Part 9 Part 9 Investigations and Administrative Proceedings
Chapter 1 Chapter 1 Investigation
Article (121) Appointment of Investigators(a) When necessary, the Central Bank may appoint one or more qualified investigators to conduct investigation with respect to the following:a. Nature or position of the business of a Licensee.b. A particular aspect of the businesses of a Licensee.c. The ownership or control of a Licensee.d. Whether the Licensee is practicing the very business licensed thereto, and assessing to what extent the Licensee is abiding, in providing the said business, by the provisions of the law and the terms and conditions of the license.e. Whether a Licensee is carrying out unlicensed business.f. Whether the listed companies are abiding by the procedures and principles of listing referred to in paragraph (c) of Art (86) of this law.i. The Investigator may conduct an investigation, where necessary, on the business of any member of a group or company to which the Licensee under investigation is a party. The Licensee under investigation must be notified in writing of the decision to investigate its business.
Article (122) Assistance in Investigations by Overseas Authorities(a) The Central Bank may provide assistance upon request by an Overseas authority. To this end the central bank may:1. Exercise the powers conferred thereto by Article 111 of this law to require information and documents.(b) In deciding a request by an overseas authority pursuant to paragraph (a) of this Article, the Central Bank may consider in particular:1. Whether the country or territory of the Overseas authority is adopting the basis of reciprocity in its relation with the Kingdom;2. The seriousness of the case and its importance to persons in the Kingdom;3. Whether it is otherwise appropriate in the public interest to give the assistance requested.(c) The Central Bank may decide to reject the request stated in paragraph (a) of this Article unless the Overseas Authority undertakes to make contributions towards the cost of exercising such powers as the Central Bank considers appropriate.
Article (123) Request of Information and Documents in Possession of a Third Party(a) Any person who is in possession of information or documents relevant to an investigation conducted by the Central Bank or its duly appointed investigator, should promptly present such information or documents upon request by the central bank or its duly appointed investigator(b) If the Central Bank or its duly appointed investigator receives a document according to the requirement imposed under this Chapter, it may:1. Take copies or extracts from such document.2. Require the person producing the document, or any other relevant person, to provide an explanation of the contents of the document.(c) If the person fails to produce the document required, but he has information about the whereabouts of such document, then he should, upon the request of the Central Bank or its appointed investigator, indicate where the document is located.
Article (124) Enabling the Central Bank to Practice Its Duties(a) If the Central Bank or its authorised person, for any reason, fails to enter and inspect the premises, offices, or locations of the Licensee to obtain any information or necessary documents and data, or if the powers conferred to the Central Bank are not sufficient for it to practice its supervision tasks over the business of the Licensee, then the Central Bank may seek a court order upon a petition to enable the authorised investigators to carry out the following:1. Entering and inspecting specific premises and obtaining relevant information, data or documents.2. Copying or taking extracts of any relevant document information or data.3. Compelling any person employed by the Licensee to give explanation respecting, or to specify the whereabouts of, any documents, information or data.Compelling force may be used where necessary.(b) If necessary the Central bank may retain any documents obtained by virtue of the provisions of the previous paragraph for a period not exceeding six months. However, if the procedures of a trial of any person commenced in connection with committing a crime within the period of the specified six months and the procedures of the said trail continued beyond this period, and the mentioned documents prove to be of relevance to such procedures, then the Central bank may retain such documents up to the end of the said trial procedures, or to any other date determined by the Competent Court.
Chapter 2 Chapter 2 Procedures to be Taken Before Penalties or Administrative Proceedings are Applied
Article (125) Warning Notice
Prior to imposing any penalties or administrative proceedings upon the Licensee, the Central Bank must deliver to him a written notice containing the following:(a) The violations committed by the Licensee with respect to the provisions of this law, the resolutions and bylaws issued in enforcing thereof, or of the terms and conditions of the License, accompanied by the evidence and proves that convinced the Central Bank that such violation had occurred.(b) The penalty or administrative proceedings intended to be imposed upon the Licensee.(c) The grace period to be allowed for challenging the intended penalty or administrative proceedings, which should not be less than thirty days as from the date of serving the notice.
Article (126) Right of Objection
The Licensee shall have the right to submit a written objection to the contents of the notice served pursuant to Article 125 of this law, within the period specified in the same notice, provided that the objection is duly justified and accompanied by supporting documents, information and data.
Article (127) Decision Notice
The Central Bank must discuss the objection submitted pursuant to Article (126) of this law, and issue the appropriate resolution, provided that such resolution is served to the objector within thirty days of submitting such objection.
Chapter 3 Chapter 3 Penalties and Administrative Proceedings
Article (128) Imposing Restrictions
With regards to the provision of paragraph (c) of Article (48) of this law, the central bank may impose upon the Licensees and the listed companies restrictions to secure the compliance by the provisions of this law and the regulations and resolutions issued in implementing thereof, along with the terms and conditions of the License. This shall take place in case of violating such provisions and terms and conditions, or it appears, due to significant evidences and indicators, that such violations have most likely occurred.
Article (129) Imposing Administrative Fines
Without prejudice to any criminal or civil liability of the Licensee, the Central Bank may levy upon the Licensee an administrative fine not exceeding twenty thousand (20,000) Bahraini Dinars, if the Licensee breeches the provisions of this law or the regulations and resolutions issued in connection with implementing thereof or by reason of breeching the terms and conditions of the license.
Article (130) Administrative Proceedings
If imposing administrative restrictions upon the Licensee, with respect to the cases stated in Article (128) of this law, proves to be futile, then the central Bank may take any of the following measures:(1) Appointing an observer member on the board of directors of the Licensee for a period specified by the Central Bank. Such a member shall have the authority to participate in the deliberations of the board of directors and to give opinions on any resolutions passed by the board.(2) Placing the Licensee under administration pursuant to the provisions of chapter 2 of part 10 of this law.
Article (131) Suspension of the Licensee from Providing the Service
Without prejudice to any of the provisions of this chapter, the Central Bank may suspend the Licensee who contravenes any of the provisions of this law, the regulations and bylaws issued in connection with implementing thereof, or the terms and conditions of the license, from carrying out any Regulated Services as may be specified for a period or periods as may be specified by the Central Bank. Provided that the total period or periods of such suspensions shall not exceed twelve months.
Article (132) Public Censure
The central bank may issue a public statement on such breach that occurred to the provisions of this decree or the regulations and by laws issued in implementing thereof, whether this breach is committed by the Licensee, the listed company or any official of both. The publication should be carried out in a manner proportionate to the nature and the magnitude of the violation.