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  • MIE-2 MIE-2 Formal Investigation

    • MIE-2.1 MIE-2.1 Scope of Investigation

      • MIE-2.1.1

        Notwithstanding anything in this Module, or any other rules and regulations of the CBB, the Governor of the CBB may, if he thinks fit and it is in the public interest to do so, order an investigation as per Article 121 of the CBB Law.

        (a) The CBB may conduct such investigation as it considers necessary or expedient for any of the following purposes:
        (i) to exercise any of its powers or to perform any of its functions and duties under the CBB Law;
        (ii) to ensure compliance with the CBB Law, rules, regulations, directives, or any written direction issued under the CBB Law;
        (iii) to investigate an alleged or suspected contravention of any provision of the CBB Law, rules, regulations, or directives, or any written direction issued under the CBB Law;
        (iv) to investigate whether the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market in violation of the CBB Law, rules and regulations; or
        (v) to investigate whether any capital market service provider, or any person associated with the securities market, or any other person has violated any of the provisions of the CBB Law, or the rules, regulations or directives issued thereunder.
        (b) A requirement imposed by the CBB in the exercise of its powers under Parts 7 or 9 of the CBB Law shall be deemed to have effect notwithstanding any obligations as to secrecy or other restrictions upon the disclosure of information imposed by any prescribed written law or any requirement imposed thereunder, any rule of law, any contract or any rule of professional conduct.
        (c) Any person who complies with a requirement imposed by the CBB in the exercise of its powers under Parts 7 or 9 of the CBB Law shall not be treated by the CBB as being in breach of any restriction upon the disclosure of information, or thing imposed by any prescribed written law or any requirement imposed thereunder, any rule of law, any contract or any rule of professional conduct.
        (e) In this Module, "requirement by the CBB" includes a requirement imposed by the CMSD or an investigator appointed by the CBB to conduct a formal investigation.
        Amended: July 2021

      • MIE-2.1.2

        When necessary, the CMSD may appoint one or more qualified investigators to conduct an investigation with respect to the following, in accordance with Chapter 1 of Part 9 (Articles 121-124) of the CBB Law:

        (a) Nature or position of the business of the capital market service provider;
        (b) A particular aspect of the businesses of the capital market service provider;
        (c) The ownership or control of the capital market service provider;
        (d) Whether the capital market service provider is practicing the very business licensed thereto, and assessing to what extent the capital market service provider is abiding, in providing the said business, by the provisions of the law and the terms and conditions of the licence.
        (e) Whether the capital market service provider is carrying out unlicensed business;
        (f) Whether the listed companies are abiding by the procedures and principles of listing referred to in paragraph (c) of Article 86 of the CBB Law.

        The investigator may conduct an investigation, where necessary, on the business of any member of a group or company to which the capital market service provider under investigation is a party. The capital market service provider under investigation must be notified in writing of the decision to investigate its business.

        Amended: July 2021

      • MIE-2.1.3

        In exercise of powers available to the CBB under Article 38 of the CBB Law, the CBB implements the scope referred to in rule MIE-2.1.2 above for the purpose of achieving the objectives of the CBB stated in Article 3 of the CBB Law, and discharging duties and responsibilities mandated to the CBB vide Article 4 of the CBB Law, the matters referred to in rule MIE-2.1.2 (a)-(f) shall include the following:

        (i) Investigation of matters considered expedient for the purpose of ensuring compliance with the CBB Law, or any rules or regulations issued thereunder.
        (ii) Alleged or suspected contravention of any provision of the CBB Law or rules and regulations made thereunder, or any directive issued by the CBB.
        (iii) Whether the transactions in securities are being dealt with in a manner detrimental to the investors or the securities market in violation of the CBB Law, rules and regulations; or
        (iv) Whether a capital market service provider, or any person associated with the securities market, or any other person has violated any of the provisions of the CBB Law, or the rules, regulations or directives issued thereunder or business rules of SROs.
        Amended: July 2021

