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  • AU-1.3 AU-1.3 Approved Persons

    • General Requirements

      • AU-1.3.1

        Licensees must obtain the CBB's prior written approval for any person wishing to undertake a controlled function at a licensee. The approval from the CBB must be obtained prior to their appointment.

        April 2016

      • AU-1.3.2

        Controlled functions are those occupied by board members and persons in executive positions and include:

        (a) Member of the Board of Directors;
        (b) Chief executive or general manager and their deputies;
        (c) Head of function;
        (d) Compliance officer; and
        (e) Money Laundering Reporting Officer (for PSPs).
        April 2016

      • AU-1.3.3

        Combination of the above controlled functions is subject to the requirements contained in Module HC.

        April 2016

    • Basis for Approval

      • AU-1.3.4

        Approval under Paragraph AU-1.3.1 is only granted by the CBB, if it is satisfied that the person is fit and proper to hold the particular position in the licensee concerned. 'Fit and proper' is determined by the CBB on a case-by-case basis. The definition of 'fit and proper' and associated guidance is provided in Section AU-3.1.

        April 2016

      • AU-1.3.5

        The chief executive or general manager means a person who is responsible for the conduct of the licensee (regardless of actual title). The chief executive or general manager must be resident in Bahrain. This person is responsible for the conduct of the whole of the firm.

        April 2016

      • AU-1.3.6

        Head of function means a person who exercises major managerial responsibilities, is responsible for a significant business or operating unit, or has senior managerial responsibility for maintaining accounts or other records of the licensee.

        April 2016

      • AU-1.3.7

        Whether a person is a head of function will depend on the facts in each case and is not determined by the presence or absence of the word in their job title. Examples of head of function might include, depending on the scale, nature and complexity of the business, a deputy chief executive; heads of departments such as risk management, compliance or internal audit; the chief financial officer; head of business department, etc..

        April 2016

      • AU-1.3.8

        Where a licensee is in doubt as to whether a function should be considered a controlled function it must discuss the case with the CBB.

        April 2016

      • AU-1.3.9

        All licensees must designate an employee, of appropriate standing and resident in Bahrain, as compliance officer. The compliance officer must report to senior management and must have access to the board of directors. The duties of the compliance officer include:

        (a) Assisting senior management/head of function to identify and assess the main compliance risks facing the licensees and the plans to manage them;
        (b) Advising senior management/head of function on compliance with laws, rules and standards, including keeping them informed on developments in the area;
        (c) Assisting senior management/head of function in educating staff on compliance issues, and acting as a contact point within the licensee for compliance queries from staff members;
        (d) Establishing written guidance to staff on the appropriate implementation of compliance with laws, rules and standards through policies and procedures and other documents such as compliance manuals, internal codes of conduct and practice guidelines;
        (e) On a pro-active basis, identifying, documenting and assessing the compliance risks associated with the licensee's business activities, including the development of new products and business practices, the proposed establishment of new types of business or customer relationships, or material changes in the nature of such relationships;
        (f) Monitoring and testing compliance by performing sufficient and representative compliance testing; and
        (g) Reporting on a regular basis to the board of directors or the Audit committee of the board of directors.
        April 2016