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  • AU-A AU-A Introduction

    • AU-A.1 AU-A.1 Purpose

      • Executive Summary

        • AU-A.1.1

          The Authorisation Module sets out the Central Bank of Bahrain's ('CBB') approach to licensing providers of regulated money changer services in the Kingdom of Bahrain. It also sets out CBB requirements for approving persons undertaking key functions in those providers.

          Amended: January 2011
          October 2010

        • AU-A.1.2

          Persons undertaking certain functions in relation to licensees require prior CBB approval. These functions (called 'controlled functions') include Directors and members of senior management. The controlled functions regime supplements the licensing regime by ensuring that key persons involved in the running of licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

          October 2010

      • Retaining Authorised Status

        • AU-A.1.3

          The requirements set out in Chapters AU-2 and AU-3 represent the minimum conditions that have to be met in each case, both at the point of authorisation and on an on-going basis thereafter, in order for authorised status to be retained.

          October 2010

      • Legal Basis

        • AU-A.1.4

          This Module contains the CBB's Directive, Regulations and Resolutions (as amended from time to time) regarding authorisation under Volume 5 (Specialised Licensees) of the CBB Rulebook. It is applicable to all licensees (as well as to approved persons), and is issued under the powers available to the CBB under Articles 37 to 42, 44 to 48 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). Requirements regarding regulated money changer services as per Article 39 (see Paragraph AU-1.1.8), licensing conditions as per Article 44 (see Chapter AU-2) and licensing fees as per Article 180 (see Chapter AU-5) are also included in Regulations and Resolutions and included in this Module. The Module also contains requirements governing the conditions of granting a license for the provision of regulated services as prescribed under Resolution No.(43) of 2011 and issued under the powers available to the CBB under Article 44(c). The Module contains requirements under Resolution No.(16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law. Requirements regarding Money Changer Licensees are also included in the Regulation Organising Money Changing Business, issued in 1994 and included in this Module. This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015.

          Amended: July 2015
          Amended: January 2013
          Amended: April 2012
          Amended: January 2011
          October 2010

        • AU-A.1.5

          Approved Persons are individuals holding certain specified positions at CBB licensees; they must be approved by the CBB prior to taking on those positions and must demonstrate that they are fit and proper. The list of positions subject to the CBB's Approved Persons regime vary according to the CBB license Category, but generally cover directors and senior management, as well as certain other positions. Approved Persons requirements are specified in the relevant Rulebook Volume for the license Category in question.

          October 2010

        • AU-A.1.6

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

          October 2010

    • AU-A.2 AU-A.2 Module History

      • Evolution of Module

        • AU-A.2.1

          This Module was first issued in October 2010. All subsequent changes to this Module are annotated with the end-calendar quarter date in which the change was made. UG-3 provides further details on Rulebook maintenance and version control

        • AU-A.2.2

          A list of recent changes made to this Module is provided below:

          Module Ref. Change Date Description of Changes
          AU-A.1.4 01/2011 Clarified legal basis.
          AU-4.1.4 01/2011 Removed the requirement for a letter of comfort to be provided with an application for license.
          AU-4.1.15 01/2011 Corrected cross reference.
          AU-4.1.4(a) 04/2011 Added cross reference.
          AU-4.2 04/2011 Clarified Rules for authorisation of a branch and added Rules for authorisation of a subsidiary.
          AU-4.3.7A 07/2011 Added a Rule dealing with notification to CBB when an approved person ceases to hold a controlled function.
          AU-4.4.6 07/2011 Cross reference added to Rule.
          AU-A.1.4 04/2012 Legal basis updated to reflect all Articles of the CBB Law covered by this Module as well as applicable Resolutions.
          AU-4.4 04/2012 Clarified language on cancellation of a license to be in line with other Volumes of the CBB Rulebook.
          AU-1.1.8A and AU-1.1.8B 10/2012 Rule and guidance added to address the activity of wholesale export and import of various currency bank notes in physical form.
          AU-2.1.1 10/2012 Amended legal status.
          AU-A.1.4 01/2013 Updated legal basis.
          AU-1.1 01/2013 References added to requirements under Resolution No.(16) for the year 2012.
          AU-1.2.3 01/2013 Clarified approval requirements for controlled functions for Bahrain operations.
          AU-4.4.4A 01/2013 Corrected cross reference to CBB Law.
          AU-5.2 07/2013 Amended due date and collection process for annual licensee fee.
          AU-A.1.4 07/2015 Legal basis updated to reflect Resolution No (23) of 2015.
          AU-4.3 07/2015 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-4.4.6 07/2015 Clarified interim arrangements for replacement of approved person.
          AU-1.2 01/2016 Clarified general requirements for approved persons.
          AU-3 01/2016 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-4.3 01/2016 Minor amendments to be aligned with other Volumes of the Rulebook.
          AU-4.5 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License
          AU-4.1.1 04/2018 Amended Paragraph.
          AU-4.1.18 04/2018 Amended Paragraph.
          AU-4.3.2 04/2018 Amended Paragraph.
          AU-4.3.8AA 10/2018 Amended Paragraph number.
          AU-4.4.6 10/2018 Amended reference Paragraph.
          AU-4.1.1 07/2019 Amended Paragraph to remove references to hardcopy Form 1 submission to online submission.
          AU-4.1.21 10/2019 Changed from Rule to Guidance.
          AU-4.1.22 10/2019 Changed from Rule to Guidance.
          AU-4.1.23 10/2019 Changed from Rule to Guidance.
          AU-4.5.1 10/2019 Changed from Rule to Guidance.
          AU-4.3.9A 01/2021 Added a new Paragraph on compliance of approved persons with the fit and proper requirement.

      • Superseded Requirements

        • AU-A.2.3

          This Module supersedes the following provisions contained in circulars or other regulatory instruments:

          Circular / other reference Subject
          Standard Conditions and Licensing Criteria: Money Changers Scope of license and licensing conditions.
          Circular BC/309/1994 Management Personnel
          Circular BC/120/1995 Money Changers Permitted Business
          Circular BC/11/98 Appointment and suitability of Directors and senior managers ('fit and proper').
          Circular EDFIS/C/05/2007 CBB's New License Fees System
          October 2010