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  • CRA-10 CRA-10 Reporting, Notifications and Approvals

    • CRA-10.1 CRA-10.1 Reporting Requirements

      • Reports Prepared by a Licensee

        • CRA-10.1.1

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.1.2

          Licensees must submit a Professional Indemnity Insurance Return (Form PIIR) on an annual basis (ref. CRA-4.8.1). Additionally, they must provide, upon request, evidence to the CBB of the coverage in force.

          Added: April 2019

        • CRA-10.1.3

          Licensees must submit quarterly to the Consumer Protection Unit at the CBB a report summarising the outcome of their complaint handling procedures in accordance with the requirements of Paragraph CRA-4.7.12.

          Amended: April 2023
          Added: April 2019

        • CRA-10.1.3A

          Licensees must submit on an annual basis, no later than 2 months from the end of the reporting period, a report on their liquidity partners which must include the liquidity partners’ names, information on the total value and volume transacted for each type of crypto-asset, and the percentage of all client orders executed through the use of each liquidity partner.

          Added: April 2023

        • CRA-10.1.3B

          Licensees must submit on a quarterly basis, the following information within 10 business days from the end of the reporting period:

          (a) A list of top 100 clients based on the total value traded during each month of the quarter. This report must include the following information:
          (i) Client ID;
          (ii) Place of residency;
          (iii) Crypto-asset type;
          (iv) Type of transaction (Buy or Sell);
          (v) Volume of transaction; and
          (vi) Value of transactions in USD;
          (b) Particulars of any unexpected or unusual volatility, volumes and activity.
          Added: April 2023

      • Annual License Fee

        • CRA-10.1.4

          Licensees must complete and submit the Direct Debit Authorisation Form by 15th September and Form ALF (Annual License Fee) no later than 15th October to the CBB (ref. CRA-1.6.8 and CRA-1.6.9).

          Added: April 2019

      • Institutional Information System (IIS)

        • CRA-10.1.5

          Licensees are required to complete online non-financial information related to their institution by accessing the CBB's institutional information system (IIS). Licensees must update the required information at least on a quarterly basis or when a significant change occurs in the non-financial information included in the IIS. If no information has changed during the quarter, the licensee must still access the IIS quarterly and confirm the information contained in the IIS. Licensees must ensure that they access the IIS within 20 calendar days from the end of the related quarter and either confirm or update the information contained in the IIS.

          Added: April 2019

        • CRA-10.1.6

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

      • Reports Prepared by External Auditors

        • CRA-10.1.7

          Licensees that hold or control client assets must arrange for their external auditor to perform an audit of client assets every 6 months on the licensees’ compliance with the requirements related to the holding and segregation of the client’s assets requirements. The report must be submitted to the CBB by 30th September for the 30th June report and 31st March for the 31st December report. The format of the Auditor’s Report (Agreed Upon Procedure) is included in Part B of the Rulebook, as part of the supplementary information.

          Amended: April 2023
          Added: April 2019

      • Onsite Inspection Reporting

        • CRA-10.1.8

          For the purpose of onsite inspection by the CBB, licensees must submit requested documents and completed questionnaires to the Inspection Directorate at the CBB three working days ahead of inspection team entry date.

          Added: April 2019

        • CRA-10.1.9

          Licensees must review the contents of the draft Inspection Report and submit to the Inspection Directorate at the CBB a written assessment of the observations/issues raised within fifteen working days of receipt of such report. Evidentiary documents supporting management's comments must also be included in the response package.

          Amended: January 2022
          Added: April 2019

        • CRA-10.1.10

          Licensees' board are required to review the contents of the Inspection Report and submit within one month, of the report issue date, a final response to such report along with an action plan addressing the issues raised within the stipulated timeline.

          Added: April 2019

        • CRA-10.1.11

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

    • CRA-10.2 CRA-10.2 Notification Requirements

      • General Requirements

        • CRA-10.2.1

          All notifications and approvals required in this Module are to be submitted by licensees in writing.

          Added: April 2019

        • CRA-10.2.2

          In this Module, the term 'in writing' includes electronic communication capable of being reproduced in paper form.

          Added: April 2019

        • CRA-10.2.3

          Where a licensee is required to make notifications to the CBB or seek its approval under the requirements of this Rulebook, it must make the notification or seek approval immediately after it becomes aware of such a requirement.

