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  • AU-1.2 AU-1.2 Approved Persons

    • General Requirement

      • AU-1.2.1

        Licensees must obtain the CBB's prior written approval for any person wishing to undertake a controlled function in a licensee. The approval from the CBB must be obtained prior to their appointment, subject to the variations contained in Paragraph AU-1.2.3.

        Amended: January 2016
        May 2011

      • AU-1.2.2

        Controlled functions are those functions occupied by board members and persons in executive positions and include:

        (a) Director;
        (b) Chief Executive or General Manager;
        (c) Head of function;
        (d) Compliance officer;
        (e) Money Laundering Reporting Officer (MLRO); and
        (f) Deputy Money Laundering Reporting Officer (if any).
        Amended: January 2016
        May 2011

      • AU-1.2.3

        Combination of the above controlled functions is subject to the CBB's approval. Controlled functions (b) to (f) are in relation to Bahrain operations.

        Amended: January 2013
        May 2011

    • Basis for Approval

      • AU-1.2.4

        Approval under Paragraph AU-1.2.1 is only granted by the CBB, if it is satisfied that the person is fit and proper to hold the particular position in the licensee concerned. 'Fit and proper' is determined by the CBB on a case-by-case basis. The definition of 'fit and proper' and associated guidance is provided in Sections AU-3.1 and AU-3.2 respectively.

        May 2011

    • Definitions

      • AU-1.2.5

        Director is any person who occupies the position of a Director, as defined in Article 173 of the Commercial Companies Law (Legislative Decree No. 21 of 2001).

        May 2011

      • AU-1.2.6

        The fact that a person may have 'Director' in their job title does not of itself make them a Director within the meaning of the definition noted in Paragraph AU-1.2.5. For example, a 'Director of Marketing', is not necessarily a member of the Board of Directors and therefore may not fall under the definition of Paragraph AU-1.2.5.

        May 2011

      • AU-1.2.7

        The Chief Executive or General Manager means a person who is responsible for the conduct of the licensee (regardless of actual title). The Chief Executive or General Manager must be resident in Bahrain.

        May 2011

      • AU-1.2.8

        Head of function means a person who exercises major managerial responsibilities, is responsible for a significant business or operating unit, or has senior managerial responsibility for maintaining accounts or other records of the licensee.

        May 2011

      • AU-1.2.9

        Whether a person is a head of function will depend on the facts in each case and is not determined by the presence or absence of the word in their job title. Examples of head of function might include, depending on the scale, nature and complexity of the business, a deputy Chief Executive; heads of departments such as Compliance or Internal Audit; or the Chief Financial Officer.

        May 2011

      • AU-1.2.10

        Where a firm is in doubt as to whether a function should be considered a controlled function it must discuss the case with the CBB.

        May 2011

      • AU-1.2.11

        The controlled functions of Money Laundering Reporting Officer/Deputy Money Laundering Reporting Officer are defined under Chapter FC-4.

        May 2011