      • Self-Incrimination and Savings for Advocates and Solicitors

        • MIE-2.1.4

          (a) A person is not excused from disclosing information to the CBB or, as the case may be, an investigator appointed by the CBB to conduct a formal investigation, under a requirement made of him in any provision of this Module, on the grounds that the disclosure of the information might tend to incriminate him.
          (b) Where a person claims, before making a statement disclosing information that he is required to under any provision of this Module to the CBB or, as the case may be, an investigator appointed by the CBB to conduct a formal investigation, that the statement might tend to incriminate him, that statement shall not be used by the CBB to support any CBB disciplinary measures against him.
          (c) Nothing in this Module shall:
          (i) Compel an advocate and solicitor to disclose or produce a privileged communication, or a document or other material containing a privileged communication, made by or to him in that capacity; or
          (ii) Authorise the taking of any such document or other material which is in his possession.
          (d) An advocate and solicitor who refuses to disclose the information to produce the document or other material referred to in paragraph (c) shall nevertheless be obliged to give the name and address (if he knows them) of the person to whom, or by or on behalf of whom, that privileged communication was made.
          Amended: July 2021

    • MIE-2.2 MIE-2.2 Ordering a Formal Investigation

      • Appointment of Investigator

        • MIE-2.2.1

          (a) The CMSD may, at any time by order in writing, direct any official of the CMSD specified in the order to conduct a formal investigation into the affairs of any SRO, or member of an SRO, or listed company or issuer of securities, or any other capital market service provider or persons associated with the securities market or any other person, and to report thereon to the CBB, as per Article 121 of the CBB Law.
          (b) The CMSD may also appoint, with the approval of the Governor, any professional firm to conduct such formal investigation referred to in paragraph (a) of this rule.
          Amended: July 2021

        • MIE-2.2.2

          Before it proceeds with an investigation, the CMSD will satisfy itself that there are grounds to investigate under the statutory provisions that give the CBB powers to appoint investigators. If the statutory test is met, it will decide whether to carry out an investigation after considering all the relevant circumstances. To assist its consideration of cases, the CMSD will apply a set of assessment criteria stated in paragraph MIE-2.2.4. Not all of the criteria will be relevant to every case and there may be other considerations which are not mentioned in the list, but which are relevant to a particular case. The CMSD's assessment will include considering whether using alternative procedures is more appropriate, taking into account the overall circumstances of the person concerned and the wider context. Another consideration will be whether the CBB is under a general duty to take action on behalf of, or otherwise to provide assistance to another domestic or overseas authority.

        • MIE-2.2.3

          Formal investigation can be ordered in three ways. Firstly, it can be when a preliminary investigation opened under section MIE-1.11 can be converted into a formal investigation based on the findings, facts and evidence gathered during the preliminary investigation. Secondly, prior to completion of the preliminary investigation, it may be determined that it would be appropriate to order a formal investigation on the case. Thirdly, a formal investigation can also be ordered without any history of a preliminary investigation on the matter.

      • Factors Considered while Deciding on a Formal Investigation

        • MIE-2.2.4

          Without prejudice to the generality of the powers of the CBB to order formal investigations, the factors that may be considered by the CBB, while deciding to order a formal investigation, include but are not limited to:

          (a) Whether the subject matter is a CBB priority in the context of the CBB's objectives and responsibilities, as per Articles 3 and 4 of the CBB Law.
          (b) Whether an action would address a problematic industry practice.
          (c) Whether the conduct undermines the fairness or integrity of the Kingdom's securities market.
          (d) Whether an action would provide an opportunity for the CBB to address violative conduct targeted to a specific market participant, or group of persons that might not otherwise be familiar with the CBB, or the protections afforded by the securities laws.
          (e) Whether an action would present a good opportunity to coordinate with other regulators or authorities in the Kingdom and overseas authorities.
          (f) Whether the conduct can be addressed by other regulators or authorities.
          (g) Whether an action would alert the investing public of a new type of securities fraud or misconduct.
          (h) The magnitude of the potential violations involved in the investigation, considering:
          (i) The severity and seriousness of the conduct;
          (ii) The length of time the conduct continued, or whether it is ongoing;
          (iii) The number of violations;
          (iv) Whether recidivists were involved;
          (v) Whether violations were repeated;
          (vi) The amount of harm or potential harm to victims;
          (vii) The amount of ill-gotten gains to the violators;
          (viii) Whether victims were specifically targeted based on personal or affinity group characteristics;
          (ix) for capital market service providers, whether the conduct involved officers, directors, or senior management;
          (x) Whether gatekeepers (such as accountants or attorneys) or securities industry professionals are involved.
          (i) The resources required to investigate the potential violations, considering:
          (i) The complexity of the potential violations;
          (ii) The approximate staff man days required over the course of the investigation;
          (iii) The duration of the relevant conduct;
          (iv) The number of potential violators;
          (v) The number and location of potential witnesses;
          (vi) The volume of evidence that the staff must collect and review, such as trading records, corporate documents and email correspondence;
          (vii) The level of analysis required for complex data and evidence, such as auditor workpapers, bluesheets, or financial data;
          (viii) The number and location of witnesses and the scheduling of the examination of persons;
          (ix) Travel requirements.
          (j) Whether there is an urgent need to file an enforcement action, such as an investigation into ongoing fraud or conduct that poses a threat of imminent harm to investigators.
          Amended: July 2021

