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  • 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.