          Added: April 2019

      • Matters Having a Serious Supervisory Impact

        • CRA-10.2.4

          Licensees must notify the CBB if any of the following has occurred, may have occurred or may occur in the near future:

          (a) The licensee failing to satisfy one or more of the requirements specified in this Module;
          (b) Any matter which could have a significant adverse impact on the licensee's reputation;
          (c) Any matter which could affect the licensee's ability to continue to provide adequate services to its customers and which could result in serious detriment to a customer of the licensee;
          (d) Any matter in respect of the licensee that could result in material financial consequences to the financial system or to other licensees;
          (e) A significant breach of any provision of the Rulebook;
          (f) A breach of any requirement imposed by the relevant law or by regulations or an order made under any relevant law by the CBB; or
          (g) If a licensee becomes aware, or has information that reasonably suggests that it has or may have provided the CBB with information that was or may have been false, misleading, incomplete or inaccurate, or has or may have changed in a material way. Such notification must be immediately made to the CBB.
          Amended: April 2023
          Added: April 2019

        • CRA-10.2.5

          The circumstances that may give rise to any of the events in Paragraph CRA-10.2.5 are wide-ranging and the probability of any matter resulting in such an outcome, and the severity of the outcome, may be difficult to determine. However, the CBB expects licensees to consider properly all potential consequences of events.

          Added: April 2019

        • CRA-10.2.6

          In determining whether an event that may occur in the near future should be notified to the CBB, a licensee should consider both the probability of the event happening and the severity of the outcome should it happen. Matters having a supervisory impact could also include matters relating to a controller that may indirectly have an effect on the licensee.

          Added: April 2019

      • Legal, Professional, Administrative or other Proceedings Against a Licensee

        • CRA-10.2.7

          Licensees must notify the CBB immediately of any legal, professional or administrative or other proceedings instituted against it or its substantial shareholder that is known to the licensee and is significant in relation to the licensee's financial resources or its reputation.

          Amended: April 2023
          Added: April 2019

        • CRA-10.2.8

          Licensees must notify the CBB of the bringing of a prosecution for, or conviction of, any offence under any relevant law against the licensee that would prevent the licensee from undertaking its activities in fair, orderly and transparent manner or any of its Directors, officers or approved persons from meeting the fit and proper requirements of Section CRA-1.7.

          Added: April 2019

      • Fraud, Errors and other Irregularities

        • CRA-10.2.9

          Licensees must notify the CBB immediately if one of the following events arises:

          (a) It becomes aware that an employee may have committed fraud against one of its clients;
          (b) It becomes aware that a person, whether or not employed by it, is acting with intent to commit fraud against it;
          (c) It identifies irregularities in its accounting or other records, whether or not there is evidence of fraud;
          (d) It suspects that one of its employees may be guilty of serious misconduct concerning his honesty or integrity and which is connected with the licensee's regulated activities; or
          (e) Any conflicts of interest.
          Amended: April 2023
          Added: April 2019

      • Insolvency, Bankruptcy and Winding Up

        • CRA-10.2.10

          A licensee must notify the CBB immediately of any of the following events:

          (a) The calling of a meeting to consider a resolution for winding up the licensee or a substantial shareholder of the licensee;
          (b) An application to dissolve a substantial shareholder of the licensee or to strike the licensee off the Register of crypto-asset licensee;
          (c) The presentation of a petition for the winding up of a substantial shareholder of the licensee;
          (d) The making of any proposals, or the making of, a composition or arrangement with any one or more of the licensee's creditors, for material amounts of debt;
          (e) An application for the appointment of an administrator or trustee in bankruptcy to a substantial shareholder of the licensee;
          (f) The appointment of a receiver for a substantial shareholder of the licensee (whether an administrative receiver or a receiver appointed over particular property); or
          (g) An application for an interim in relation to a substantial shareholder of the licensee under the applicable Bankruptcy laws.
          Amended: April 2023
          Added: April 2019

      • External Auditor

        • CRA-10.2.11

          Licensees must notify the CBB of the following:

          (a) Removal or resignation of its external auditor; or
          (b) Change in audit partner.
          Added: April 2019

      • Approved Persons

        • CRA-10.2.12

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.2.13

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.2.14

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.2.15

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

    • CRA-10.3 CRA-10.3 Approval Requirements

      • Change in Name

        • CRA-10.3.1

          Licensees must obtain CBB’s prior written approval for any change in their legal name. Licensees must notify the CBB of any change in their corporate name at least one week prior to effecting the proposed change.

          Amended: January 2022
          Added: April 2019

        • CRA-10.3.2

          The request to change the licensee legal name must include the details of the proposed new name and the date on which the licensee intends to implement the change of name.

          Amended: January 2022
          Added: April 2019

      • Change of Address

        • CRA-10.3.3

          As specified in Article 51 of the CBB Law, a licensee must seek prior written approval from the CBB of a change in the address of the licensee's principal place of business in Bahrain, and that of its branches, if any.

          Amended: April 2023
          Added: April 2019

        • CRA-10.3.4

          The request under Paragraph CRA-10.3.3 must include the details of the proposed new address and the date on which the licensee intends to implement the change of address.

          Added: April 2019

        • CRA-10.3.5

          As specified in Article 51 of the CBB Law, a licensee must seek prior written approval from the CBB where it intends to carry on its business from new premises in Bahrain. This requirement applies whether or not the premises are to be used for the purposes of transacting business with clients, administration of the business or as the head office in Bahrain of the licensee.