      • Investigation of Certain Cases

        • MIE-2.2.5

          The combination of the priority given to certain types of misconduct over others and the CBB's risk-based approach to enforcement means that certain cases will be subject to enforcement action and others will not, even where they may be similar in nature or impact. The CBB's choice as to the use of the enforcement tool is therefore a question of how the CBB uses its resources effectively and efficiently and how it ensures that it is an effective regulator.

          Amended: July 2021

        • MIE-2.2.6

          Where unauthorised business poses a significant risk to the investor protection objective or to the CBB's other regulatory objectives, unauthorised activity will be a matter of serious concern for the CBB. The CBB deals with cases of suspected unauthorised activity in a number of ways and it will not use its investigation powers and/or take enforcement action in every single instance.

        • MIE-2.2.7

          The CBB's primary aim in using its investigation and enforcement powers in the context of suspected unauthorised activities is to protect the interests of investors. The CBB's priority will be to confirm whether or not a regulated activity has been carried on in the Kingdom of Bahrain by someone without licensed authorisation or exemption, and if so, the extent of that activity and whether other related contraventions have occurred. It will seek to assess the risk to investors' assets and interests arising from the activity as soon as possible.

        • MIE-2.2.8

          The CBB often takes a different approach to that described above where capital market service providers no longer meet the licensing conditions. The CBB views the licensing conditions as being fundamental requirements for licensing and authorisation and it will generally take action in all such cases which come to its attention and which cannot be resolved through the use of supervisory tools. The CBB does not generally appoint investigators in such cases. Instead, capital market service providers may first be given an opportunity to correct the failure. If the CBB licensee does not take the necessary remedial action, the CBB will consider whether its license to carry out regulated businesses should be varied and/or cancelled. However, there may be cases where the CBB considers that a formal investigation into a licensing condition concern is appropriate.

          Amended: July 2021

        • MIE-2.2.9

          When the CBB has information regarding possible contravention of the Issuing and Offering of Securities Module, or listing rules, or the Disclosure Standards (DIS) Module, or any violation or contravention relating to the primary market, the CBB will use its investigative powers and/or take enforcement action, as deemed fit.

      • Cases where Other Authorities or SROs have an Interest

        • MIE-2.2.10

          Action before or following an investigation may include, for example, referring some issues or information to other authorities or SROs for consideration, including where another authority or SRO appears to be better placed to take action. For example, when considering whether to use its powers to conduct formal investigations into market misconduct, the CBB will take into account whether another regulatory authority or an SRO is in a position to investigate and deal with the matters of concern (as far as a licensed exchange or market operator or licensed clearing house and depository is concerned, the CBB will consider the extent to which the licensed exchange or market operator, or licensed clearing house and depository has adequate and appropriate powers to investigate and deal with a matter itself). Equally, in some cases the CBB may investigate and/or take action in parallel with another domestic or international authority or SRO.

          Amended: July 2021

      • Sources of Cases

        • MIE-2.2.11

          The CBB may be alerted to possible contraventions or breaches by complaints from the public or CBB licensees, or listed companies or issuers of securities by referrals from other authorities, or through its own enquiries and supervisory activities. CBB licensees or listed companies, or issuers of securities may also bring their own contraventions to the CBB's attention, as they are obliged to do so under the CBB Law, rules and regulations.

      • Assisting Overseas Regulators

        • MIE-2.2.12

          Providing assistance upon request by an overseas authority will be governed by Article 122 of the CBB Law and the Cooperation and Exchange of Information with Overseas Authorities (ICO) Module.

