• BR-1 BR-1 Prudential Reporting

    • BR-1.1 BR-1.1 Annual Requirements

      • BR-1.1.1

        All licensees are required to submit to the CBB their annual audited financial statements within 3 months of their financial year end.

        April 2016

      • BR-1.1.1A

        In accordance with Paragraphs EN-B.4.5 and EN-5.2.2, licensees must disclose in their annual audited financial statements the amount of any financial penalties paid to the CBB, together with a factual description of the reason(s) given by the CBB for the penalty. Licensees which fail to comply with this requirement will be required to make the disclosure in the annual audited financial statements of the subsequent year and will be subject to an enforcement action for non-disclosure.

        Added: October 2019

      • TPAs and PSPs

        • BR-1.1.2

          The notes to the financial statements must:

          (a) For TPAs, contain complete names and addresses of all insurance companies or self-funded schemes outside Bahrain with which the TPA had a contract in effect during the preceding calendar year; and
          (b) For PSPs, refer to the breakdown of clients' money and own funds.
          April 2016

        • BR-1.1.3

          In addition to the statements required in Paragraph BR-1.1.1, licensees are required to submit to the CBB the following information within 3 months of their financial year end:

          (a) The external auditor's management letter;
          (b) A report on the licensee's close links as required under Paragraph GR-8.1.3;
          (c) The licensee's group structure and the internal organisation chart;
          (d) The report on controllers as required under Paragraph GR-7.1.10; and
          (e) Any supplementary information as required by the CBB.
          April 2016

        • BR-1.1.4

          TPAs must also submit to the CBB a breakdown of their sources of revenue within 3 months following the year end in accordance with Appendix BR-10, included under Part B Volume 5 of the CBB Rulebook.

          April 2016

        • BR-1.1.5

          In accordance with the provisions of Section AA-4.1, the audited financial statements of the licensees must comply with the International Financial Reporting Standards (IFRS), and where applicable with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

          April 2016

        • BR-1.1.6

          Payment Service Providers must appoint independent auditors to perform an in-depth audit on clients’ money account (i.e. client money received and its usage, accounting records, internal controls etc.) every 6 months and submit the report to the CBB after two months of period end, i.e. 31st August for the June report and end of February for the December report. The audit must be performed by the licensee’s external auditor or an independent third-party audit firm acceptable to the CBB.

          Amended: January 2021
          Added: July 2020

        • BR-1.1.7

          The overarching objectives of the audit, required under Paragraph BR-1.1.6, must be:

          (a) Ensuring that client money is properly segregated and not comingled with the licensee’s own funds;
          (b) The licensee has established and implemented adequate internal control procedures and systems to ensure client money is always segregated;
          (c) Client money is not used for purposes other than for client transactions as stipulated in the terms of products/services with its customers;
          (d) The balances are maintained with a retail bank licensee in Bahrain and such balances are not subject to any lien or other restrictions; and
          (e) Fraud risks are adequately controlled and mitigated.
          Added: January 2021

    • BR-1.2 BR-1.2 Periodical Financial Statements

      • BR-1.2.1

        PSPs are required to submit to the CBB reviewed (unaudited) semi-annual financial statements (in the same format as their annual audited accounts) on a semi-annual basis, within two months of the date of these statements. Such statements must provide the breakdown of clients' money and own funds.

        April 2016

    • BR-1.3 BR-1.3 IIS Reporting Requirements

      • Institutional Information System (IIS)

        • BR-1.3.1

          All licensees are required to complete online non-financial information related to their institution by accessing the CBB's institutional information system (IIS). Licensees must update the required information at least on a quarterly basis or when a significant change occurs in the non-financial information included in the IIS. If no information has changed during the quarter, the licensee must still access the IIS quarterly and confirm that the information contained in the IIS is correct. Licensees must ensure that they access the IIS within 20 calendar days from the end of the related quarter and either confirm or update the information contained in the IIS.

          April 2016

        • BR-1.3.2

          Licensees failing to comply with the requirements of Paragraph BR-1.3.1 or reporting inaccurate information may be subject to financial penalties or other enforcement action as outlined in Module (EN) Enforcement.

          April 2016

    • BR-1.4 BR-1.4 Onsite Inspection Reporting

      • BR.1.4.1

        For the purpose of onsite inspection by the CBB, licensees must submit requested documents and completed questionnaires to the Inspection Directorate at the CBB three working days ahead of inspection team entry date.

        Added: April 2017

      • BR-1.4.2

        Licensees must review the contents of the draft Inspection Report and submit to the Inspection Directorate at the CBB a written assessment of the observations/issues raised within ten working days of receipt of such report. Evidentiary documents supporting management's comments must also be included in the response package.

        Added: April 2017

      • BR-1.4.3

        Licensees' board are required to review the contents of the Inspection Report and submit within one month, of the report issue date, a final response to such report along with an action plan addressing the issues raised within the stipulated timeline.

        Added: April 2017

      • BR-1.4.4

        Licensees failing to comply with the requirements of Paragraphs BR-1.4.1 and BR-1.4.2 are subject to date sensitive requirements and other enforcement actions as outlined in Module (EN) Enforcement.

        Added: April 2017