Where no face-to-face contact takes place, licensees must take additional measures (to those specified in Section FC-1.2), in order to mitigate the potentially higher risk associated with such business. In particular, licensees must take measures:

        (a) To ensure that the customer is the person they claim to be; and
        (b) To ensure that the address provided is genuinely the customer's.
        October 2010

      • FC-1.4.3

        There are a number of checks that can provide a licensee with a reasonable degree of assurance as to the authenticity of the applicant. They include:

        (a) Telephone contact with the applicant on an independently verified home or business number;
        (b) With the customer's consent, contacting an employer to confirm employment, via phone through a listed number or in writing; and
        (c) Salary details appearing on recent bank statements.
        October 2010

      • FC-1.4.4

        Financial services provided via post, telephone or internet pose greater challenges for customer identification and AML/CFT purposes. Licensees must establish procedures to prevent the misuse of technological developments in money laundering or terrorist financing schemes. Licensees must also ensure that they comply with any e-commerce laws and/or CBB Modules issued from time to time.

        October 2010

    • FC-1.5 FC-1.5 Enhanced Customer Due Diligence: Politically Exposed Persons (“PEPs”)

      • FC-1.5.1

        Licensees must have appropriate risk management systems to determine whether a customer is a Politically Exposed Person ('PEP'), both at the time of establishing business relations and thereafter on a periodic basis. Licensees must utilise publicly available databases and information to establish whether a customer is a PEP.

        October 2010

      • FC-1.5.2

        Licensees must establish a client acceptance policy with regard to PEPs, taking into account the reputational and other risks involved. Senior management approval must be obtained before a PEP is accepted as a customer.

        October 2010

      • FC-1.5.3

        Where an existing customer is a PEP, or subsequently becomes a PEP, enhanced monitoring and customer due diligence measures must include:

        (a) Analysis of complex financial structures, including trusts, foundations or international business corporations;
        (b) A written record in the customer file to establish that reasonable measures have been taken to establish both the source of wealth and the source of funds;
        (c) Development of a profile of anticipated customer activity, to be used in on-going monitoring;
        (d) Approval of senior management for allowing the customer relationship to continue; and
        (e) Ongoing account monitoring of the PEP's account by senior management (such as the MLRO).
        October 2010

      • FC-1.5.4

        [This Paragraph was deleted in July 2016 as the definition is included under Part B in the Glossary.]

        Deleted: July 2016
        October 2010

    • FC-1.6 FC-1.6 Enhanced Due Diligence: Charities, Clubs and Other Societies

      • FC-1.6.1

        Financial services must not be provided to charitable funds and religious, sporting, social, cooperative and professional societies, before an original certificate authenticated by the relevant Ministry confirming the identities of those purporting to act on their behalf (and authorising them to obtain the said service) has been obtained. Money changers are allowed to conduct business with charities without a certificate where payment is made by a cheque drawn on a bank licensed in Bahrain.

        Amended: January 2021
        October 2010

      • FC-1.6.2

        Charities should be subject to enhanced transaction monitoring. Money changers should develop a profile of anticipated activity (in terms of payee countries and recipient organisations in particular).

        Amended: January 2021
        October 2010

      • FC-1.6.3

        Money changers must provide a monthly report of all payments and transfers of BD3,000 (or equivalent in foreign currencies) and above performed on behalf of charities registered in Bahrain. The report must be submitted to the CBB's Compliance Directorate (see Section FC-5.3 for contact address), giving details of the amount transferred, name of charity, number and beneficiary name account and bank details. Licensees must ensure that such transfers are in accordance with the spending plans of the charity (in terms of amount, recipient and country).

        Amended: January 2021
        October 2010

      • FC-1.6.4

        Article 20 of Decree Law No. 21 of 1989 (issuing the Law of Social and Cultural Societies and Clubs and Private Organizations Operating in the Area of Youth and Sport and Private Institutions) provides that money changer licensees and payment service providers must not accept or process any incoming or outgoing fund transfers in any form (wire transfer, drafts, etc.) from or to any foreign person or foreign association on behalf of societies and clubs licensed by the Ministry of Youth and Sport Affairs without prior written approval of the Ministry.

        Amended: October 2019
        October 2010

      • FC-1.6.5

        The receipt of a Ministry letter mentioned in Paragraph FC-1.6.4 above does not exempt the concerned money changer from conducting normal CDD measures as outlined in other parts of this Module.

