• 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 to Capital 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 2010

        • AML-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 assist Capital Market Licensees monitor transactions and fulfil their reporting obligations under Bahrain Law and this Module.

          Amended: January 2022
          October 2010

      • Legal 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 2010

        • AML-A.1.4

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see section UG-1.1.

          October 2010

    • AML-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 2010

        • AML-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 of Securities, custodians of Securities, banks accredited for clearance of transactions carried out at the BSE, dealers in Securities, and all other entities concerned with dealing in Securities.

          October 2010

        • AML-A.2.3

          A list of recent changes made to this Module is detailed in the table below:

          Module Ref.Change DateDescription of Changes
          AML-A.1.307/2011Clarified legal basis.
          AML-7.107/2011Clarified the Rules dealing with substantial shareholdings.
          AML-4.2.310/2014Updated method of submitting STRs.
          AML-4.410/2014Updated relevant authorities information.
          AML07/2016Updated to reflect February 2012 update to FATF Recommendations.
          AML-4.2.307/2016Updated instructions for STR.
          AML-1.2.9A01/2017Added guidance paragraph on CR printing
          AML-9.2.1AA04/2017Added Paragraph on Implementing and complying with the United Nations Security Council resolutions requirement.
          AML-1.1.2A10/2017Added new paragraph on the verification of identity and source of funds.
          AML-1.1.2B10/2017Added new paragraph on the verification of identity and source of funds.
          AML-1.2.710/2017Amended paragraph.
          AML-1.2.8A10/2017Added new paragraph on legal entities or legal arrangements CDD.
          AML-2.2.10 – AML-2.2.1110/2017Amended paragraphs on On-going CSS and Transaction Monitoring.
          AML-3.1.4A10/2017Added paragraph on combining the MLRO or DMLRO position with any other position within the licensee.
          AML-B.2.401/2018Amended paragraph.
          AML-1.8.101/2018Amended paragraph.
          AML-1.10.101/2018Deleted sub-paragraph (a).
          AML-4.2.601/2018Amended paragraph.
          AML-9.1.401/2018Amended paragraph.
          AML-9.2.201/2018Deleted paragraph.
          AML-1.1.207/2018Deleted Sub-paragraph (a).
          AML-1.10.207/2018Amended Paragraph deleting cross reference.
          AML-1.10.307/2018Deleted Paragraph.
          AML-1.10.907/2018Deleted Paragraph.
          AML-1.10.101/2019Amended references.
          AML-3.3.201/2019Amended references.
          AML-3.3.4 — AML-3.3.501/2019Amended references.
          AML-1.2.9A10/2019Amended reference.
          AML-1.9.210/2019Amended authority name.
          AML-3.1.810/2019Amended authority name.
          AML-3.2.110/2019Amended authority name.
          AML-4.2.310/2019Amended authority name.
          AML-4.4.210/2019Amended authority name.
          AML-7.1.210/2019Deleted Paragraph.
          AML-9.2.1AA10/2019Added a new Paragraph on Terrorist Financing.
          AML-B.1.101/2020Added “ crypto-asset licensees”.
          AML-B.1.301/2020Deleted Paragraph.
          AML-B.301/2020Deleted Section.
          AML-C01/2020Added new Chapter “Risk Based Approach”.
          AML-101/2020Rename the Chapter to “Customer Due Diligence”.
          AML-1.1.101/2020Amended Paragraph on procedures approval.
          AML-1.1.201/2020Added sub-paragraph (i).
          AML-1.1.14 – AML-1.1.1601/2020Added new paragraphs on “Suspicious Wallet Addresses”.
          AML-1.2.101/2020Added sub-paragraph (n).
          AML-1.2.501/2020Added new sub-paragraph (f).
          AML-1.3.401/2020Added new paragraph.
          AML-1.4.701/2020Added new paragraph.
          AML-1.5.401/2020Deleted paragraph.
          AML-1.901/2020Rename the section to “Shell financial Institutions”.
          AML-1.9.101/2020Amended paragraph.
          AML-1.1101/2020Added new section “Enhanced Due Diligence for Correspondent Accounts”
          AML-2.2.101/2020Amended Paragraph.
          AML-2A01/2020Added new chapter.
          AML-3.1.501/2020Amended Paragraph.
          AML-3.1.5A01/2020Added Paragraph.
          AML-3.1.701/2020Amended sub-Paragraph (a).
          AML-3.3.201/2020Amended Paragraph.
          AML-3.3.501/2020Amended Paragraph on report submission date.
          AML-3.3.2A – AML-3.3.2E01/2020Added Paragraphs.
          AML-6.1.1A – AML-6.1.1C01/2020Added Paragraphs.
          AML-8.1.101/2020Deleted Paragraph.
          AML-8.1.1A01/2020Added Paragraph.
          AML-11.1.201/2020Added Paragraph.
          AML-2.1.3 & AML-2.1.404/2020Added new Paragraphs on KPIs compliance with AML/CFT requirements.
          AML-5.1.6A01/2021Added a new Paragraph on requirements to hire new employees.
          AML-A.1.301/2022Amended Paragraph to replace financial crime with money laundering and terrorism financing.
          AML-C01/2022New revised risk-based approach (RBA).
          AML-1.101/2022Amended 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-1.201/2022Amended Section to include E-KYC and electronic documents law requirements.
          AML-1.3.201/2022Amended Paragraph on enhanced due diligence requirements for customers identified as having higher risk profile.
          AML-1.401/2022Amended Section to introduce detailed requirements for digital onboarding and related requirements.
          AML-1.5.201/2022Amended Paragraph on onboarding non-Bahraini PEPs using digital ID applications.
          AML-1.10.8A01/2022Added a new Paragraph on not applying simplified CDD in situations where the licensee has identified high ML/TF/PF risks.
          AML-2.2.501/2022Amended Paragraph.
          AML-3.3.1B01/2022Amended Paragraph.
          AML-3.3.201/2022Amended Paragraph.
          AML-3.3.501/2022Amended Paragraph.
          AML-3.3.601/2022Deleted Paragraph.
          AML-5.1.6A01/2022Deleted Paragraph.
          AML-9.2.501/2022Amended reference to Paragraph.
          AML01/2022Changed Licensee name to Capital Market Licensees across Module.
          AML-C.2.901/2023Minor amendment to Paragraph.
          AML-9.2.4(c)01/2023Added a new Sub-paragraph on reporting any frozen assets or actions taken.
          AML-1.1.1710/2023Amended Sub-Paragraph on the enhanced diligence for the non-resident accounts.
          AML-1.1.2310/2023Deleted Paragraph.
          AML-1.1.2410/2023Added a new Paragraph on CDD and Customer onboarding requirements.
          AML-1.4.1410/2023Deleted Paragraph.
          AML-1.1210/2023Added a new Section on reliance on third parties for customer due diligence.
          AML-1.2.101/2024Amended 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 2010

    • AML-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