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  • AML-3.1 AML-3.1 Appointment of MLRO

    • AML-3.1.1

      Capital Market Licensees must appoint a Money Laundering Reporting Officer ("MLRO"). The position of the MLRO is a controlled function and the MLRO is an approved Person.

      Amended: January 2022
      Added: October 2010

    • AML-3.1.2

      For details of CBB's requirements regarding controlled functions and approved Persons, see the relevant licensing Module, such as MAE, CSD, or MIR Module. Amongst other things, approved Persons require CBB approval before being appointed, which is granted only if they are assessed as 'fit and proper' for the function in question. A completed Form 3 must accompany any request for CBB approval.

      October 2010

    • AML-3.1.3

      The position of the MLRO must not be combined with functions that create potential conflicts of interest, such as an internal auditor or business line head. The position of the MLRO may not be outsourced.

      October 2010

    • AML-3.1.4

      Subject to rule AML-3.1.3, however, the position of the MLRO may otherwise be combined with other functions in the Capital Market Licensees, such as that of Compliance Officer, in cases where the volume and geographical spread of the business is limited and, therefore, the demands of the function are not likely to require a full time resource. Rule AML-3.1.7 requires that the MLRO is a Director or employee of the Capital Market Licensees, so the function may not be outsourced to a third-party employee.

      Amended: January 2022
      Added: October 2010

    • AML-3.1.4A

      For purposes of Paragraphs AML-3.1.3 and AML-3.1.4 above, Capital Market Licensees must clearly state in the Application for Approved Person Status — Form 3 — when combining the MLRO or DMLRO position with any other position within the Capital Market Licensees.

      Added: January 2022

    • AML-3.1.5

      Unless exempted by the CBB, a Capital Market Licensees must appoint deputy MLRO to act for the MLRO in his/her absence. The deputy MLRO must be resident in Bahrain unless otherwise agreed with the CBB.

      Amended: January 2022
      Added: October 2010

    • AML-3.1.5A

      Where a Capital Market Licensees seeks an exemption from appointment of Deputy MLRO, from the CBB, it must provide in writing, to the satisfaction of the CBB, the nature, scale and complexity of their business and the alternative arrangements that the Capital Market Licensees shall implement when the MLRO is not available to carry out the controlled function.

      Added: January 2022

    • AML-3.1.6

      Capital Market Licensees should note that although the MLRO may delegate some of his functions, either to other employees of the Capital Market Licensees or even (in the case of larger groups) to individuals performing similar functions for other group entities, the responsibility for compliance with the requirements of this Module remains with the Capital Market Licensees and the designated MLRO. The deputy MLRO should be able to support the MLRO discharge his responsibilities and to deputise for him in his absence.

      Amended: January 2022
      Added: October 2010

    • AML-3.1.7

      So that he can carry out his functions effectively, Capital Market Licensees must ensure that their MLRO:

      (a) Is a Director or a member of senior management of the Capital Market Licensees;
      (b) Has a sufficient level of seniority within the Capital Market Licensees, has the authority to act without interference from business line management and has direct access to the Board and senior management (where necessary);
      (c) Has sufficient resources, including sufficient time and (if necessary) support staff, and has designated a replacement to carry out the function should the MLRO be unable to perform his duties;
      (d) Has unrestricted access to all transactional information relating to any financial services provided by the Capital Market Licensees to that customer, or any transactions conducted by the Capital Market Licensees on behalf of a customer;
      (e) Is provided with timely information needed to identify, analyze and effectively monitor customer accounts;
      (f) Has access to all customer due diligence information obtained by the Capital Market Licensees; and
      (g) Is resident in Bahrain.
      Amended: January 2022
      Added: October 2010

    • AML-3.1.8

      In addition, Capital Market Licensees must ensure that their MLRO is able to:

      (a) Monitor the day-to-day operation of its policies and procedures relevant to this Module; and
      (b) Respond promptly to any reasonable request for information made by the Financial Intelligence Directorate, or the CBB.
      Amended: January 2022
      Amended: October 2019
      Added: October 2010

    • AML-3.1.9

      If the position of the MLRO falls vacant, the Capital Market Licensee must appoint a permanent replacement (after obtaining CBB approval), within 120 calendar days of the vacancy occurring. Pending the appointment of a permanent replacement, the Capital Market Licensees must make immediate interim arrangements (including the appointment of an acting MLRO) to ensure continuity in the MLRO function's performance. These interim arrangements must be approved by the CBB. Any action taken by the Deputy MLRO will be regarded as having the same authority as if it had been done by the MLRO.

      Amended: January 2022
      Added: October 2010