AML-A AML-A Introduction
AML-A.1 AML-A.1 Purpose
Executive Summary
AML-A.1.1
This Module is a comprehensive framework of rules and guidance aimed at combating money laundering and terrorist financing and applies to all
Capital Market Licensees . In so doing, it helps implement the FATF Recommendations on combating money laundering and financing of terrorism and proliferation, issued by the Financial Action Task Force (FATF), that are relevant toCapital Market Licensees . It also helps implement IOSCO guidance in this area. The Module also contains measures relating to the combating of fraud in the capital market.Amended: January 2022
Amended: July 2016
October 2010AML-A.1.2
The Module requires
Capital Market Licensees to have effective anti-money laundering ('AML') policies and procedures, in addition to measures for combating the financing of terrorism ('CFT'). The Module contains detailed requirements relating to customer due diligence, reporting and the role and duties of the Money Laundering Reporting Officer (MLRO). Furthermore, examples of suspicious activity are provided, to assistCapital Market Licensees monitor transactions and fulfil their reporting obligations under Bahrain Law and this Module.Amended: January 2022
October 2010Legal Basis
AML-A.1.3
This Module contains the Central Bank of Bahrain ('CBB') Directive (as amended from time to time) regarding the combating money laundering and terrorism financing and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all
Capital Market Licensees .Amended: January 2022
Amended: July 2011
October 2010AML-A.1.4
For an explanation of the CBB's rule-making powers and different regulatory instruments, see section UG-1.1.
October 2010AML-A.2 AML-A.2 Module History
Evolution of Module
AML-A.2.1
This Module was first issued in October 2010. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change is made; Chapter UG-3 provides further details on Rulebook maintenance and version control.
October 2010AML-A.2.2
Prior to the introduction of this Module, the CBB had issued various regulatory instruments containing requirements covering different aspects of financial crime. The CBB issued Ministerial Order No. 1 of 2004 with Respect to Directives Relating to the Prevention & Prohibition of Money Laundering at the Bahrain Stock Exchange (BSE) and this Order was applicable to the BSE, issuers of
Securities , brokerage firms and offices, registration offices, issue underwriters, establishments accredited with receiving money relating to the subscription ofSecurities , custodians ofSecurities , banks accredited for clearance of transactions carried out at the BSE, dealers inSecurities , and all other entities concerned with dealing inSecurities .October 2010AML-A.2.3
A list of recent changes made to this Module is detailed in the table below:
Module Ref. Change Date Description of Changes AML-A.1.3 07/2011 Clarified legal basis. AML-7.1 07/2011 Clarified the Rules dealing with substantial shareholdings. AML-4.2.3 10/2014 Updated method of submitting STRs. AML-4.4 10/2014 Updated relevant authorities information. AML 07/2016 Updated to reflect February 2012 update to FATF Recommendations. AML-4.2.3 07/2016 Updated instructions for STR. AML-1.2.9A 01/2017 Added guidance paragraph on CR printing AML-9.2.1AA 04/2017 Added Paragraph on Implementing and complying with the United Nations Security Council resolutions requirement. AML-1.1.2A 10/2017 Added new paragraph on the verification of identity and source of funds. AML-1.1.2B 10/2017 Added new paragraph on the verification of identity and source of funds. AML-1.2.7 10/2017 Amended paragraph. AML-1.2.8A 10/2017 Added new paragraph on legal entities or legal arrangements CDD. AML-2.2.10 – AML-2.2.11 10/2017 Amended paragraphs on On-going CSS and Transaction Monitoring. AML-3.1.4A 10/2017 Added paragraph on combining the MLRO or DMLRO position with any other position within the licensee. AML-B.2.4 01/2018 Amended paragraph. AML-1.8.1 01/2018 Amended paragraph. AML-1.10.1 01/2018 Deleted sub-paragraph (a). AML-4.2.6 01/2018 Amended paragraph. AML-9.1.4 01/2018 Amended paragraph. AML-9.2.2 01/2018 Deleted paragraph. AML-1.1.2 07/2018 Deleted Sub-paragraph (a). AML-1.10.2 07/2018 Amended Paragraph deleting cross reference. AML-1.10.3 07/2018 Deleted Paragraph. AML-1.10.9 07/2018 Deleted Paragraph. AML-1.10.1 01/2019 Amended