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  • AU-2 AU-2 Licensing Conditions

    • AU-2.1 AU-2.1 Condition 1: Legal Status

      • AU-2.1.1

        The legal status of a licensee must be:

        (i) A Bahraini joint stock company (B.S.C.); or
        (ii) A Bahraini Company with Limited Liability (W.L.L.)
        May 2011

    • AU-2.2 AU-2.2 Condition 2: Mind and Management

      • AU-2.2.1

        Licensees with their Registered Office in the Kingdom of Bahrain must maintain their Head Office in the Kingdom and must conduct their business from their Head Office.

        May 2011

      • AU-2.2.2

        In assessing the location of a licensee's Head Office, the CBB will take into account the residency of its Directors and senior management. The CBB requires the majority of key decision makers in executive management — including the Chief Executive - to be resident in Bahrain.

        May 2011

    • AU-2.3 AU-2.3 Condition 3: Controllers and Close Links

      • AU-2.3.1

        Licensees must satisfy the CBB that their controllers are suitable and pose no undue risks to the licensee. Licensees must also satisfy the CBB that their close links do not prevent the effective supervision of the licensee by the CBB and otherwise pose no undue risks to the licensee.

        May 2011

    • AU-2.4 AU-2.4 Condition 4: Board and Employees

      • AU-2.4.1

        In accordance with Article 65(a) of the CBB law, those nominated to carry out controlled functions must satisfy CBB's approved person's requirements.

        May 2011

      • AU-2.4.2

        The definition of controlled functions is contained in Paragraph AU-1.2.2, whilst Chapter AU-3 sets out CBB's approved persons requirements. Applications for approved person status must be submitted using the prescribed approved persons form.

        May 2011

      • AU-2.4.3

        The licensee's staff, taken together, must collectively provide a sufficient range of skills and experience to manage the affairs of the licensee in a sound and prudent manner. Licensees must ensure their employees meet any training and competency requirements specified by the CBB.

        May 2011

      • AU-2.4.4

        [This Paragraph was deleted in January 2016.]

        Deleted: January 2016
        May 2011

    • AU-2.5 AU-2.5 Condition 5: Financial Resources

      • AU-2.5.1

        Licensees must maintain a level of financial resources, as agreed with the CBB, adequate for the level of business proposed. The level of financial resources held must exceed at all times the minimum requirements contained in Module CA (Capital Adequacy).

        May 2011

    • AU-2.6 AU-2.6 Condition 6: Systems and Controls

      • AU-2.6.1

        Licensees must maintain systems and controls that are, in the opinion of the CBB, adequate for the scale and complexity of their activities.

        May 2011

      • AU-2.6.2

        Licensees must maintain adequate segregation of responsibilities in their staffing arrangements, to protect against the misuse of systems or errors. Such segregation should ensure that no single individual has control over all stages of a transaction.

        May 2011

      • AU-2.6.3

        Licensees must maintain systems and controls that are, in the opinion of the CBB, adequate to address the risks of financial crime occurring in the licensee. These systems and controls must meet the minimum requirements contained in Module FC (Financial Crime), as specified for the license held.

        May 2011

      • AU-2.6.4

        As part of the licensing approval process, applicants must demonstrate in their business plan (together with any supporting documentation) what risks their business would be subject to and how they would manage those risks. Applicants may also be asked to provide an independent assessment of the appropriateness of their systems and controls to the CBB.

        May 2011

    • AU-2.7 AU-2.7 Condition 7: External Auditor

      • AU-2.7.1

        Licensees must appoint an external auditor, subject to prior CBB approval. The minimum requirements regarding external auditors contained in Module AA (Auditors and Accounting Standards) must be met.

        May 2011

    • AU-2.8 AU-2.8 Condition 8: Other Requirements

      • Books and Records

        • AU-2.8.1

          Licensees must maintain comprehensive books of accounts and other records, which must be available for inspection within the Kingdom of Bahrain by the CBB, or persons appointed by the CBB, at any time. Licensees must comply with the minimum record-keeping requirements contained in Module GR. Books of accounts must comply with IFRS standards.

          May 2011

      • Provision of Information

        • AU-2.8.2

          Licensees must act in an open and cooperative manner with the CBB. Licensees must meet the regulatory reporting and public disclosure requirements contained in Modules BR and PD respectively.

          May 2011

      • General Conduct

        • AU-2.8.3

          Licensees must conduct their activities in a professional and orderly manner, in keeping with good market practice standards. Licensees must comply with the general standards of business conduct contained in Module PB, as well as the standards relating to treatment of customers contained in Module BC.

          May 2011

      • License Fees

        • AU-2.8.4

          Licensees must comply with any license fee requirements applied by the CBB.

          May 2011

        • AU-2.8.5

          License fee requirements are contained in Chapter AU-5.

          May 2011

      • Additional Conditions

        • AU-2.8.6

          Licensees must comply with any other specific requirements or restrictions imposed by the CBB on the scope of their license.

          May 2011

        • AU-2.8.7

          When granting a license, the CBB specifies the regulated administration services that the licensee may undertake. Licensees must respect the scope of their license.

          May 2011

        • AU-2.8.8

          In addition, the CBB may vary existing requirements or impose additional restrictions or requirements, beyond those already specified in Volume 5, to address specific risks.

          May 2011