• Money Changer License Permitted Activities

    • AU-1.1.8

      For the purposes of Volume 5 (Specialised Licensees), regulated money changer services mean all transactions including:

      (a) The sale, purchase and exchange of foreign currencies;
      (b) Currency transfer to/from Bahrain;
      (c) Purchase and sale of travellers' cheques;
      (d) The dealing in precious metals within the allowed limits; or
      (e) Any other financial business related to Money Changers activities and approved by the CBB.
      Amended: April 2011
      October 2010

    • AU-1.1.8A

      For purposes of Subparagraph AU-1.1.8(a), the sale, purchase and exchange of foreign currencies may include the wholesale export and import of various currency bank notes in physical form, for the purpose of distribution/collection to/from the local market or for transmission to a foreign jurisdiction. Only licensees whose license specifically allows for such activity to be undertaken are permitted to engage in this activity.

      Added: October 2012

    • AU-1.1.8B

      In assessing a request from a licensee to add the activity of export/import of bank notes to its permitted activities, the CBB will consider among other factors, the following:

      (a) A satisfactory track record of not less than 5 years operating as a licensed regulated entity in the financial sector;
      (b) The licensee's financial soundness, an acceptable level of capitalisation and financial resources and its ability to meet its obligations in a timely and satisfactory manner;
      (c) The legal status and regulatory track record of the licensee including previous disciplinary measures taken against the licensee by the CBB or any other jurisdiction in which its group operates;
      (d) The maintenance of an adequate insurance coverage to cater for any risk that may arise while importing/exporting the consignment;
      (e) The application of prudent security measures when transporting the banknotes within the Kingdom of Bahrain, as required by Paragraphs GR-7.1.1 and GR-9.1.5A;
      (f) The existence of prudent documented and approved internal procedures and controls within the licensee to govern the entire import/export activity starting from the origination of the consignment to its final destination. Such procedures must observe the requirements of any other Law or relevant competent authority in this regard, whether in the Kingdom of Bahrain or the jurisdiction to/from which the banknotes are being exported/imported;
      (g) The existence of the necessary AML/CFT systems and controls in place as required by Module FC;
      (h) The quality of management and corporate governance framework and oversight over the activities of the licensee; and
      (i) The maintenance of proper books and records as required by Chapter GR-1.
      Added: October 2012

    • AU-1.1.9

      For the purposes of Volume 5 (Specialised Licensees), carrying on a regulated money changer services by way of business means:

      (a) Undertaking one or more of the activities specified in Paragraph AU-1.1.8 for commercial gain;
      (b) Holding oneself out as willing and able to engage in that activity; or
      (c) Regularly soliciting other persons to engage in transactions constituting that activity.
      October 2010

    • AU-1.1.10

      Licensees are prohibited from conducting any other financial business other than that set out in Rule AU-1.1.8 above, and permitted by the license issued to them by the CBB.

      October 2010

    • AU-1.1.11

      A person does not carry on an activity constituting regulated money changer services if it is an organisation, commercial company or travel and tourism agency accepting foreign currencies and travellers' cheques in consideration for their sales. In addition, hotels do not undertake regulated money changer services when accepting foreign currencies and travellers' cheques in consideration for their services and/or as a service to their guests.

      October 2010