    • MIE-2.3 MIE-2.3 Investigation Proceedings

      • Request for Information and Documents

        • MIE-2.3.1

          (a) As per Article 123 of the CBB Law:
          "(i) Any person who is in possession of information or documents relevant to an investigation conducted by the Central Bank or its duly appointed investigator, should promptly present such information or documents upon request by the Central Bank or its duly appointed investigator.
          (ii) If the Central Bank or its duly appointed investigator receives a document according to the requirement imposed under this Chapter, it may:
          •  Take copies or extracts from such document.
          •  Require the person producing the document, or any other relevant person, to provide an explanation of the contents of the document.
          (iii) If the person fails to produce the document required, but he has information about the whereabouts of such document, then he should, upon the request of the Central Bank or its appointed investigator, indicate where the document is located."
          (b) Examination of Persons

          As per Article 124 of the CBB Law:
          "(i) If the Central Bank or its authorised person, for any reason, fails to enter and inspect the premises, offices, or locations of the licensee to obtain any information or necessary documents and data, or if the powers conferred to the Central Bank are not sufficient for it to practice its supervision tasks over the business of the licensee, then the Central Bank may seek a court order upon a petition to enable the authorised investigators to carry out the following:
          •  Entering and inspecting specific premises and obtaining relevant information, data or documents.
          •  Copying or taking extracts of any relevant document information or data.
          •  Compelling any person employed by the licensee to give explanation respecting, or to specify the whereabouts of, any documents, information or data.
          Compelling force may be used, where necessary.
          (ii) If necessary the Central Bank may retain any documents obtained by virtue of the provisions of the previous paragraph for a period not exceeding six months. However, if the procedures of a trial of any person commenced in connection with committing a crime within the period of the specified six months and the procedures of the said trial continued beyond this period, and the mentioned documents prove to be of relevance to such procedures, then the Central Bank may retain such documents up to the end of the said trial procedures, or to any other date determined by the Competent Court."

      • Requirement to Appear for Examination

        • MIE-2.3.2

          (a) Pursuant to Articles 123 and 124 of the CBB Law and for the purpose of an investigation under this Module, the CMSD or its duly appointed investigator may, in writing, require a person:
          (i) To give the CMSD or its duly appointed investigator all reasonable assistance in connection with the investigation; and
          (ii) To appear before an officer of the CMSD or its duly appointed investigator for examination under oath and to answer questions under oath.
          (b) A requirement in writing imposed under paragraph (a) shall state the general nature of the matter referred to in paragraph (a).

      • Proceedings at Examination

        • MIE-2.3.3

          The provisions of section MIE-2.3 shall apply where, pursuant to a requirement made under rule MIE-2.3.2 for the purposes of an investigation under this Module, a person (referred to in this Module as the examinee) appears before another person (referred to in this Module as the investigator) for examination.

      • Requirements Made of Examinee

        • MIE-2.3.4

          (a) Pursuant to the powers provided under Article 123(b) of the CBB Law, the investigator may examine the examinee on oath or affirmation and may, for that purpose, administer an oath or affirmation to the examinee.
          (b) The oath or affirmation to be taken or made by the examinee for the purposes of the examination is an oath or affirmation that the statements that the examinee will make are true.
          (c) The investigator may require the examinee to answer a question that is put to the examinee at the examination and is relevant to a matter that the CMSD is investigating, or is to investigate, under this Module.

      • Examination to Take Place in Private

        • MIE-2.3.5

          (a) The examination shall take place in private and the investigator may give directions as to who may be present during the examination or part thereof.
          (b) A person shall not be present at the examination unless he is:
          (i) The investigator or the examinee;
          (ii) A person approved by the CMSD to be present; or
          (iii) Entitled to be present by virtue of a direction under rule MIE-2.3.5(a).

      • Record of Examination

        • MIE-2.3.6

          (a) The investigator may, and shall if the examinee so requests, cause a record to be made of statements made at the examination.
          (b) If a record made under rule MIE-2.3.6 (a) is in writing, or is reduced to writing:
          (i) The investigator may require the examinee to read the record, or to have it read to him, and may require him to sign it; and
          (ii) The investigator shall, if requested in writing by the examinee to give to the examinee a copy of the written record, comply with the request without charge but subject to such conditions as the investigator may impose.

