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  • 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