        Amended: January 2021
        October 2010

    • FC-1.7 FC-1.7 Introduced Business from Professional Intermediaries

      • FC-1.7.1

        A licensee may only accept customers introduced to it by other financial institutions or intermediaries, if it has satisfied itself that the introducer concerned is subject to FATF-equivalent measures and customer due diligence measures. Where licensees delegate part of the customer due diligence measures to an introducer, the responsibility for meeting the requirements of Chapters 1 and 2 remains with the licensee, not the introducer.

        Amended: January 2018
        October 2010

      • FC-1.7.2

        Licensees may only accept introduced business if all of the following conditions are satisfied:

        (a) The customer due diligence measures applied by the introducer are consistent with those required by the FATF 40 + 9 Recommendations;
        (b) A formal agreement is in place defining the respective roles of the licensee and the introducer in relation to customer due diligence measures. The agreement must specify that the customer due diligence measures of the introducer will comply with the FATF 40 + 9 Recommendations;
        (c) The introducer is able to provide all relevant data pertaining to the customer's identity, the identity of the customer and beneficial owner of the funds and, where applicable, the party/parties on whose behalf the customer is acting; also, the introducer has confirmed that the licensee will be allowed to verify the customer due diligence measures undertaken by the introducer at any stage; and
        (d) Written confirmation is provided by the introducer confirming that all customer due diligence measures required by the FATF 40 + 9 Recommendations have been followed and the customer's identity established and verified. In addition, the confirmation must state that any identification documents or other customer due diligence material can be accessed by the licensee and that these documents will be kept for at least five years after the business relationship has ended.
        October 2010

      • FC-1.7.3

        The licensee must perform periodic reviews ensuring that any introducer on which it relies is in compliance with the FATF 40 + 9 Recommendations. Where the introducer is resident in another jurisdiction, the licensee must also perform periodic reviews to verify whether the jurisdiction is in compliance with the FATF 40 + 9 Recommendations.

        October 2010

      • FC-1.7.4

        Should the licensee not be satisfied that the introducer is in compliance with the requirements of the FATF 40 + 9 Recommendations, the licensee must conduct its own customer due diligence on introduced business, or not accept further introductions, or discontinue the business relationship with the introducer.

        October 2010

    • FC-1.8 FC-1.8 Shell Banks

      • FC-1.8.1

        Licensees must not establish business relations with banks, which have no physical presence or "mind and management" in the jurisdiction in which they are licensed and which are unaffiliated with a regulated financial group ("shell banks"). Licensees must not knowingly establish relations with financial institutions that have relations with shell banks.

        October 2010

      • FC-1.8.2

        Licensees must make a suspicious transaction report to the Financial Intelligence Directorate and the Compliance Directorate if they are approached by a shell bank or an institution they suspect of being a shell bank.

        Amended: October 2019
        October 2010

    • FC-1.9 FC-1.9 Enhanced Due Diligence: Cross Border Cash Transactions by Courier

      • FC-1.9.1

        The cross-border movement of cash funds warrants special attention under the FATF 40 Recommendations where transactions are large in value (Recommendation 6), in addition to the general requirement under Recommendation 19 to verify monitor, declare and keep records of all cross-border transfers of cash. Cash shipments are therefore subject to inspection and investigation procedures by the Customs Directorate of the Kingdom of Bahrain. There are also certain specific legal measures mentioned below which are relevant to cross-border cash shipments. Under Article 4 of Decree Law No. 4 of 2001, licensees of the CBB are required to comply with the CBB's Rules and Regulations concerning the prevention and prohibition of money laundering, which include regulations concerning the cross-border movement of cash. Also, licensees' attention is drawn to the disclosure provisions of Decree Law No 54 of 2006 and Ministerial Order No 6 of 2008 with respect to cross-border transportation of funds (see Part B of the Rulebook for Decree Law No 54). Licensees are also reminded of the rules of the unified customs arrangements of the Gulf Cooperation Council as laid out in Decree Law No 10 of 2002. With respect to the above Law No. 4 of 2001 and the concerned parts of other legislation mentioned above, all money changers must implement the enhanced measures below in respect of all cash received from foreign countries or sold/transferred to foreign countries.

        Amended: January 2021
        October 2010

      • FC-1.9.2

        Cash coming into Bahrain via courier (whether a representative of a Bahrain money changer or a foreign institution) must be accompanied by original documentation stating the source of funds and identity of the originator of the funds. Furthermore, the documentation must state the full name and address of the beneficiary of the funds. This documentation must be signed in original by (a representative) of the originator of the cash. This means that where a courier is importing cash via any customs point of entry (e.g. via the Causeway or the Airport), the aforementioned courier must carry original documentation which clearly shows the source of funds and identity of the originator of the funds and the intended beneficiaries' names and address.

