CRA-11 CRA-11 Information Gathering by the CBB
CRA-11.1 CRA-11.1 Power to Request Information
CRA-11.1.1
Licensees must provide all information that the CBB requests in order to discharge its regulatory obligations.Amended: April 2023
Added: April 2019CRA-11.1.2
Licensees must provide all relevant information and assistance to the CBB inspectors andappointed experts on demand as required by Articles 111 and 114 of the CBB Law. Failure bylicensees to cooperate fully with the CBB's inspectors orappointed experts , or to respond to their examination reports within the time limits specified, will be treated as demonstrating a material lack of cooperation with the CBB which will result in other enforcement measures.Added: April 2019CRA-11.1.3
Article 163 of the CBB Law provides for criminal sanctions where false or misleading statements are made to the CBB or any person /
appointed expert appointed by the CBB to conduct an inspection or investigation on the business of thelicensee .Added: April 2019Information Requested on Behalf of other Supervisors
CRA-11.1.4
[This Paragraph was deleted in April 2023]
Deleted: April 2023
Added: April 2019CRA-11.2 CRA-11.2 Access to Premises
CRA-11.2.1
Representatives of the CBB, or persons appointed by the CBB may access, with or without notice, any of the
licensee’s business premises in relation to the discharge of the CBB’s functions pursuant to the CBB Law.Amended: April 2023
Added: April 2019CRA-11.2.2
A
licensee must take reasonable steps to ensure that its agents and providers under outsourcing arrangements permit such access to their business premises, to the CBB.Added: April 2019CRA-11.2.3
A
licensee must take reasonable steps to ensure that each of its providers under material outsourcing arrangements deals in an open and cooperative way with the CBB in the discharge of its functions in relation to thelicensee .Added: April 2019CRA-11.2.4
The cooperation that
licensees are expected to procure from such providers is similar to that expected oflicensees themselves.Added: April 2019CRA-11.3 CRA-11.3 Accuracy of Information
CRA-11.3.1
A
licensee must ensure that all information it provides to the CBB is:(a) Factually accurate or, in the case of estimates and judgements, fairly and properly based on appropriate analysis and enquiries have been made by thelicensee ; and(b) Complete, in that it should include everything which the CBB would reasonably and ordinarily expect to have or require.Amended: April 2023
Added: April 2019CRA-11.3.2
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, it must notify the CBB immediately. The notification must include:(a) Details of the information which is or may be false, misleading, incomplete or inaccurate, or has or may have changed;(b) An explanation why such information was or may have been provided in false, misleading, incomplete or inaccurate manner; and(c) The correct information.Amended: April 2023
Added: April 2019CRA-11.3.3
If the information in Paragraph CRA-11.3.2 cannot be submitted with the notification (because it is not immediately available), it must instead be submitted as soon as possible afterwards.
Added: April 2019CRA-11.4 CRA-11.4 Methods of Information Gathering
CRA-11.4.1
The CBB uses various methods of information gathering on its own initiative which require the cooperation of
licensees :(a) Representatives of the CBB may make onsite visits at the premises of thelicensee . These visits may be made on a regular basis, or on a sample basis, for special purposes such as theme visits (looking at a particular issue across a range oflicensees ), or when the CBB has a particular reason for visiting alicensee ;(b) Appointees of the CBB may also make onsite visits at the premises of thelicensee . Appointees of the CBB may include persons who are not CBB staff, but who have been appointed to undertake particular monitoring activities for the CBB, such as in the case ofAppointed Experts (refer to Section CRA-11.5).(c) The CBB may request thelicensee to attend meetings at the CBB's premises or elsewhere;(d) The CBB may seek information or request documents by telephone, at meetings or in writing, including electronic communication;(e) The CBB may requirelicensees to submit various documents or notifications, as per Chapter CRA-11, in the ordinary course of their business such as financial reports or upon the occurrence of a particular event in relation to thelicensee such as a change in control.Amended: April 2023
Added: April 2019CRA-11.4.2
When seeking meetings with a
licensee or access to thelicensee’s premises, the CBB or the CBB appointee will access to alicensee’s documents and personnel. Such requests will normally be made during reasonable business hours and with proper notice. However, there may be instances where the CBB may access thelicensee’s premises without prior notice.Amended: April 2023
Added: April 2019CRA-11.4.3
The CBB expects that a
licensee should:(a) Make itself readily available for meetings with representatives or appointees of the CBB;(b) Give representatives or appointees of the CBB reasonable access to any records, files, tapes or computer systems, which are within thelicensee's possession or control, and provide any facilities which the representatives or appointees may reasonably request;(c) Produce to representatives or appointees of the CBB specified documents, files, tapes, computer data or other material in thelicensee's possession or control as as requested or required;(d) Print information in thelicensee 's possession or control which is held on computer or otherwise convert it into a readily legible document or any other record which the CBB may reasonably request;(e) Arrange for representatives or appointees of the CBB to copy documents of other material on the premises of thelicensee at thelicensee 's expense and to remove copies and hold them elsewhere, or provide any copies, as requested by the CBB or its appointees; and(f) Answer truthfully, fully and promptly all questions which representatives or appointees of the CBB put to it.Amended: April 2023
