• HC-B HC-B Scope of Application

    • HC-B.1 HC-B.1 Scope of Application

      • HC-B.1.1

        The contents of this Module — unless otherwise stated — apply to all financing companies licensees, thereafter referred to in this Module as licensees.

        January 2013

    • HC-B.2 HC-B.2 Subsidiaries, Affiliates and Foreign Branches

      • HC-B.2.1

        Licensees must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their foreign branches, located outside the Kingdom of Bahrain, such that these are also subject to effective high-level controls. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.

        January 2013

      • HC-B.2.2

        Licensees must satisfy the CBB that financial services activities conducted in subsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.

        January 2013

      • HC-B.2.3

        Where a licensee is unable to satisfy the CBB that its subsidiaries and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — to the licensee arising from inadequate high-level controls in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between the licensee and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of the licensee, then its authorisation may be called into question.

        January 2013