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  • AML-1.6 AML-1.6 Enhanced Due Diligence: Charities, Clubs and Other Societies

    • AML-1.6.1

      Capital market services must not be provided to charitable funds and religious, sporting, social, cooperative and professional and other societies, until an original certificate authenticated by the relevant Ministry confirming the identities of those purporting to act on their behalf (and authorising them to obtain the said service) has been obtained. For clubs and societies registered with the General Organisation for Youth and Sports (GOYS), Capital Market Licensees must contact GOYS to clarify whether the account may be opened in accordance with the rules of GOYS.

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

    • AML-1.6.2

      Capital Market Licensees are reminded that clubs and societies registered with GOYS may only have one account with banks in Bahrain.

      Amended: January 2022
      Added: October 2010

    • AML-1.6.3

      Charities should be subject to enhanced transaction monitoring by Capital Market Licensees. Capital Market Licensees should develop a profile of anticipated account activity (in terms of payee countries and recipient organizations in particular).

      Amended: January 2022
      Added: October 2010

    • AML-1.6.4

      Capital Market Licensees must provide a monthly report of all payments and transfers of BD3,000 (or equivalent in foreign currencies) and above, from accounts held by charities registered in Bahrain. The report must be submitted to the CBB's Compliance Unit (see section AML-4.4 for contact address), giving details of the amount transferred, account name, number and beneficiary name account and bank details. Capital Market Licensees must ensure that such transfers are in accordance with the spending plans of the charity (in terms of amount, recipient and country).

      Amended: January 2022
      Added: October 2010

    • AML-1.6.5

      Article 20 of Decree Law No. 21 of 1989 (issuing the Law of Social and Cultural Societies and Clubs and Private Organisations Operating in the Area of Youth and Sport and Private Institutions) provides that Capital Market Licensees may not accept or process any incoming or outgoing wire transfers from or to any foreign country on behalf of charity and non-profit organisations licensed by the Ministry of Social Development, until an official letter by the Ministry authorising the receipt or remittance of the funds has been obtained by the concerned Capital Market Licensees.

      Amended: January 2022
      Added: October 2010

    • AML-1.6.6

      The receipt of a Ministry letter mentioned in rule AML-1.6.5 above does not exempt the concerned Capital Market Licensees from conducting normal CDD measures as outlined in other parts of this Module.

      Amended: January 2022
      Added: October 2010