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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.

          April 2016

        • AU-A.1.2

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

          April 2016

        • AU-A.1.3

          Licensed providers of regulated ancillary services fall into the following categories: third party administrators, card processing services, operating a credit reference bureau, payment service providers, Shari'a advisory/review services, operating a crowdfunding platform, account information service providers and payment initiation service providers and carrying out services in accordance with the CBB Law. These licensees are referred to as financial sector support institutions under Article (1) of the CBB Law and its amendments.

          Amended: October 2019
          April 2016

        • AU-A.1.4

          Regulated ancillary services are defined in Paragraph AU-1.2.1.

          April 2016

        • AU-A.1.5

          Persons undertaking certain functions in relation to ancillary service provider 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 ancillary service provider licensees are fit and proper. Those authorised by the CBB to undertake controlled functions are called approved persons.

          April 2016

      • Retaining Authorised Status

        • AU-A.1.6

          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.

          April 2016

      • Legal Basis

        • AU-A.1.7

          This Module contains the CBB's Directive incorporating the relevant Regulations and Resolutions (as amended from time to time) applicable to all ancillary service provider licensees (including their approved persons) regarding authorisation under CBB Rulebook Volume 5: Specialised Licensees 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 and its amendments ('CBB Law'). It includes:

          (a) the requirements (as amended from time to time) under Regulation No (1) of 2007 pertaining to the CBB's regulated services issued under Article 39 of the CBB Law and those requirements governing the conditions of granting a license for the provision of regulated services as prescribed under Resolution No (43) of 2011 and issued under the powers available to the CBB under Article 44(c);
          (b) the requirements under Resolution No. (16) for the year 2012 including the prohibition of marketing financial services pursuant to Article 42 of the CBB Law;
          (c) the prior approval requirements for approved persons under Resolution No (23) of 2015; and
          (d) the requirements (as amended from time to time) contained in Resolution No (1) of 2007 with respect to determining fees categories due for licenses and services provided by the CBB.
          Amended: October 2019
          Amended: December 2018
          April 2016

        • AU-A.1.8

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

          April 2016

        • AU-A.1.9

          Persons wishing to undertake regulated ancillary services are required to be licensed by the CBB as an ancillary service provider licensee.

          April 2016

      • Licensing Conditions

        • AU-A.1.10

          Ancillary service provider licensees are subject to 8 licensing conditions, mostly specified at a high-level in Module AU, and further expanded in underlying subject Modules (such as Module BR). 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.

          April 2016

      • Information Requirements and Processes

        • AU-A.1.11

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

          April 2016

    • AU-A.2 AU-A.2 Module History

      • Evolution of Module

        • AU-A.2.1

          This Module was first issued in April 2016. 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.

