MIE-3.6.7
Past version: Effective from 11 Nov 2010 to 30 Jun 2021
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(a) Directives under Article 38
Article 38 of the CBB Law states
Article 38 of the CBB Law states
"(a) The Governor shall issue the necessary directives to ensure the implementation of this Law, any regulations issued in accordance to this Law and the achievement of the objectives of the Central Bank. Such directives shall be legally supported and the intended addressees shall be identified.
(b) The Governor may issue directives that aim to facilitate the understanding and implementation of this law and any regulations thereof. He may also issue directives regarding other matters, as he deems appropriate to serve the objectives of the Central Bank.
(c) The directives shall be circulated through the means approved by the Governor. Once circulated to the intended addressees, the directives become binding."
Directives under Article 38 of the CBB Law may also be issued against persons other than licensees and listed companies as an enforcement measure to ensure compliance with the CBB Law, rules and regulations. Such directives may include:
i. Formal warning:
An order issuing a formal warning may be issued to relevantpersons in order to clearly set out the CBB's concerns to such persons to ensure that the matter is viewed by the recipient with appropriate seriousness.
An order issuing a formal warning may be issued to relevant
ii. Cease and Desist Order:
An order prohibiting a relevantperson from continuing an activity. Cease and desist orders can be used as an emergency measure to prevent possible or potential irreparable harm as an interim and temporary injunction, or it can also be used as the outcome of the final investigation and/or enforcement proceedings as a permanent injunction.
An order prohibiting a relevant
iii. Freezing Accounts:
An order freezing an account of a relevantperson with the financial institutions including licensed exchanges, clearing houses, central depositories, banks, brokerage firms, etc. This measure generally will be used as an interim measure.
An order freezing an account of a relevant
iv. Specific Directives:
An order requiring a relevantperson to implement specific measures or checks and balances to ensure implementation of the CBB Law, rules and regulations.
An order requiring a relevant
v. Imposing Restrictions:
An order imposing restrictions on a relevantperson as an enforcement measure to ensure compliance with the CBB Law, rules and regulations.
An order imposing restrictions on a relevant
iv. Private Warnings
In certain cases despite concerns about aperson 's behaviour or evidence of a breach, the CBB may decide that it is not appropriate, having regard to all the circumstances of the case, to bring formal action for a financial penalty or public censure. This is consistent with the CBB's risk-based approach to enforcement. In such cases, the CBB may give a private warning to make the person aware that they came close to being subject to formal action. Typically, the CBB might give a private warning rather than take formal action where the matter giving cause for concern is minor in nature or degree, or where the person has taken full and immediate remedial action. But there can be no exhaustive list of the conduct or the circumstances which are likely to head to a private warning rather than more serious action. The CBB will take into account all the circumstances of the case before deciding whether a private warning is appropriate.
In certain cases despite concerns about a
(b) Criminal Sanction under Article 166
The CBB may initiate proceedings for imposing criminal sanctions in respect of market manipulation offences which result in the violation of Articles 81 or 85 of the CBB Law.
The CBB may initiate proceedings for imposing criminal sanctions in respect of market manipulation offences which result in the violation of Articles 81 or 85 of the CBB Law.
(c) Criminal Sanction under Article 167
The CBB may initiate proceedings for imposing criminal sanctions in respect of market manipulation offences which result in the violation of Article 100 of the CBB Law; i.e. abuse of inside information.
The CBB may initiate proceedings for imposing criminal sanctions in respect of market manipulation offences which result in the violation of Article 100 of the CBB Law; i.e. abuse of inside information.
(d) Criminal Sanction under Article 168
Article 168 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, aperson who contravenes Article (106) of this law is guilty of an offence of market manipulation and shall be liable to imprisonment for a term not exceeding six months and a fine not exceeding Bahraini Dinars ten thousand (10,000) or either penalty."
Article 168 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, a
(e) Criminal Sanction under Article 170
Article 170 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law: (1) Aperson shall be liable to imprisonment for a term not exceeding five years and a fine not exceeding twenty thousand (20,000) Bahraini Dinars, or by either penalty, if he falsifies, conceals, destroys or otherwise disposes of a document which he knows or he should know that such document is relevant or shall be of relevance to a current investigation or an investigation likely to be conducted in accordance with Chapter (1) of Part 9 of this Law. Any person participates in such an offence shall be liable to the same penalty of the principal offender. (2) A person shall be liable to imprisonment for a term not exceeding three months, or a fine not exceeding three thousand (3,000) Bahraini Dinars, or either penalty, if he intentionally obstructed any investigation carried out by the Central Bank or an investigator appointed by the Central Bank."
Article 170 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law: (1) A
(f) Criminal Sanction under Article 171
Article 171 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, aperson who discloses in bad faith any Confidential Information in contravention of the provisions of Part (8), shall be liable to imprisonment and a fine not exceeding Bahraini Dinars ten thousand (10,000), or either penalty."
Article 171 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, a
(g) Criminal Sanction under Article 172
Article 172 of the CBB Law states that "Any legalperson shall be liable and punished under criminal law by a fine not exceeding two hundred thousand Bahraini Dinars, if any of the crimes stated in this Decree are committed in the name or for his account or by means of any of his facilities, and this was a result of any action or gross negligence or by the approval or under covering of any member of the board of directors or any other official of that legal person or any person who acts in such capacity."
Article 172 of the CBB Law states that "Any legal
(h) Criminal Sanction under Article 163
Article 163 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, any officer or employee of a licensee or a listed company shall be punished by imprisonment and a fine not exceeding twenty thousand (20,000) Bahraini Dinars, or by either penalty, if he: (1) Concealed any records, information or documents relevant to the activities of the licensee, requested by the Central Bank or anyperson appointed by the Central Bank to conduct an investigation or inspection on the business of the licensee or the listed company, or provides any of them, in a bad faith, with statements or information which proves to be false or misleading or do not reflect the actual financial position of the licensee or the listed company. (2) Concealed from the external auditor any records, information or documents necessary for auditing the accounts of the licensee or the listed company, or provides him in a bad faith, with misleading or inaccurate statements or information which do not reflect the actual financial position of the licensee or the listed company."
Article 163 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, any officer or employee of a licensee or a listed company shall be punished by imprisonment and a fine not exceeding twenty thousand (20,000) Bahraini Dinars, or by either penalty, if he: (1) Concealed any records, information or documents relevant to the activities of the licensee, requested by the Central Bank or any
(i) Criminal Sanction under Article 169
Article 169 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, a punishment by imprisonment and a fine not exceeding twenty thousand (20,000) Bahraini Dinars, or by either penalty, shall be imposed upon any official or employee of the licensee who acts or permitted an action in violation of Article (134) of this Decree, if he knows or should have known that the licensee is insolvent."
Article 169 of the CBB Law states that "Without prejudice to any greater penalty prescribed under the Penal Code or any other law, a punishment by imprisonment and a fine not exceeding twenty thousand (20,000) Bahraini Dinars, or by either penalty, shall be imposed upon any official or employee of the licensee who acts or permitted an action in violation of Article (134) of this Decree, if he knows or should have known that the licensee is insolvent."