        Amended: January 2021
        Amended: July 2018
        October 2010

      • FC-1.9.3

        In the case of incoming cash, the courier must carry original documentation signed by the originator stating whether the cash shipment is for local use or for onward transmission.

        October 2010

      • FC-1.9.4

        If the imported cash is for onward transmission, the original documentation must provide the full name and address of the final beneficiaries, as well as the local recipient (e.g. the money changer).

        Amended: January 2021
        October 2010

      • FC-1.9.5

        Failure to provide complete and detailed original signed documentation by the originator of the funds referred to in Paragraph FC-1.9.2 may cause the cash shipment to be blocked, whereupon the blocking costs will be borne by the concerned money changer in Bahrain. Licensees are also reminded of the penalties and enforcement measures in Law No. 4 of 2001, Decree Law No. 54 of 2006, Ministerial Order No. 7 of 2001 issued by the Minister of Finance and National Economy, the rules of the unified customs arrangements of the Gulf Cooperation Council as laid out in Decree Law No. 10 of 2002 and the CBB Law No. 64 of 2006.

        Amended: January 2021
        October 2010

    • FC-1.10 FC-1.10 Simplified Customer Due Diligence

      • FC-1.10.1

        Licensees may apply simplified customer due diligence measures, as described in Paragraphs FC-1.10.2 to FC-1.10.7, if:

        (a) [This Subparagraph was deleted in July 2018];
        (b) The transaction is a wire transfer below the equivalent of US$1000;
        (c) The customer is a company listed on a GCC or FATF member state stock exchange with equivalent disclosure standards to those of a licensed exchange;
        (d) The customer is a financial institution whose entire operations are subject to AML/CFT requirements consistent with the FATF Recommendations / Special Recommendations and it is supervised by a financial services supervisor in a FATF or GCC member state for compliance with those requirements;
        (e) The customer is a financial institution which is a subsidiary of a financial institution located in a FATF or GCC member state, and the AML/CFT requirements applied to its parent also apply to the subsidiary;
        (f) The customer is the Central Bank of Bahrain ('CBB'), a licensed exchange or a licensee of the CBB; or
        (g) The customer is a Ministry of a Gulf Cooperation Council ('GCC') or Financial Action Task Force ('FATF') member state government, a company in which a GCC government is a majority shareholder, or a company established by decree in the GCC.
        Amended: January 2019
        Amended: July 2018
        Amended: January 2018
        Amended: April 2013
        October 2010

      • FC-1.10.2

        For customers falling under categories (c) to (g) specified in Paragraph FC-1.10.1, the information required under Paragraph FC-1.2.1 (for natural persons) or FC-1.2.7 (for legal entities) must be obtained. However, the verification, certification and due diligence requirements in Paragraphs FC-1.2.3, FC-1.2.5, FC-1.2.8, FC-1.2.9 and FC-1.2.11, may be dispensed with.

        October 2010

      • FC-1.10.3

        [This Paragraph was deleted in July 2018].

        Deleted: July 2018
        October 2010

      • FC-1.10.4

        Licensees wishing to apply simplified due diligence measures as allowed for under categories (c) to (g) of Paragraph FC-1.10.1 must retain documentary evidence supporting their categorisation of the customer.

        October 2010

      • FC-1.10.5

        Examples of such documentary evidence may include a printout from a regulator's website, confirming the licensed status of an institution, and internal papers attesting to a review of the AML/CFT measures applied in a jurisdiction.

        October 2010

      • FC-1.10.6

        Licensees may use authenticated SWIFT messages as a basis for confirmation of the identity of a financial institution under Subparagraphs FC-1.10.1 (d) and (e) where it is dealing as principal. For customers coming under Subparagraphs FC-1.10.1 (d) and (e), licensees must also obtain and retain a written statement from the parent institution of the subsidiary concerned, confirming that the subsidiary is subject to the same AML/CFT measures as its parent.

        October 2010

      • FC-1.10.7

        Simplified customer due diligence measures must not be applied where a licensee knows, suspects, or has reason to suspect, that the applicant is engaged in money laundering or terrorism financing or that the transaction is carried out on behalf of another person engaged in money laundering or terrorism financing.

        October 2010

      • FC-1.10.8

        [This Paragraph was deleted in July 2018].

        Deleted: July 2018
        October 2010