Back Custom print Link Text Only Rich Text Print

  • AML-12 AML-12 Fraud

    • AML-12.1 AML-12.1 General Requirements for the Detection and Prevention of Fraud

      • AML-12.1.1

        Capital Market Licensees must ensure that they allocate appropriate resources and have in place systems and controls to deter, detect, and record instances of fraud or attempted fraud.

        Amended: January 2022
        Added: October 2010

      • AML-12.1.2

        Fraud may arise from internal sources originating from changes or weaknesses to processes, products and internal systems and controls. Fraud can also arise from external sources, for instance through false invoicing or advance fee frauds. Further guidance — and occasional investor alerts — can be found on the CBB's website (www.cbb.gov.bh).

        October 2010

      • AML-12.1.3

        Any actual or attempted fraud incident (however small) must be reported to the appropriate authorities (including the CBB) and followed up. Monitoring systems must be designed to measure fraud patterns that might reveal a series of related fraud incidents.

        October 2010

      • AML-12.1.4

        Capital Market Licensees must ensure that a Person of sufficient seniority is given overall responsibility for the prevention, detection and remedying of fraud within the organisation.

        Amended: January 2022
        Added: October 2010

      • AML-12.1.5

        Capital Market Licensees must ensure the effective segregation of functions and responsibilities between different individuals and departments, such that the possibility of financial crime is reduced and that no single individual is able to initiate, process and control a transaction.

        Amended: January 2022
        Added: October 2010

      • AML-12.1.6

        Capital Market Licensees must provide regular training to their management and staff, to make them aware of potential fraud risks.

        Amended: January 2022
        Added: October 2010