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  • AML-B AML-B Scope of Application

    • AML-B.1 AML-B.1 Scope of Application

      • AML-B.1.1

        This Module contains the CBB's Directive relating to Anti-Money Laundering and Combating of Financial Crime and is issued under the powers available to the CBB under Article 38 of the CBB Law. The Directive under this Module is applicable to all Capital Market Licensees and relevant Persons, including but not limited to issuers of Securities or any Person acting on their behalf, licensed exchanges, licensed market operators, licensed clearing houses, depositories, investment firms, collective investment undertakings, business trusts, listed companies, crypto-asset licensees, any Person acting for or on behalf of listed companies, Persons accredited with receiving money relating to the subscription of Securities, custodian of Securities, settlement banks, dealers in Securities, share registrars, lead managers, underwriters, professional advisors, listing agents, auditors, financial analysts, credit rating agencies and any other Person concerned with dealing in Securities, irrespective of whether such Person is a Capital Market Licensees or not. These rules are issued by way of a legally-binding Directive.

        Amended: January 2022
        Amended: January 2020
        Added: October 2010

      • AML-B.1.2

        Capital Market Licensees that are subsidiaries of an overseas based group may apply additional AML/CFT policies and procedures, provided they satisfy the minimum requirements contained in this Module.

        Amended: January 2022
        Added: October 2010

      • AML-B.1.3

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.1.4

        The requirements of this Module are in addition to and supplement Decree Law No. (4) of 2001 with respect to the Prevention and Prohibition of the Laundering of Money; this Law was subsequently updated, with the issuance of Decree Law No. 54 of 2006 with respect to amending certain provisions of Decree No. 4 of 2001 (collectively, 'the AML Law'). The AML Law imposes obligations generally in relation to the prevention of money laundering and the combating of the financing of terrorism, to all Persons resident in Bahrain (including financial services firms such as Capital Market Licensees). All Capital Market Licensees are therefore under the statutory obligations of that Law, in addition to the more specific requirements contained in this Module. Nothing in this Module is intended to restrict the application of the AML Law (a copy of which is contained in Part B of Volume 6 Capital Markets), under 'Supplementary Information'. Also included in Part B is a copy of Decree Law No. 58 of 2006 with respect to the protection of society from terrorism activities ('the anti-terrorism law').

        Amended: January 2022
        Added: October 2010

    • AML-B.2 AML-B.2 Overseas Subsidiaries and Branches

      • AML-B.2.1

        Capital Market Licensees must apply the requirements in this Module to all their branches and subsidiaries operating both in the Kingdom of Bahrain and in foreign jurisdictions. Where local standards differ, the higher standard must be followed. Capital Market Licensees must pay particular attention to procedures in branches or subsidiaries in countries that do not or insufficiently apply the FATF Recommendations and do not have adequate AML/CFT procedures, systems and controls (see also Section AML-9.1).

        Amended: January 2022
        Amended: July 2016
        Added: October 2010

      • AML-B.2.2

        Where another jurisdiction's laws or regulations prevent a Capital Market Licensee (or any of its foreign branches or subsidiaries) from applying the same standards contained in this Module or higher, the Capital Market Licensee must immediately inform the CBB in writing.

        Amended: January 2022
        Added: October 2010

      • AML-B.2.3

        In such instances, the CBB will review alternatives with the Capital Market Licensees. Should the CBB and the Capital Market Licensees be unable to reach agreement on the satisfactory implementation of this Module in a foreign subsidiary or branch, the Capital Market Licensees may be required by the CBB to cease the operations of the subsidiary or branch in the foreign jurisdiction in question.

        Amended: January 2022
        Added: October 2010

      • AML-B.2.4

        Financial groups must implement groupwide programmes against money laundering and terrorist financing, including policies and procedures for sharing information within the group for AML/CFT purposes, which must also be applicable, and appropriate to, all branches and subsidiaries of the financial group. These must include:

        (a) The development of internal policies, procedures and controls, including appropriate compliance management arrangements, and adequate screening procedures to ensure high standards when hiring employees;
        (b) An ongoing employee training programme;
        (c) An independent audit function to test the system;
        (d) Policies and procedures for sharing information required for the purposes of CDD and money laundering and terrorist financing risk management;
        (e) The provision at group-level compliance, audit, and/or AML/CFT functions of customer, account and transaction information from branches and subsidiaries when necessary for AML/CFT purposes; and
        (f) Adequate safeguards on the confidentiality and use of information exchanged.
        Amended: January 2018
        Added: July 2016

    • AML-B.3 AML-B.3 Definitions [This Section was deleted in January 2020]

      Deleted: January 2020
      Added: October 2010

      • AML-B.3.1

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.2

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.3

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.4

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.5

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Amended: July 2016
        Added: October 2010

      • AML-B.3.6

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Amended: July 2016
        Added: October 2010

      • AML-B.3.7

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.8

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.9

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010

      • AML-B.3.10

        [This Paragraph was deleted in January 2020].

        Deleted: January 2020
        Added: October 2010