Under Chapters 2&3 of Part 9 of the Central Bank of Bahrain and Financial Institutions Law (Decree No. 64 of 2006), the Central Bank may impose financial penalties on licensees. Their use is generally limited to situations where major breaches of regulatory requirements have taken place and a licensee has failed to respond in an acceptable manner to the concerns expressed by the Central Bank. Financial penalties are thus normally preceded by the issuance of a written Formal Notice and/or Direction.