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  • AU-4.2 AU-4.2 Authorisation of a Branch or Subsidiary

    • AU-4.2.1

      Licensees may open branches in the Kingdom of Bahrain after obtaining the CBB's prior written approval. Licensees are prohibited from opening branches in foreign jurisdictions but may open subsidiaries in such jurisdictions with the CBB prior approval.

      Amended: April 2011
      October 2010

    • Authorisation of a Branch

      • AU-4.2.2

        Unless otherwise directed by the CBB, the following documents must be provided to the CBB in support of an application to open a branch:

        (a) A business plan explaining:
        1) The reasons for applying for a branch, including the applicant's strategy and market objectives; and
        2) A minimum of three-year financial projection, with all assumptions clearly outlined, demonstrating that the branch will be able to meet all liabilities and obligations;
        (b) The location of the proposed branch, including the full address;
        (c) A confirmation that the branch will comply with the minimum security measures for money changer licensees as specified in Section GR-9.1;
        (d) Confirmation from the external auditor that the licensee's capital adequacy is sufficient to support the operation of the branch, in addition to other existing branches (if applicable), at the time of filing the request; and
        (e) Confirmation from the external auditor that additional capital requirement of BD30,000 (refer to Section CA-1.4), has been deposited in the licensee's bank account.
        Amended: April 2011
        October 2010

    • Starting Operations of a Branch

      • AU-4.2.3

        Licensees should submit to the CBB confirmation that the authorised branch has commenced operations within 6 months of the authorisation letter.

        Amended: April 2011
        October 2010

      • AU-4.2.4

        An application for authorisation of a new branch will not be considered by the CBB unless the written confirmation that the preceding branch is operational, as required in Rule AU-4.2.3 above, has been submitted.

        October 2010

    • Authorisation of a Subsidiary

      • AU-4.2.5

        Licensees wishing to establish or acquire a new subsidiary undertaking must submit to the CBB the following information as part of their request:

        (a) Proposed name of subsidiary;
        (b) Country of incorporation;
        (c) Legal structure;
        (d) Proposed issued capital;
        (e) Proposed shareholding structure;
        (f) Purpose of establishing or acquiring the subsidiary;
        (g) Draft incorporation documents of the subsidiary;
        (h) Board resolution approving the establishment or acquisition of the subsidiary; and
        (i) Any other information or documentation requested by the CBB.
        Added: April 2011

      • AU-4.2.6

        Licensees should ensure adherence with Rules contained in Chapter CA-1 and in particular with the leverage and liquidity requirements contained in Section CA-1.5 when considering the impact of a subsidiary on capital requirements.

        Added: April 2011