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  • 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