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 aslicensees .January 2013HC-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 foreignbranches , 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 2013HC-B.2.2
Licensees must satisfy the CBB that financial services activities conducted insubsidiaries and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.January 2013HC-B.2.3
Where a
licensee is unable to satisfy the CBB that itssubsidiaries 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 thelicensee 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 thelicensee and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of thelicensee , then its authorisation may be called into question.January 2013