references. AML-3.3.2 01/2019 Amended references. AML-3.3.4 — AML-3.3.5 01/2019 Amended references. AML-1.2.9A 10/2019 Amended reference. AML-1.9.2 10/2019 Amended authority name. AML-3.1.8 10/2019 Amended authority name. AML-3.2.1 10/2019 Amended authority name. AML-4.2.3 10/2019 Amended authority name. AML-4.4.2 10/2019 Amended authority name. AML-7.1.2 10/2019 Deleted Paragraph. AML-9.2.1AA 10/2019 Added a new Paragraph on Terrorist Financing. AML-B.1.1 01/2020 Added “ crypto-asset licensees”. AML-B.1.3 01/2020 Deleted Paragraph. AML-B.3 01/2020 Deleted Section. AML-C 01/2020 Added new Chapter “Risk Based Approach”. AML-1 01/2020 Rename the Chapter to “Customer Due Diligence”. AML-1.1.1 01/2020 Amended Paragraph on procedures approval. AML-1.1.2 01/2020 Added sub-paragraph (i). AML-1.1.14 – AML-1.1.16 01/2020 Added new paragraphs on “Suspicious Wallet Addresses”. AML-1.2.1 01/2020 Added sub-paragraph (n). AML-1.2.5 01/2020 Added new sub-paragraph (f). AML-1.3.4 01/2020 Added new paragraph. AML-1.4.7 01/2020 Added new paragraph. AML-1.5.4 01/2020 Deleted paragraph. AML-1.9 01/2020 Rename the section to “Shell financial Institutions”. AML-1.9.1 01/2020 Amended paragraph. AML-1.11 01/2020 Added new section “Enhanced Due Diligence for Correspondent Accounts” AML-2.2.1 01/2020 Amended Paragraph. AML-2A 01/2020 Added new chapter. AML-3.1.5 01/2020 Amended Paragraph. AML-3.1.5A 01/2020 Added Paragraph. AML-3.1.7 01/2020 Amended sub-Paragraph (a). AML-3.3.2 01/2020 Amended Paragraph. AML-3.3.5 01/2020 Amended Paragraph on report submission date. AML-3.3.2A – AML-3.3.2E 01/2020 Added Paragraphs. AML-6.1.1A – AML-6.1.1C 01/2020 Added Paragraphs. AML-8.1.1 01/2020 Deleted Paragraph. AML-8.1.1A 01/2020 Added Paragraph. AML-11.1.2 01/2020 Added Paragraph. AML-2.1.3 & AML-2.1.4 04/2020 Added new Paragraphs on KPIs compliance with AML/CFT requirements. AML-5.1.6A 01/2021 Added a new Paragraph on requirements to hire new employees. AML-A.1.3 01/2022 Amended Paragraph to replace financial crime with money laundering and terrorism financing. AML-C 01/2022 New revised risk-based approach (RBA). AML-1.1 01/2022 Amended Section to introduce additional rules for non-resident customers, amendments to customers onboarded prior to full completion of customer due diligence, digital onboarding etc. AML-1.2 01/2022 Amended Section to include E-KYC and electronic documents law requirements. AML-1.3.2 01/2022 Amended Paragraph on enhanced due diligence requirements for customers identified as having higher risk profile. AML-1.4 01/2022 Amended Section to introduce detailed requirements for digital onboarding and related requirements. AML-1.5.2 01/2022 Amended Paragraph on onboarding non-Bahraini PEPs using digital ID applications. AML-1.10.8A 01/2022 Added a new Paragraph on not applying simplified CDD in situations where the licensee has identified high ML/TF/PF risks. AML-2.2.5 01/2022 Amended Paragraph. AML-3.3.1B 01/2022 Amended Paragraph. AML-3.3.2 01/2022 Amended Paragraph. AML-3.3.5 01/2022 Amended Paragraph. AML-3.3.6 01/2022 Deleted Paragraph. AML-5.1.6A 01/2022 Deleted Paragraph. AML-9.2.5 01/2022 Amended reference to Paragraph. AML 01/2022 Changed Licensee name to Capital Market Licensees across Module. AML-C.2.9 01/2023 Minor amendment to Paragraph. AML-9.2.4(c) 01/2023 Added a new Sub-paragraph on reporting any frozen assets or actions taken. AML-1.1.17 10/2023 Amended Sub-Paragraph on the enhanced diligence for the non-resident accounts. AML-1.1.23 10/2023 Deleted Paragraph. AML-1.1.24 10/2023 Added a new Paragraph on CDD and Customer onboarding requirements. AML-1.4.14 10/2023 Deleted Paragraph. AML-1.12 10/2023 Added a new Section on reliance on third parties for customer due diligence. AML-1.2.1 01/2024 Amended Paragraph on customer due diligence. Superseded Requirements
AML-A.2.4
This Module supersedes the following provisions contained in Circulars or other regulatory instruments:
Circular/other references Provision Subject Resolution No. 1 of 2004 All In respect of the Directives Relating to the Prevention and Prohibition of Money Laundering at the Bahrain Stock Exchange October 2010AML-A.3 AML-A.3 Interaction with Other Modules
AML-A.3.1
All
Capital Market Licensees must comply with all the other relevant Modules in Volume 6 in addition to other applicable laws, rules and regulations.Amended: January 2022
October 2010