      • Giving Copies of Record to Other Persons

        • MIE-2.3.7

          (a) The CBB may give a copy of a written record of the examination, or such a copy together with a copy of any related record, or document, or book, to an advocate and solicitor acting on behalf of a person who is carrying on, or is contemplating in good faith, a proceeding in respect of a matter to which the examination relates.
          (b) If the CBB gives a copy to a person under rule MIE-2.3.7 (a), the person, or any other person who has possession, custody or control of the copy, or a copy of it, shall not except in connection with preparing, beginning or carrying on, or in the course of any proceedings:
          (i) Use the copy or a copy of it; or
          (ii) Publish or communicate to a person, the copy, a copy of it, or any part of the copy's contents.
          (c) The CBB may, subject to such conditions or restrictions as it may impose, give to a person a copy of a written record of the examination, or such a copy together with a copy of any related record, or document, or book.
          Amended: July 2021

      • Copies Given Subject to Conditions

        • MIE-2.3.8

          If a copy of a written record, or document, or book is given to a person under rules MIE-2.3.6 (b) or MIE-2.3.7 (c), subject to conditions or restrictions imposed by the CBB, the person and any other person who has possession, custody or control of the copy or a copy of it, shall comply with the conditions.

      • Record to Accompany Report

        • MIE-2.3.9

          (a) If, in the CBB's opinion a statement made at an examination is relevant to any other investigation conducted under this Module;
          (b) If a record of the statement was made under rule MIE-2.3.6; and
          (c) A report about the other investigation is prepared under this Module, a copy of the record shall accompany the report relating to such other investigation submitted to the CBB.

      • Offences

        • MIE-2.3.10

          (a) A person who refuses or fails to comply with the rules MIE-2.3.2 or MIE-2.3.4 (c) may be guilty of an offence punishable under Articles 163 and 170 of the CBB Law.
          (b) A person who:
          (i) Refuses or fails to take an oath or make an affirmation when required to do so by an investigator examining him under this Module;
          (ii) Refuses or fails to comply with a requirement of an investigator under rule MIE-2.3.6 (b) (i); or
          (iii) Refuses or fails to comply with rules MIE-2.3.7 (b) or MIE-2.3.8;
          may be guilty of an offence punishable under Articles 163 and 170 of the CBB Law.
          (c) A person who, in purported compliance with the provisions of this Module, or in the course of examination of the person, furnishes information or makes a statement that is false or misleading in a material particular may be guilty of an offence punishable under Articles 163 and 170 of the CBB Law.
          (d) It may be a defence to prosecution for an offence under paragraph (c) if the defendant proves that he believed on reasonable grounds that the information or statement was true and was not misleading.
          (e) A person who obstructs or hinders the CBB or another person in the exercise of any power under this Module or the CBB Law, may be guilty of an offence punishable under Articles 163 and 170 of the CBB Law.
          Amended: July 2021

      • Powers to Obtain Information

        • MIE-2.3.11

          Power of Authority to order Production of Records, or Documents or Books

          Without prejudice to rule MIE-2.3.1 and for the purpose of an investigation under this Module, the CBB may in writing, require any person at a specified time and place to provide information or produce records, or documents, or books relating to any matter under investigation, and such person shall comply with that requirement.

        • MIE-2.3.12

          Application for Warrant to Seize Records, or Documents, or Books Not Produced

          (a) Where the CBB has reasonable grounds to suspect that there is, on any particular premises, any record, or document, or book the production of which has been required under rule MIE-2.3.11, and:
          (i) Which has not been produced in compliance with that requirement; or
          (ii) Which the CBB has reasonable grounds to believe will not be produced in compliance with that requirement,
          the CBB may apply to a court for the issue of a warrant authorising the CBB to search the premises for such record, or document, or book, with or without compelling force:
          (iii) To enter and search the premises and to break open and search anything, whether a fixture or not, in the premises; and
          (iv) To take possession of or secure against interference, any record, or document, or book that appears to be a record, or document, or book, the production of which was so required.
          (b) The powers conferred under paragraph (a) are in addition and not in derogation of any other powers conferred by any other written law or rule of law.
          (c) In this Module, "premises" includes any structure, building, aircraft, vehicle or vessel.

