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  • AML-1.10 AML-1.10 Simplified Customer Due Diligence

    • AML-1.10.1

      Capital Market Licensees may apply simplified customer due diligence measures, as described in paragraphs AML-1.10.2 to AML-1.10.8, if:

      (a) [This Subparagraph was deleted in January 2018];
      (b) The transaction concerns the sale of a Security listed on a licensed exchange, issued as a result of an initial public offering after January 2006, and the customer already holds an investor number and an allotment letter. Furthermore, the licensed exchange should have advised the broker (by circular) that all necessary customer due diligence information and copies of all original identification documents will be made available upon request without delay;
      (c) The customer is a company listed on a GCC or FATF member state stock exchange with equivalent disclosure standards to those of a licensed exchange;
      (d) The customer is a financial institution whose entire operations are subject to AML/CFT requirements consistent with the FATF Recommendations and it is supervised by a financial services supervisor in a FATF or GCC member state for compliance with those requirements;
      (e) The customer is a financial institution which is a subsidiary of a financial institution located in a FATF or GCC member state, and the AML/CFT requirements applied to its parent also apply to the subsidiary;
      (f) The customer is the Central Bank of Bahrain ('CBB'), a licensed exchange, or a licensee of the CBB; or
      (g) The customer is a Ministry of a GCC or FATF member state government, a company in which a GCC government is a majority shareholder, or a company established by decree in the GCC.
      Amended: January 2022
      Amended: January 2019
      Amended: January 2018
      Amended: July 2016
      Added: October 2010

    • AML-1.10.2

      For customers falling under category (b) in rule AML-1.10.1, the customer's name and contact information must be recorded. However, the verification, certification and due diligence requirements (contained in rules AML-1.2.3, AML-1.2.5, AML-1.2.6, AML-1.2.8, AML-1.2.9 and AML-1.2.11), may be dispensed with.

      Amended: July 2018
      October 2010

    • AML-1.10.3

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      October 2010

    • AML-1.10.5

      Capital Market Licensees wishing to apply simplified due diligence measures as allowed for under categories (c) to (g) of rule AML-1.10.1 must retain documentary evidence supporting their categorization of the customer.

      Amended: January 2022
      Added: October 2010

    • AML-1.10.6

      Examples of such documentary evidence may include a printout from a regulator's website, confirming the licensed status of an institution, and internal papers attesting to a review of the AML/CFT measures applied in a jurisdiction.

      October 2010

    • AML-1.10.7

      Capital Market Licensees may use authenticated SWIFT messages as a basis for confirmation of the identity of a financial institution under rule AML-1.10.1 (d) and (e) where it is dealing as principal. For customers coming under rule AML-1.10.1 (d) and (e), Capital Market Licensees must also obtain and retain a written statement from the parent institution of the subsidiary concerned, confirming that the subsidiary is subject to the same AML/CFT measures as its parent.

      Amended: January 2022
      Added: October 2010

    • AML-1.10.8

      Simplified customer due diligence measures must not be applied where a Capital Market Licensee knows, suspects, or has reason to suspect, that the applicant is engaged in Money Laundering or terrorism financing or that the transaction is carried out on behalf of another Person engaged in Money Laundering or terrorism financing.

      Amended: January 2022
      Added: October 2010

    • AML-1.10.8A

      Simplified customer due diligence measures must not be applied in situations where the licensee has identified high ML/TF/PF risks.

       

      Added: January 2022

    • AML-1.10.9

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      October 2010