BC-2 BC-2 The Business Code of Practice
BC-2.1 BC-2.1 Overarching Principles
BC-2.1.1
In the course of
regulated money changer services ,licensees must:(a) Act with due skill, care and diligence in all dealings withcustomers ;(b) Act fairly and reasonably in all dealings withcustomers ;(c) Identifycustomers ' specific requirements in relation to the services about which they are enquiring;(d) Provide sufficient information to enablecustomers to make informed decisions when purchasing services offered to them, as listed under Paragraph BC-2.5.2 of the Appendix;(e) Provide sufficient and timely documentation tocustomers to confirm that their transaction arrangements are in place and provide all necessary information about their rights and responsibilities, as listed under Paragraph BC-2.5.3 of the Appendix;(f) Maintain fair treatment ofcustomers through the lifetime of thecustomer relationships, and ensure thatcustomers are kept informed of important events;(g) Ensure complaints fromcustomers are dealt with fairly and promptly, in accordance with the Rules under Section BC-2.3;(h) Ensure that all information provided tocustomers is clear, fair and not misleading, and appropriate tocustomers ' information needs; and(i) Take appropriate measures to safeguard any money and precious metals handled on behalf ofcustomers and maintain confidentiality ofcustomer information.October 2010BC-2.2 BC-2.2 Marketing and Promotion
BC-2.2.1
Licensees must ensure that all advertising and promotional material is fair, clear and not misleading.October 2010BC-2.2.2
In ensuring that the description of the service in the promotional material is fair, clear and not misleading, the
licensee should send copies of the documentation relating to promotional schemes to the CBB at least 2 weeks prior to their launch and should, among other precautionary measures, ensure that:a) The purpose, and to the extent practicable, the content, of the information or communication are likely to be understood by the average member of the group to whom the communication is addressed;b) Key items contained in the information are given due prominence;c) The method of presentation in the information does not disguise, diminish, or obscure important risks, warnings or information; andd) The communication does not omit information that is material to ensure it is fair, clear and not misleading.October 2010BC-2.2.3
Licensees must ensure that the accuracy of all material statements of fact in promotional materials is supported by adequate evidence.October 2010BC-2.2.4
Licensees must not, in any form of communication with an individualcustomer , attempt to limit or avoid any duty or liability it may have towards the individualcustomer in relation toregulated money changing services. October 2010Content of Promotions
BC-2.2.5
Before a
licensee communicates any promotional material to acustomer or a potentialcustomer it must ensure the promotional material at the very least contains the information laid out in Paragraph BC-2.5.1 of the Appendix.BC-2.2.6
Licensees must not make use of the name of the CBB in any promotion in such a way that would indicate endorsement or approval of its services.BC-2.2.7
All documentation concerning promotional schemes must be in Arabic and English and, if relevant, any other language necessary for customers to fully understand and appreciate their terms and conditions. Such terms and conditions, including any related advertising, need to be clear, concise, truthful, unambiguous and complete so as to enable
customers to make a fully informed decision.BC-2.2.8
Customers to whom promotional schemes are directed should enjoy equal opportunity in terms of access to, and treatment within, such schemes.BC-2.2.9
No costs (including funding costs), charges or levies associated with promotional schemes should be concealed from prospective
customers .BC-2.2.10
Any raffles/lotteries etc. held as part of promotional schemes should be independently monitored (e.g. by the institution's external auditor) and adequate systems put in place to ensure fair play and impartiality.
BC-2.2.11
An appropriate system should also exist for informing participants of the results of a raffle/lottery without delay.
BC-2.2.12
Institutions should note that raffles/lotteries etc. may be subject to rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry and Commerce.
Records
BC-2.2.13
Licensees must maintain a record of all promotional materials issued by them or on their behalf, particularly where raffles/lotteries etc. are concerned.BC-2.3 BC-2.3 Complaints
BC-2.3.1
Licensees must disclose, maintain and operate effective procedures for handling complaints in a reasonable and timely manner. These procedures include:(a) Informingcustomers in writing of any out of court complaint and redress mechanism and methods for having access to it;(b) Paying compensation or other forms of redress tocustomers where thelicensee decides this is appropriate; and(c) Regularly verifying if complaints are effectively processed.October 2010BC-2.3.2
Upon receiving complaints from
customers (either orally or in writing),licensees must:(a) Acknowledge complaints promptly, within 5 business days, and providecustomers with an explanation about how the complaint will be handled and any actions required of thecustomer ;(b) Consider and handle complaints fairly and promptly, keepingcustomers informed of progress; and(c) Provide final responses tocustomers ' complaints without undue delay and within 20 business days.October 2010BC-2.3.3
In their final responses to
customers ' complaints,licensees must:(a) Accept (or partially accept) the complaint and where appropriate offer compensation or other forms of redress; or(b) Reject (or partially reject) the complaint, informingcustomers with a full explanation of thelicensee 's position.October 2010Records
BC-2.3.4
Licensees must maintain adequate records of all complaints received, and how they were dealt with, to a level of detail sufficient to demonstrate compliance with this Section and in accordance with the Rules under Section GR-1.October 2010BC-2.3.5
In recording complaints activity,
licensees should consider the types of data and reports that will enable them to demonstrate compliance with the above Rules for handling complaints, together with the overarching principles requiring fair dealings withcustomers .October 2010BC-2.4 BC-2.4 Confidentiality
BC-2.4.1
Licensees must ensure that any information obtained from theircustomers is not used or disclosed unless:(a) They have thecustomer's consent;(b) Disclosure is made in accordance with thelicensee's regulatory obligations; or(c) Thelicensee is legally obliged to disclose the information in accordance with Article 117 of the CBB Law.October 2010BC-2.4.2
Licensees must take appropriate steps to ensure the security of any information handled or held on behalf of theircustomers .October 2010BC-2.5 BC-2.5 Appendix
BC-2.5.1
The minimum information that should be contained in promotional material includes:
(a) The name of thelicensee communicating the promotional material;(b) Thelicensee's address;(c) A description of the main characteristics of the service offered;(d) Suitable warning regarding the risks of the service offered; and(e) A clear statement indicating that, if acustomer is in any doubt about the suitability of the agreement which is the subject of the promotion, he should consult thelicensee .October 2010BC-2.5.2
The minimum information that should be provided to
customers when purchasingregulated money changer services include:(a) The regulatory status of thelicensee ;(b) A statement that thelicensee is bound by the CBB's regulation and licensing conditions;(c) Thelicensee's name, address, e-mail and telephone number;(d) A statement of the services provided by thelicensee , as permitted by the CBB;(e) The total price to be paid by thecustomer to thelicensee for its services, or, where an exact price cannot be indicated, the basis for the calculation of the price enabling thecustomer to verify it;(f) A statement that clearly indicates the following:(i) Thecustomer's right to obtain copies of records relating to his business with thelicensee ;(ii) Thecustomer's record will be kept for 5 years or as otherwise required by Bahrain Law; and(g) The name and job title, address and telephone number of the person in thelicensee to whom any complaint should be addressed (in writing) by thecustomer .Amended: July 2019
October 2010BC-2.5.3
The minimum information that should be included in a transaction confirmation includes:
(a) Thelicensee's name and address;(b) Thecustomer's name or other identifier;(c) Whether the transaction was a sale or purchase;(d) The date and time of the transaction; and(e) The amount thelicensee charges in connection with the transaction, including commission charges.October 2010