Regulated financial institutions wishing to acquire more than 20% of the voting capital of a licensee must observe the following additional conditions:

(a) The person must be subject to effective consolidated supervision by a supervisory authority which effectively implements the Basel Core Principles, the IOSCO Principles or the IAIS Principles as well as the FATF 40+9 Recommendations on Money Laundering and Terrorist Financing;
(b) The home supervisor of the person must give its formal written prior approval for (or otherwise raise no objection to) the proposed acquisition of the licensee;
(c) The home supervisor of the person must confirm to the CBB that it will require the person to consolidate the activities of the concerned licensee for regulatory and accounting purposes if the case so requires;
(d) The home supervisor of the person must formally agree to the exchange of customer information between the person and its prospective Bahraini subsidiary/acquisition for AML/CFT purposes and for large exposures monitoring purposes;
(e) The home supervisor of the person and the CBB must (if not al in place) conclude a Memorandum of Understanding in respect of supervisory responsibilities, exchange of information and mutual inspection visits;
(f) The person must provide an acceptably worded letter of guarantee to the CBB in respect of its obligation to support the licensee; and
(g) The licensee will be subject to the provisions of Chapter CM-5 in respect of exposures to its controller.
January 2013