Definitions
AU-1.2.5
Director is any person who occupies the position of aDirector , as defined in Article 173 of the Commercial Companies Law (Legislative Decree No. 21 of 2001).January 2013AU-1.2.6
The fact that a person may have '
Director' in their job title does not of itself make them aDirector within the meaning of the definition noted in Paragraph AU-1.5.5. For example, a 'Director of IT', is not necessarily a member of the Board ofDirectors and therefore may not fall under the definition of Paragraph AU-1.5.5.January 2013AU-1.2.7
The
Chief Executive orGeneral Manager means a person who is responsible for the conduct of thelicensee (regardless of actual title). TheChief Executive orGeneral Manager must be resident in Bahrain. This person is responsible for the conduct of the whole of the firm.January 2013AU-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 thelicensee .January 2013AU-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 ofhead of function might include, depending on the scale, nature and complexity of the business, a deputyChief Executive ; heads of departments such as Risk Management, Compliance or Internal Audit; or any front office functions or the Chief Financial Officer.January 2013AU-1.2.10
Where a licensee is in doubt as to whether a function should be considered a
controlled function it must discuss the case with the CBB.January 2013AU-1.2.11
The
controlled function of compliance officer is defined in accordance with the compliance function under Section HC-6.4. Thecontrolled functions of Money Laundering Reporting Officer is defined under Chapter FC-4.January 2013AU-1.2.12
All
licensees must designate anemployee , of appropriate standing and resident in Bahrain, as compliance officer. The duties of the compliance officer include:(a) Assistingsenior management to identify and assess the main compliance risks facing thelicensees and the plans to manage them;(b) Advisingsenior management on compliance laws, rules and standards, including keeping them informed on developments in the area;(c) Assistingsenior management in educating staff on compliance issues, and acting as a contact point within thelicensee for compliance queries from staff members;(d) Establishing written guidance to staff on the appropriate implementation of compliance laws, rules and standards through policies and procedures and other documents such as compliance manuals, internal codes of conduct and practice guidelines;(e) On a pro-active basis, identifying, documenting and assessing the compliance risks associated with thelicensee's business activities, including the development of new products and business practices, the proposed establishment of new types of business or customer relationships, or material changes in the nature of such relationships;(f) Monitoring and testing compliance by performing sufficient and representative compliance testing; and(g) Reporting on a regular basis to the board of directors or the audit committee of the board of directors.January 2013