          Amended: April 2023
          Added: April 2019

      • Change in Legal Status

        • CRA-10.3.6

          A licensee must seek the CBB’s prior written approval in relation to any change in its legal status that may, in any way, affect its relationship with or limit its liability to its clients.

          Amended: April 2023
          Added: April 2019

      • Change in Authorised or Issued Capital

        • CRA-10.3.7

          As specified in Article 57(a) of the CBB Law, a licensee must seek the CBB’s prior written approval before making any modification to its authorised or issued capital. In the case that a licensee has been granted approval to increase its paid-up capital, confirmation from the external auditor stating that the amount has been deposited in the licensee's bank account or otherwise reflected in the licensee's accounts will subsequently be required.

          Amended: April 2023
          Added: April 2019

      • Client Asset Transfers

        • CRA-10.3.8

          Licensees must seek prior written approval from the CBB before transferring client assets to a third party, in circumstances other than when acting on instructions from the client concerned.

          Amended: April 2023
          Added: April 2019

      • Licensed Regulated Activities

        • CRA-10.3.9

          Licensees wishing to cancel their license must obtain the CBB's written approval, before ceasing their activities. All such requests must be made in writing to the Director, Capital Markets Supervision, setting out in full the reasons for the request and how the business is to be wound up.

          Added: April 2019

        • CRA-10.3.10

          As specified in Article 50 of the CBB Law, a licensee wishing to cease to provide all or any of its licensed regulated crypto-asset services must obtain prior written approval from the CBB.

          Added: April 2019

        • CRA-10.3.11

          Licensees seeking to obtain the CBB's permission to cease business must submit to the CBB a formal request for the appointment of a liquidator acceptable to the CBB.

          Added: April 2019

      • Carrying out Business in Another Jurisdiction

        • CRA-10.3.12

          As specified in Article 51 of the CBB Law, a licensee must seek the CBB’s prior written approval where it intends to undertake business activities in a jurisdiction other than Bahrain. The request for CBB approval must be made at least three months prior to planned commencement date of such business.

          Amended: April 2023
          Added: April 2019

        • CRA-10.3.13

          Paragraph CRA-10.3.12 applies whether or not the licensee is required to be regulated locally in the jurisdiction where it proposes to undertake the business.

          Amended: April 2023
          Added: April 2019

        • CRA-10.3.14

          The CBB will use the information to consider whether or not it should impose additional requirements on the licensee.

          Amended: April 2023
          Added: April 2019

      • Mergers, Acquisitions, Disposals and Establishment of New Subsidiaries

        • CRA-10.3.15

          As specified in Articles 51 and 57 of the CBB Law, a licensee incorporated in Bahrain must seek prior written approval of the CBB where it intends to:

          (a) Enter into a merger with another undertaking;
          (b) Enter into a proposed acquisition, disposal or establishment of a new subsidiary undertaking; or
          (c) Open a new place of business as a subsidiary undertaking, a branch or a representative office within the Kingdom of Bahrain or other jurisdiction.
          Amended: April 2023
          Added: April 2019

        • CRA-10.3.16

          Licensees wishing cease operation of a subsidiary must obtain the CBB’s written approval, before ceasing the activities of the subsidiary.

          Amended: April 2023
          Added: April 2019

      • Outsourcing Arrangements

        • CRA-10.3.17

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

      • Matters Having a Supervisory Impact

        • CRA-10.3.18

          A licensee must seek prior approval from the CBB for any material changes or proposed changes to the information provided to the CBB in support of an authorisation application that occurs after authorisation has been granted.

          Added: April 2019

        • CRA-10.3.19

          Any licensee that wishes, intends or has been requested to do anything that might contravene, in its reasonable opinion, the provisions of UNSCR 1373 (and in particular Article 1, Paragraphs c) and d) of UNSCR 1373) must seek, in writing, the prior written opinion of the CBB on the matter (ref. AML-9.2.4).

          Added: April 2019

        • CRA-10.3.20

          As specified in Article 57 of the CBB Law, a licensee wishing to modify its Memorandum or Articles of Association, must obtain prior written approval of the CBB.

          Amended: April 2023
          Added: April 2019

        • CRA-10.3.21

          As specified in Article 57 of the CBB Law, a licensee wishing to transfer all or a major part of its assets or liabilities inside or outside the Kingdom, must obtain prior written approval from the CBB.

          Added: April 2019

      • Dividend Distribution

        • CRA-10.3.22

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

      • External Auditor

        • CRA-10.3.23

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

      • Approved Persons

        • CRA-10.3.24

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.3.25

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

        • CRA-10.3.26

          [This Paragraph was deleted in April 2023].

          Deleted: April 2023
          Added: April 2019

      • Withdrawals

        • CRA-10.3.27

          No funds may be withdrawn by shareholders from the licensee without the necessary prior written approval of the CBB.

          Added: April 2019