        • MIE-2.3.13

          Powers Where Records, or Documents, or Books are Produced or Seized

          (a) This rule shall apply where:
          (i) Records, or documents, or books are produced to the CBB under a requirement made under rule MIE-2.3.11;
          (ii) Under a warrant issued under rule MIE-2.3.12, the CBB or a person named therein:
          •  Takes possession of records, or documents, or books; or
          •  Secures records, or documents, or books against interference; or
          (iii) Under a previous application of rule MIE-2.3.13 (f) of this section, records, or documents, or books are delivered into the possession of the CBB or a person authorised by it.
          (b) If paragraph (a) (i) applies, the CBB may take possession of any of the records, or documents, or books.
          (c) The CBB or, where applicable, a person referred to in paragraph (a) (ii) may:
          •  Examine, and may make copies of or take extracts from, any of the records, or documents, or books;
          •  Use or permit the use of any of the records, or documents, or books for the purposes of any proceedings; and
          •  Retain possession of any of the records, or documents, or books for so long as is necessary.
          (i) For the purposes of exercising a power conferred by this rule (other than paragraph (e));
          (ii) For a decision to be made about whether or not any proceedings to which the records, or documents, or books concerned would be relevant should be instituted; or
          (iii) For such proceedings to be instituted and carried on.
          (d) No person shall be entitled as against the CBB or, where applicable, a person referred to in paragraph (a) (ii) to claim a lien on any of the records, or documents, or books, but such a lien is not otherwise prejudiced.
          (e) While the records, or documents, or books are in the possession of the CBB or where applicable, the person referred to in paragraph (a) (ii) the CBB or person:
          (i) Shall permit another person to inspect at all reasonable times such of the records, or documents, or books (if any) as the second-mentioned person would be entitled to inspect if they were not in possession of the CBB or the first-mentioned person; and
          (ii) May permit any other person to inspect any of the records, or documents, or books.
          (f) Unless paragraph (a) (ii) applies, a person referred to in paragraph (a) (ii) may deliver any of the records, or documents, or books into the possession of the CBB or of a person authorised by the CBB to receive them.
          (g) Where paragraphs (a) (i) or (ii) applies, the CBB, a person referred to in paragraph (a) (ii), or a person into whose possession the records, or documents, or books are delivered under paragraph (f) may require:
          (i) If paragraph (a) (i) applies, a person who so produced any of the records, or documents, or books; or
          (ii) In any other case, a person who was a party to the compilation of any of the records, or documents, or books, to explain to the best of his knowledge and belief any matter about the compilation of any of the records, or documents, or books, or to which any of the records, or documents, or books relate.

        • MIE-2.3.14

          Powers where Records, or Documents, or Books are not Produced

          Where a person fails to comply with a requirement imposed by the CBB under rule MIE-2.3.11 to produce any record, or document, or book, the CBB may require the person to state to the best of his knowledge and belief:

          (a) The place where such record, or document, or book may be found; and
          (b) The person who last had possession, custody or control of such record, or document, or book and the place where that person may be found.

        • MIE-2.3.15

          Copies of or Extracts from Records, or Documents, or Books to be Admitted in Evidence

          (a) Subject to this rule, a copy of or extract from a record, or document, or book referred to in this rule that is proved to be a true copy of the record, or document, or book, or of the relevant part of the record, or document, or book is admissible in evidence as if it were the original record, or document, or book or the relevant part of the original record, or document, or book.
          (b) For the purposes of paragraph (a), evidence that a copy of or extract from a record, or document, or book is a true copy of the record, or document, or book, or of a part of the record, or document, or book, may be given by a person who has compared the copy or extract with the record, or document, or book, or the relevant part of the original record, or document, or book and may be given orally or by an affidavit sworn, or by a declaration made before a person authorised to take affidavits or statutory declarations.