          April 2016

        • AU-A.2.2

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

          Module Ref. Change Date Description of Changes
          AU-1.2.10A, AU-1.2.10B and AU-1.2.10C 04/2017 Added Paragraphs on issuance of pre-paid cards and PCI-DSS certification for Payment Service Providers.
          AU-1.2.11 04/2017 Amended Paragraph on the settlement.
          AU-2.3.2 04/2017 Amendment of reference.
          AU-4.1.12 04/2017 Specified bank guarantee amounts.
          AU-4.1.16 (l) 04/2017 Amended bank guarantee amount.
          AU-4.5 07/2017 Added new Section on Publication of the Decision to Grant, Cancel or Amend a License
          AU-1.2.1(ee) 10/2017 Added Crowdfunding Platform Operators under the definition of regulated services.
          AU-1.2.10A(b) 10/2017 Amended bank guarantee requirement.
          AU-1.2.14 – AU-1.2.20 10/2017 Added requirements on crowdfunding platform operators
          AU-2.5.6A 10/2017 Added Paragraph on minimum core capital for crowdfunding platform operators.
          AU-3.1.2 10/2017 Amended Paragraph.
          AU-3.2 10/2017 Added a new section for the Approved Persons Requirements.
          AU-4.1.12 10/2017 Amended bank guarantee amount for PSP and Card Processing Companies.
          AU-4.1.16(l) 10/2017 Amended bank guarantee requirement for PSP issuing any multipurpose, electronic or otherwise, prepaid cards.
          AU-4.3 10/2017 Deleted Approved Persons requirements from AU-4.3 and added to AU-3.2.
          AU-4.6 10/2017 Added new section on Additional Requirements for Licensing Crowdfunding Platform Operators.
          AU-4.1.1 04/2018 Amended Paragraph.
          AU-4.3.2 04/2018 Amended Paragraph.
          AU-1.2.1 12/2018 Added AISP and PISPs.
          AU-1.2.10A 10/2018 Amended Paragraph.
          AU-1.2.11A
          AU-1.2.11B          		 10/2018 Added new Paragraphs on enabling PSPs to participate in EFTS
          AU-1.2.21 – AU1.2.25 12/2018 Added new Paragraphs on AISPs and PISPs.
          AU-2.5.6B
          AU-2.5.6C          		 12/2018 Added new Paragraphs on Account Information Service Provider & Payment Initiation Services Provider.
          AU-1.2.8 (a) & (b) 01/2019 Amended sub-paragraphs on clients' money account services.
          AU-1.2.10 01/2019 Amended guidance on clients' money account.
          AU-1.2.10A 01/2019 Amended sub-paragraph (a) on maximum balance limit for a natural person.
          Added new sub-paragraph (bb) on maximum balance limit for a legal person.
          Amend sub-paragraph (f).
          AU-1.2.11 01/2019 Amended Paragraph.
          AU-1.2.12 01/2019 Added a new Paragraph on audit of clients' money account.
          AU-1.2.14 01/2019 Amended Paragraph to include B2B.
          AU-1.2.16 01/2019 Changed guidance to rule and amended deleting B2B.
          AU-1.2.24 01/2019 Amended Paragraph.
          AU-2.5.6A 01/2019 Amended Core Capital amount.
          AU-4.1.16(m) 01/2019 Amended sub-paragraph.
          AU-1.2.11A 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11B 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11C 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11D 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11E 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11F 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11G 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11H 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11I 04/2019 Added a new Paragraph CDMs/kiosks.
          AU-1.2.11J 04/2019 Amended Paragraph number.
          AU-1.2.11K 04/2019 Amended Paragraph number.
          AU-1.2.11L 04/2019 Amended Paragraph number.
          AU-4.1.1 07/2019 Amended Paragraph to remove references to hardcopy Form 1 submission to online submission.
          AU-A.1.3 10/2019 Amended Paragraph on licensed providers categories.
          AU-1.2.1 10/2019 Amended Subparagraphs (a), (c), (d) and (ee).
          AU-1.2.2 10/2019 Amended Paragraph.
          AU-1.2.5 10/2019 Amended Paragraph.
          AU-1.2.21 10/2019 Added full term of AISP.
          AU-1.2.23 10/2019 Added full term of PISP.
          AU-4.1.13 10/2019 Amended Guidance.
          AU-4.1.15 10/2019 Amended Guidance.
          AU-4.2.4 10/2019 Changed from Rule to Guidance.
          AU-4.5.1 10/2019 Changed from Rule to Guidance.
          AU-1.2.11L 07/2020 Paragraph moved to Module BR.
          AU-1.2.1A 10/2020 Added a new Paragraph on compliance with AAOIFI Shari’a Standards.
          AU-5.2.2 10/2020 Amended Paragraph on fixed annual licence fees.
          AU-3.2.13A 01/2021 Added a new Paragraph on compliance of approved persons with the fit and proper requirement.
          AU-5.2.2A 01/2021 Added a new guidance clarifying the applicable fees for licensees.
          AU-4.1.4 07/2021 Amended Paragraph on the submission of licensing forms and applications.
          AU-4.7.9 07/2021 Added a new Paragraph on additional requirements for PISPs and AISPs.
          AU-1.2.14 04/2022 Amended Paragraph on crowdfunding platform operator definition.
          AU-1.2.18 - AU-1.2.20 04/2022 Deleted Paragraphs.
          AU-4.6.2 04/2022 Deleted Subparagraph (a).
          AU-1.2.10A 07/2022 Amended Subparagraph (a) on maximum balance in any digital wallet.
          AU-1.2.10A 04/2023 Amended Paragraph on payment from client money account.
          AU-2.5.3 04/2023 Amended Paragraph on minimum core capital and liquid funds for TPAs.

      • Superseded Requirements

        • AU-A.2.3

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

          Circular / other reference Subject
          Standard Conditions and Licensing Criteria for Providers of Ancillary Services to the Financial Sector Scope of license and licensing conditions.
          EDBS/KH/C/63/2018 Enabling PSPs to participate in EFTS.
          EDBS/KH/C/74/2018 Amendments to the Crowdfunding Requirements under the CBB Rulebook Volume 5 (Ancillary Service Providers).
          EDBS/KH/C/83/2018 Amendments in Authorization Module (AU) of Ancillary Service Providers
          Amended: January 2019
          Amended: October 2018
          April 2016