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  • AU-A AU-A Introduction

    • AU-A.1 AU-A.1 Purpose

      • Executive Summary

        • AU-A.1.1

          The executive summary only provides an overview. For detailed rules, reference must be made to the individual rules outlined in the remainder of this Module.

          January 2014

        • AU-A.1.2

          The Authorisation Module sets out the Central Bank of Bahrain's ('CBB's) approach to licensing providers of regulated microfinance services in the Kingdom of Bahrain. It also sets out CBB requirements for approving persons undertaking key functions in those providers.

          January 2014

        • AU-A.1.3

          Persons undertaking certain functions in relation to licensees require prior CBB approval. These functions (called 'controlled functions') include members of the Board of directors and members of senior management. The controlled functions regime supplements the licensing regime by ensuring that key persons involved in the running of licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

          January 2014

      • Retaining Authorised Status

        • AU-A.1.4

          The requirements set out in Chapters AU-2 and AU-3 represent the minimum conditions that have to be met in each case, both at the point of authorisation and on an on-going basis thereafter, in order for authorised status to be retained.

          January 2014

      • Legal Basis

        • AU-A.1.5

          This Module contains the CBB's Directive, Resolution and Regulations (as amended from time to time) regarding authorisation under Volume 5 of the CBB Rulebook. It is applicable to all microfinance institutions licensees (as well as to approved persons), and is issued under the powers available to the CBB under Articles 37 to 42, 44 to 48 and 180 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). It also includes the requirements contained in Resolution No (1) of 2007 (as amended from time to time) with respect to determining fees categories due for licenses and services provided by the CBB. It contains requirements under Regulation No (1) of 2007 pertaining to the CBB's regulated services issued under Article 39 of the CBB Law and governing the conditions of granting a license for the provision of regulated services as prescribed under Resolution No (43) of 2011 and is issued under the powers available to the CBB under Article 44(c). The Module contains requirements under Resolution No.(16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law. This Module contains the prior approval requirements for approved persons under Resolution No (23) of 2015.

          Amended: July 2015
          January 2014

        • AU-A.1.6

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          January 2014

        • AU-A.1.7

          Persons wishing to undertake regulated microfinance services are required to be licensed by the CBB as a microfinance institution licensee.

          January 2014

      • Licensing Conditions

        • AU-A.1.8

          Microfinance institution licensees are subject to 8 licensing conditions, mostly specified at a high-level in Module AU, and further expanded in underlying subject Modules. These licensing conditions are broadly equivalent to the standards applied in other Volumes of the CBB Rulebook, to other license categories, and are consistent with international good practice.

          January 2014

      • Information Requirements and Processes

        • AU-A.1.9

          Chapter AU-3 specifies the processes and information requirements that have to be followed for applicants seeking a microfinance institution license. It also covers the voluntary surrender of a license, or its cancellation by the CBB.

          January 2014

    • AU-A.2 AU-A.2 Module History

      • Evolution of Module

        • AU-A.2.1

          This Module was first issued in January 2014. All subsequent changes to this Module are annotated with the end-calendar quarter date in which the change was made. Chapter UG-3 provides further details on Rulebook maintenance and version control.

          January 2014

        • AU-A.2.2

          A list of recent changes made to this Module is provided below:

          Module Ref. Change Date Description of Changes
          AU-1.1.3 04/2014 Corrected cross reference.
          AU-5.2.1 04/2014 Corrected due date of CBB annual license fees.
          AU-1.3.1 10/2014 Corrected cross reference.
          AU-A.1.5 07/2015 Legal basis updated to reflect Resolution No (23) of 2015.
          AU-4.2 07/2015 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-1.4 01/2016 Clarified general requirements for approved persons.
          AU-3 01/2016 Amended to be in line with Resolution No (23) of 2015 on Prior Approval Requirements for Approved Persons.
          AU-4.2 01/2016 Minor amendments to be aligned with other Volumes of the Rulebook.
          AU-4.4 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License.
          AU-4.1.1 04/2018 Amended Paragraph.
          AU-4.2.2 04/2018 Amended Paragraph.
          AU-1.2.2 04/2019 Amended conventional microfinance limit per eligible beneficiary.
          AU-1.2.3 04/2019 Amended Shari'a compliant microfinance contracts limit per eligible beneficiary.
          AU-2.5.2 04/2019 Amended minimum required capital.
          AU-4.1.1 07/2019 Amended Paragraph to remove references to hardcopy Form 1 submission to online submission.
          AU-4.4.1 10/2019 Changed from Rule to Guidance.
          AU-1.2.1A 10/2020 Added a new Paragraph on compliance with AAOIFI Shari’a Standards.
          AU-4.2.10A 01/2021 Added a new Paragraph on compliance of approved persons with the fit and proper requirement.

      • Superseded Requirements

        • AU-A.2.3

          This Module supersedes the following provisions contained in circulars or other regulatory requirements:

          Document Ref. Document Subject
          Volumes 1 and 2 Module LR
             
          January 2014