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  • BR-2.2 BR-2.2 Notification Requirements

    • Matters Having a Serious Supervisory Impact

      • BR-2.2.1

        A licensee must notify the CBB if any of the following has occurred, may have occurred or may occur in the near future:

        (a) The licensee failing to satisfy one or more of the Principles of Business referred to in Module PB;
        (b) Any matter which could have a significant adverse impact on the licensee's reputation;
        (c) Any matter which could affect the licensee's ability to continue to provide adequate services to its customers and which could result in serious detriment to a customer of the licensee;
        (d) Any matter in respect of the licensee that could result in material financial consequences to the financial system or to other licensees;
        (e) A breach of any provision of the Rulebook (including a Principle);
        (f) A breach of any requirement imposed by the relevant law or by regulations or an order made under any relevant law by the CBB;
        (g) If a licensee becomes aware, or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way, it must notify the CBB immediately (ref. BR-3.3.2); or
        (h) If the licensee intends to suspend any or all the licensed regulated services or ceases business, setting out how it proposes to do so and, in particular, how it will treat any of its liabilities (ref GR-6.1.2).
        January 2014

      • BR-2.2.2

        The circumstances that may give rise to any of the events in Paragraph BR-2.2.1 are wide-ranging and the probability of any matter resulting in such an outcome, and the severity of the outcome, may be difficult to determine. However, the CBB expects licensees to consider properly all potential consequences of events.

        January 2014

      • BR-2.2.3

        In determining whether an event that may occur in the near future should be notified to the CBB, a licensee should consider both the probability of the event happening and the severity of the outcome should it happen. Matters having a supervisory impact could also include matters relating to a controller that may indirectly have an effect on the licensee.

        January 2014

    • Legal, Professional, Administrative or other Proceedings against a Licensee

      • BR-2.2.4

        A licensee must notify the CBB immediately of any legal, professional or administrative or other proceedings instituted against the licensee, controller or a close link of the licensee that is known to the licensee and is significant in relation to the licensee's financial resources or its reputation.

        January 2014

      • BR-2.2.5

        A licensee must notify the CBB of the bringing of a prosecution for, or conviction of, any offence under any relevant law against the licensee that would prevent the licensee from meeting the Principles of Business (Module PB) or any of its approved persons from meeting the fit and proper requirements of Module AU.

        January 2014

    • Fraud, Errors and other Irregularities

      • BR-2.2.6

        A licensee must notify the CBB immediately if one of the following events arises:

        (a) It becomes aware that an employee may have committed a fraud against one of its customers;
        (b) It becomes aware that a person, whether or not employed by it, is acting with intent to commit fraud against it;
        (c) It identifies irregularities in its accounting or other records, whether or not there is evidence of fraud;
        (d) It suspects that one of its employees may be guilty of serious misconduct concerning his honesty or integrity and which is connected with the licensee's regulated activities; or
        (e) Conflicts of interest.
        January 2014

    • Insolvency, Bankruptcy and Winding Up

      • BR-2.2.7

        Except in instances where the CBB has initiated the following actions, a licensee must notify the CBB immediately of any of the following events:

        (a) The calling of a meeting to consider a resolution for winding up the licensee, a controller or close link of the licensee;
        (b) An application to dissolve a controller or close link of the licensee or to strike the licensee off the register of microfinance institutions;
        (c) The presentation of a petition for the winding up of a controller or close link of the licensee;
        (d) The making of any proposals, or the making of, a composition or arrangement with any one or more of the licensee's creditors, for material amounts of debt;
        (e) An application for the appointment of an administrator or trustee in bankruptcy to a controller or close link of the licensee;
        (f) The appointment of a receiver to a controller or close link of the licensee (whether an administrative receiver or a receiver appointed over particular property); or
        (g) An application for an interim order against the licensee, a controller or close link of the licensee under the Bankruptcy and Composition Law, Decree Law No(11), 1987 or similar legislation in another jurisdiction.
        January 2014

    • External Auditor

      • BR-2.2.8

        A licensee must notify the CBB of the following and the reason for the change:

        (a) Removal or resignation of auditor (ref. AA-1.2.1); or
        (b) Change in audit partner (ref. AA-1.3.3).
        January 2014

    • Approved Persons

      • BR-2.2.9

        A licensee must notify the CBB of the termination of employment of approved persons, including particulars of reasons for the termination and arrangements with regard to replacement (ref. AU-4.3.8 and AU-4.4.8).

        January 2014

    • Authorised Signatories

      • BR-2.2.10

        At the time of authorisation (when the license is granted) or whenever a change occurs, in order to maintain an up-to-date record of authorised signatories of respective financial institutions, the CBB requires all licensees to submit to it a list of specimen signatures of the officials authorised to sign on behalf of the concerned institution.

        January 2014

    • Current Management and Changes thereto

      • BR-2.2.11

        At the time of authorisation (when the license is granted) or whenever a change occurs, all licensees must keep the CBB informed, in writing, of the controlled functions held by approved persons. Such notification must include the following information:

        (a) Full name (and identity card for Bahrain resident management);
        (b) Contact details including address and emergency phone number;
        (c) Date of birth;
        (d) Place of birth (including town etc.);
        (e) Nationality;
        (f) Professional qualifications (by educational establishment and dates); and
        (g) Career details over the last ten years (with your institution or elsewhere).
        January 2014

    • Breach of Capital Adequacy Requirements

      • BR-2.2.12

        In the event that a licensee fails to meet any of the requirements specified in Module CA (Capital Adequacy) it must, on becoming aware that it has breached the requirements, immediately notify the CBB in writing (ref. CA-1.1.9).

        January 2014

      • BR-2.2.13

        As specified in Article 58 of the CBB Law, a licensee must notify the CBB immediately of any matter that may affect its financial position, currently or in the future, or limit its ability to meet its obligations.

        January 2014

    • Outsourcing Arrangements

      • BR-2.2.14

        Licensees must immediately inform their relevant supervisory contact at the CBB of any material problems or changes encountered with an outsourcing provider.

        Amended: January 2023
        January 2014

    • Controllers

      • BR-2.2.15

        If, as a result of circumstances outside the licensee's knowledge and/or control, one of the changes to their controllers specified in Paragraph GR-4.1.1 is triggered prior to CBB approval being sought or obtained, the licensee must notify the CBB the earlier of:

        (a) When the change takes effect; and
        (b) When the controller becomes aware of the proposed change (ref. GR-4.1.7).
        January 2014

      • BR-2.2.16

        As specified in Article 52 of the CBB Law, a licensee must notify the CBB of the following events:

        (a) If effective control over a licensee takes place indirectly whether by way of inheritance or otherwise;
        (b) Gaining control directly as a result of any action leading to it; or
        (c) The intention to take any of the actions that would lead to control.
        January 2014