• Application Form and Documents

    • AU-4.1.1

      Applicants for a license must fill in the Application Form 1 (Application for a License) online, available on the CBB website under E-services/online Forms. The applicant must upload scanned copies of supporting documents listed in Paragraph AU-4.1.4, unless otherwise directed by the CBB.

      Amended: July 2019
      Amended: April 2018
      January 2014

    • AU-4.1.2

      Articles 44 to 47 of the CBB Law govern the licensing process. This prescribes a single stage process, with the CBB required to take a decision within 60 calendar days of an application being deemed complete (i.e. containing all required information and documents). See below, for further details on the licensing process and timelines.

      January 2014

    • AU-4.1.3

      References to applicant mean the proposed licensee seeking authorisation. An applicant may appoint a representative — such as a law firm or professional consultancy — to prepare and submit the application. However, the applicant retains full responsibility for the accuracy and completeness of the application, and is required to certify the application form accordingly. The CBB also expects to be able to liaise directly with the applicant during the authorisation process, when seeking clarification of any issues.

      January 2014

    • AU-4.1.4

      Unless otherwise directed by the CBB, the following documents must be provided together with the covering letter referred in Paragraph AU-4.1.1 in support of a license application:

      (a) A duly completed Form 2 (Application for Authorisation of Controller) for each controller of the proposed licensee;
      (b) A duly completed Form 3 (Application for Approved Person status), for each individual applying to undertake controlled functions of the proposed licensee;
      (c) A comprehensive business plan for the application, addressing the matters described in AU-4.1.6;
      (d) Where the applicant is an existing institution, a copy of the applicant's commercial registration;
      (e) Where the applicant is a corporate body, a certified copy of a Board resolution of the applicant along with minutes of the concerned meeting, confirming the board's decision to seek a CBB microfinance institution license;
      (f) Details of the proposed licensee's close links, if any, as defined under Chapter GR-5;
      (g) In the case of applicants that are part of a regulated group, a letter of non-objection to the proposed license application from the applicant's home supervisor, together with confirmation that the group is in good regulatory standing and is in compliance with applicable supervisory requirements, including those relating to capital adequacy requirements;
      (h) Copies of the audited financial statements of the applicant's major shareholder and/or group (as directed by the CBB), for the three years immediately prior to the date of application; and
      (i) A draft copy of the applicant's (and parent's where applicable) memorandum and articles of association, addressing the matters described in AU-4.1.6.
      January 2014

    • AU-4.1.5

      The CBB may require that an acceptably worded letter of guarantee be provided in support of the application for a license. Where the application for the license is for an incorporated entity, the CBB may seek a letter of guarantee from controllers. Where the application is for an overseas licensee, the CBB may seek a letter of guarantee from the parent company.

      January 2014

    • AU-4.1.6

      The business plan submitted in support of an application should include:

      (a) An outline of the history of the applicant and its shareholders;
      (b) The reasons for applying for a license, including the applicant's strategy and market objectives;
      (c) The proposed type of activities to be carried on by the applicant in/from the Kingdom of Bahrain;
      (d) The proposed Board and senior management of the applicant and the proposed organisational structure of the applicant;
      (e) An independent assessment of the risks that may be faced by the applicant, together with the proposed systems and controls framework to be put in place for addressing those risks and to be used for the main business functions; and
      (f) An opening balance sheet for the applicant, together with a three-year financial projection, with all assumptions clearly outlined, demonstrating that the applicant will be able to meet applicable leverage and liquidity requirements.
      January 2014

    • AU-4.1.7

      The applicant's (and where applicable, its parent's) memorandum and articles of association must explicitly provide for it to undertake the activities proposed in the application, and must preclude the applicant from undertaking other commercial activities, unless these arise out of its microfinance activities or are incidental to those.

      January 2014

    • AU-4.1.8

      All documentation provided to the CBB as part of an application for a license must be in either Arabic or English language. Any documentation in a language other than English or Arabic must be accompanied by a certified English or Arabic translation thereof.

      January 2014

    • AU-4.1.9

      Any material changes or proposed changes to the information provided to the CBB in support of an authorisation application that occurs prior to authorisation must be reported to the CBB.

      January 2014

    • AU-4.1.10

      Failure to inform the CBB of the changes specified in Paragraph AU-4.1.10 is likely to be viewed as a failure to provide full and open disclosure of information, and thus a failure to meet licensing condition in Paragraph AU-2.8.2.

      January 2014