General Prohibitions
AU-1.1.1
No person may:
(a) Undertake (or hold themselves out to undertake)microfinance services , by way of business within or from the Kingdom of Bahrain unless duly licensed by the CBB;(b) Hold themselves out to be licensed by the CBB unless they have as a matter of fact been so licensed: or(c) Market anyfinancial services in the Kingdom of Bahrain unless:(i) Allowed to do by the terms of a license issued by the CBB;(ii) The activities come within the terms of an exemption granted by the CBB by way of a Directive; or(iii) Has obtained the express written permission of the CBB to offerfinancial services .January 2014AU-1.1.2
In accordance with Resolution No.(16) for the year 2012 and for the purpose of Subparagraph AU-1.1.1(c), the word 'market' refers to any promotion, offering, announcement, advertising, broadcast or any other means of communication made for the purpose of inducing recipients to purchase or otherwise acquire
financial services in return for monetary payment or some other form of valuable consideration.January 2014AU-1.1.3
Persons in breach of Subparagraph AU-1.1.1(c) are considered in breach of Resolution No.(16) for the year 2012 and are subject to penalties under Articles 129 and 161 of the CBB Law (see also Section EN-10.3).
Amended: April 2014
January 2014AU-1.1.4
Licensees are prohibited from taking deposits.January 2014AU-1.1.5
Only persons licensed to undertake
regulated microfinance services can use the term 'microfinance' in their corporate or trading names, or otherwise hold themselves out to be amicrofinance institution .Licensees are not allowed to transact with non-residents of the Kingdom of Bahrain, and in foreign currencies. To qualify as a microfinance institution, the person concerned must undertake (as a minimum), the activities of providing credit toeligible beneficiaries .January 2014AU-1.1.6
Licensees are obliged to include the word 'microfinance' in their corporate or trading names and are required to make clear their regulatory status in their letter heads, customer communications, website and other communication as required under Section GR-2.2.January 2014AU-1.1.7
For the purposes of Rule AU-1.1.5, persons will be considered in breach of this requirement if they attempt to operate as, or incorporate a microfinance institution in Bahrain with or without a name containing the word "microfinance" (or the equivalent in any language), without holding the appropriate CBB license or obtaining the prior approval of the CBB.
January 2014