Added: April 2019CRA-11.4.4
The CBB considers that a
licensee should ensure that the following persons act in the manner set out in Paragraph CRA-11.4.3:(a) Its employees; and(b) Any other members of its group and their employees.Amended: April 2023
Added: April 2019CRA-11.4.5
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5 CRA-11.5 The Role of the Appointed Expert
Introduction
CRA-11.5.1
The content of this Section is applicable to all
licensees andappointed experts .Amended: April 2023
Added: April 2019CRA-11.5.2
The purpose of the contents of this Section is to highlight the roles and responsibilities of
appointed experts when appointed pursuant to Article 114 or 121 of the CBB Law.Amended: April 2023
Added: April 2019CRA-11.5.3
The CBB uses its own inspectors to undertake on-site examinations of
licensees as an integral part of its regular supervisory role. In addition, the CBB may commission reports on matters relating to the business oflicensees in order to assist it in assessing their compliance with CBB requirements.Amended: April 2023
Added: April 2019CRA-11.5.4
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5.5
Appointed experts must not be the same firm appointed as external auditor of thelicensee .Amended: April 2023
Added: April 2019CRA-11.5.6
The CBB will decide on the range, scope and frequency of work to be carried out by
appointed experts .Amended: April 2023
Added: April 2019CRA-11.5.7
The appointment will be made in writing, and made directly with the
appointed experts concerned. A separate letter is sent to thelicensee , notifying them of the appointment. At the CBB’s discretion, atrilateral meeting may be held at any point, involving the CBB and representatives of thelicensee and theappointed experts , to discuss any aspect of the of the inspection or investigation or the report produced by the appointed expert.Amended: April 2023
Added: April 2019CRA-11.5.8
Following the completion of the investigation, the CBB will normally provide feedback on the findings of the investigation to the
licensee .Added: April 2019CRA-11.5.9
Appointed experts will report directly to and be responsible to the CBB in this context and will specify in their report any limitations placed on them in completing their work (for example due to thelicensee’s group structure). The report produced by theappointed experts is the property of the CBBAmended: April 2023
Added: April 2019CRA-11.5.10
Compliance by
appointed experts with the contents of this Chapter will not, of itself, constitute a breach of any other duty owed by them to a particularlicensee (i.e. create a conflict of interest).Added: April 2019CRA-11.5.11
The CBB may appoint one or more of its officials to work on the
appointed experts' team for a particularlicensee .Added: April 2019The Required Report
CRA-11.5.12
The scope of the required report will be determined and detailed by the CBB in the appointment letter.
Appointed experts would normally be required to report on one or more of the following aspects of alicensee’s business:(a) Accounting and other records;(b) Internal control systems;(c) Returns of information provided to the CBB;(d) Operations of certain departments; and/or(e) Other matters specified by the CBB.Amended: April 2023
Added: April 2019CRA-11.5.13
Appointed experts will be required to form an opinion on whether, during the period examined, thelicensee is in compliance with the relevant provisions of the CBB Law and the CBB’s relevant requirements, as well as other requirements of Bahrain Law and, where relevant, industry best practice locally and/or internationally.Amended: April 2023
Added: April 2019CRA-11.5.14
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5.15
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5.16
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5.17
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019Other Notifications to the CBB
CRA-11.5.18
Appointed experts must communicate to the CBB, during the conduct of their duties, any reasonable belief or concern they may have that any of the requirements of the CBB, including the licensing conditions are not or have not been fulfilled, or that there has been a material loss or there exists a significant risk of material loss in the concernedlicensee , or that the interests of customers are at risk because of adverse changes in the financial position or in the management or other resources of thelicensee . Notwithstanding the above, it is primarily thelicensee's responsibility to report such matters to the CBB.Added: April 2019CRA-11.5.19
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-11.5.20
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019Permitted Disclosure by the CBB
CRA-11.5.21
Appointed experts must keep all information relating to thelicensee confidential and not divulge it to a third party except with the CBB’s written permission or unless required by applicable laws in the Kingdom of Bahrain.Amended: April 2023
Added: April 2019Trilateral Meeting
CRA-11.5.22
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019
