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) Anyperson who is in possession of information or documents relevant to aninvestigation conducted by the Central Bank or its duly appointedinvestigator , should promptly present such information or documents upon request by the Central Bank or its duly appointedinvestigator .(ii) If the Central Bank or its duly appointedinvestigator receives a document according to the requirement imposed under this Chapter, it may:• Take copies or extracts from such document.• Require theperson producing the document, or any other relevantperson , to provide an explanation of the contents of the document.(iii) If theperson 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 appointedinvestigator , 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 authorisedperson , 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 authorisedinvestigators 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 anyperson 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 anyperson 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 aninvestigation under this Module, theCMSD or its duly appointedinvestigator may, in writing, require aperson :(i) To give theCMSD or its duly appointedinvestigator all reasonable assistance in connection with theinvestigation ; and(ii) To appear before an officer of theCMSD or its duly appointedinvestigator 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, aperson (referred to in this Module as the examinee) appears before anotherperson (referred to in this Module as theinvestigator ) for examination.Requirements Made of Examinee
MIE-2.3.4
(a) Pursuant to the powers provided under Article 123(b) of the CBB Law, theinvestigator 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) Theinvestigator may require the examinee to answer a question that is put to the examinee at the examination and is relevant to a matter that theCMSD 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 theinvestigator may give directions as to who may be present during the examination or part thereof.(b) Aperson shall not be present at the examination unless he is:(i) Theinvestigator or the examinee;(ii) Aperson approved by theCMSD 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) Theinvestigator 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) Theinvestigator may require the examinee to read the record, or to have it read to him, and may require him to sign it; and(ii) Theinvestigator 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 theinvestigator 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 aperson 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 aperson under rule MIE-2.3.7 (a), theperson , or any otherperson 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 aperson , 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 aperson 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 2021Copies 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, theperson and any otherperson 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 otherinvestigation 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 otherinvestigation is prepared under this Module, a copy of the record shall accompany the report relating to such otherinvestigation submitted to the CBB.Offences
MIE-2.3.10
(a) Aperson 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) Aperson who:(i) Refuses or fails to take an oath or make an affirmation when required to do so by aninvestigator examining him under this Module;(ii) Refuses or fails to comply with a requirement of aninvestigator under rule MIE-2.3.6 (b) (i); or(c) Aperson who, in purported compliance with the provisions of this Module, or in the course of examination of theperson, 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) Aperson who obstructs or hinders the CBB or anotherperson 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 2021Powers 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 anyperson at a specified time and place to provide information or produce records, or documents, or books relating to any matter underinvestigation , and suchperson 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 aperson 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 aperson 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, aperson 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) Noperson shall be entitled as against the CBB or, where applicable, aperson 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, theperson referred to in paragraph (a) (ii) the CBB orperson :(i) Shall permit anotherperson to inspect at all reasonable times such of the records, or documents, or books (if any) as the second-mentionedperson would be entitled to inspect if they were not in possession of the CBB or the first-mentionedperson; and(ii) May permit any otherperson to inspect any of the records, or documents, or books.(f) Unless paragraph (a) (ii) applies, aperson referred to in paragraph (a) (ii) may deliver any of the records, or documents, or books into the possession of the CBB or of aperson authorised by the CBB to receive them.(g) Where paragraphs (a) (i) or (ii) applies, the CBB, aperson referred to in paragraph (a) (ii), or aperson into whose possession the records, or documents, or books are delivered under paragraph (f) may require:(i) If paragraph (a) (i) applies, aperson who so produced any of the records, or documents, or books; or(ii) In any other case, aperson 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 theperson 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) Theperson who last had possession, custody or control of such record, or document, or book and the place where thatperson 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 aperson 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 aperson authorised to take affidavits or statutory declarations.MIE-2.3.16
Offences
(a) Aperson 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) Aperson 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) Anyperson 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) Aperson who, obstructs or hinders the CBB in the exercise of any power under this rule, or obstructs or hinders aperson 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 theperson in charge of the premises that aperson enters under a warrant issued under rule MIE-2.3.12 who fails to provide to thatperson 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 appointedinvestigator 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 aninvestigation conducted by theCMSD , then theCMSD or its duly appointedinvestigator 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 theCMSD's investigation .