        • MIE-2.3.16

          Offences

          (a) A person who refuses or fails to comply with any requirement imposed under rules MIE-2.3.11, MIE-2.3.13 (g), or MIE-2.3.14 may be guilty of an offence punishable under Articles 163 and/or 170 of the CBB Law.
          (b) A person who in purported compliance with a requirement under this rule, furnishes information or makes a statement that is false or misleading in a material particular may be guilty of an offence punishable under Articles 163 and/or 170 of the CBB Law.
          (c) It may be a defence to the prosecution for an offence under paragraph (b) if the defendant proves that he believed on reasonable grounds that the information or statement was true and not misleading.
          (d) Any person who conceals, destroys, mutilates or alters any record, or document, or book relating to a matter that the CBB is investigating or about to investigate under this Module, or who, where such a record, or document, or book is within the territory of the Kingdom of Bahrain, takes or sends the record, or document, or book out of Bahrain, may be guilty of an offence punishable under Articles 163 and/or 170 of the CBB Law.
          (e) A person who, obstructs or hinders the CBB in the exercise of any power under this rule, or obstructs or hinders a person who is executing a warrant issued under rule MIE-2.3.12, may be guilty of an offence punishable under Articles 163 and/or 170 of the CBB Law.
          (f) The occupier or the person in charge of the premises that a person enters under a warrant issued under rule MIE-2.3.12 who fails to provide to that person all reasonable facilities and assistance for the effective exercise of his powers under the warrant may be guilty of an offence punishable under Articles 163 and/or 170 of the CBB Law.

      • Information and Records from Telecommunications Operators

        • MIE-2.3.17

          Access to Records of Telecommunication Companies and Internet Service Providers

          As per Article 123 of the CBB Law, if it appears to the CMSD or its duly appointed investigator that the records, information, documents and data recorded in electronic format or otherwise is available, or likely to be available with the telecommunications service providers or internet service providers, and these are relevant to an investigation conducted by the CMSD, then the CMSD or its duly appointed investigator may request the Telecommunications Regulatory Authority of the Kingdom of Bahrain to use its powers under the telecommunication laws, rules and regulations to obtain such records or information, or documents or data. Such records, information, documents or data should be provided by such telecommunications service providers or internet service providers, who should promptly present such records, information, documents and data for the purpose of the CMSD's investigation.

    • MIE-2.4 MIE-2.4 Investigation Report

      • MIE-2.4.1

        The investigator appointed by the CBB to conduct an investigation shall, on completion of the investigation, after taking into account all relevant findings, conclusions, facts and evidence, submit a report to the CBB, provided that the investigator shall submit an interim report pending completion of investigations if he considers necessary in the interest of investors and the securities market, or as directed by the CBB.

      • MIE-2.4.2

        The investigation report shall be submitted to the CMSD.

      • MIE-2.4.3

        The CMSD may, after considering the investigation report and the facts and evidence of the case and if satisfied that there is contravention of the CBB Law, rules and regulations, or any other applicable laws, rules and regulations, decide to initiate appropriate enforcement actions. This is without prejudice to the powers of the CBB to take interim and other enforcement actions before conducting formal investigations, or before receipt of a final investigation report.

      • MIE-2.4.4

        Apart from initiating appropriate enforcement actions referred to in paragraph MIE-2.4.3, the CMSD may make referrals to SROs or other regulators and authorities in the Kingdom of Bahrain, as well as to the overseas regulators and authorities, particularly in respect of contraventions which can be addressed by such other domestic or overseas regulators/authorities.

        Amended: July 2021

    • MIE-2.5 MIE-2.5 Judicial Investigation

      • MIE-2.5.1

        Article 115 of the CBB Law states that: "The officers of the Central Bank who are appointed by a resolution issued by the Minister of Justice and Islamic Affairs in agreement with the Governor, shall have the capacity of Judicial Investigation Officers with respect to criminal offences that fall under their jurisdiction and relevant to the duties assigned to them. The verbal process of such crimes prepared by the said officials should be referred to the public prosecution pursuant to a resolution to be issued by the Governor or any person he may authorise".

      • MIE-2.5.2

        The CBB may suggest that the Minister of Justice and Islamic Affairs appoint any of the officers of the CMSD as Judicial Investigation Officers with respect to criminal offences relating to the securities market or the offences covered by the scope of this Module. Judicial investigation undertaken by the officials of the CMSD, either jointly with the officers of the Ministry of Justice and Islamic Affairs, or otherwise, shall submit an investigation report to the CMSD, giving details of contraventions and offences of the CBB Law, rules and regulations, along with all relevant information and evidence.

        Amended: July 2021

      • MIE-2.5.3

        The CMSD may, after considering the investigation report submitted to the CMSD officers who conducting the judicial investigation, and if satisfied that there is a contravention of the CBB Law, rules and regulations, decide to initiate appropriate enforcement actions.