King faisal highway diplomatic area block 317, road 1702, building 96 manama kingdom of bahrain. Aqeela rajab, citf compliance officer housing bank for. News, opinion and commentary general interest securities listing laws, regulations and rules stockexchange listings. Bahrain the legal framework for bancassurance is bahrain is regulated through the central bank of bahrains cbb rule book section gr9 in volume 3 which outlines the key provisions for appointed representatives. The rule of law is an aspect of the bahrain constitution which involves. Central bank of bahrain volume 1conventional banks part a business standards ca capital adequacy part 3. Individual freedoms quality, justice and equal opportunity are core principles of the society. Bahrain bourse is an exchange licensed by the cbb and operates the market and provides other services in accordance with these market rules. Rules concerning the disclosures under this section are applicable to kuwait finance house bahrain b. Bahrain s banks learn hard lessons the kingdoms central bank has proposed an overhaul of the banking system to deal with the aftershocks of the al gosaibi and saad groups troubles. Since 2002, the central bank of bahrain cbb acts as the regulator of the insurance sector and provides an efficient regulatory framework for financial services firms operating in bahrain. Insurance regulator cbb gulf union insurance,bahrain. Independence and immunity of the judiciary are two key guarantees for protecting rights and freedoms.
The disclosures in this report are in addition to the disclosures set out in ithmaar bank b. The central bank of bahrain cbb has recently released the new remuneration rules, which are incorporated as new standards in its rule book, for licensed financial institutions in the kingdom of bahrain. The following proposals, with varying consultation periods have been published. Bahrain to announce new rule on expat salary transfer bahrain will introduce a new rule that would require firms to transfer salaries of all expatriates through local banks.
Bbk annual report 2012 auditors report to the shareholders. Hence, all the requirements indicated in the cbb rulebook apply in these market rules. The purpose of the study is to determine the coverage of corporate disclosures by all listed commercial banks in bahrain bourse and test their quality. Bahrain bourse bhb is a licensed institution subject to the supervision of the central bank of bahrain, operating within a legal framework consisting of various laws, rules and procedures. Central bank of bahrain volume 5specialised licensees common modules applicable to all specialised licensees central bank of bahrain volume 5specialised licensees. In a major attempt to establish industry leading sharia governance principles and practices in bahrain the central bank of bahrain cbb has released a new shariah governance sg module. Under volume 5, cbb also announced amendments to the existing rules on ancillary service providers module au, general requirements module gr, and cbb reporting requirements module br. Under articles 44 to 47 of the central bank of bahrain and financial institutions law 2006 cbb law, the application process is a single phase process with the cbb required to take a decision within 60 calendar days of an application being deemed complete i. Jr street rules section of nhra rulebook hot rod heritage racing series rulebook.
The landmark module, issued after extensive consultation with the industry and with the cbbs centralised sharia supervisory board cssb, is likely to result in a paradigm. Contents central bank of bahrain volume 4investment business. Bahrain economic substance rules the scope of the economic substance rules includes all regulated and nonregulated companies carrying out relevant activities. Under cbbs supervision and in collaboration with iga, benefit launches the 1st ekyc proje.
Contents central bank of bahrain volume 2islamic banks. The new volume provides comprehensive rules and regulations pertaining to the authorisation, registration and supervision of mutual funds domiciled and offered for sale in bahrain. Payment, clearing and settlement systems in the kingdom of bahrain. The central bank of bahrain cbb and the dubai financial services authority dfsa signed a memorandum of understanding mou in bahrain the mou provides a formal basis for supervisory cooperation and mutual support between cbb and dfsa. Other highlights include an expanded range of powers with respect to the regulation of the capital markets and the offering of securities parts 4 and 5, including. Qualified and experienced professional banker with more than 10 years experience in compliance, amlcft, and trade finance, with extensive experience in the central bank of bahrain cbb rulebook, volume 1, and other applicable rules and regulations in bahrain. Manama, kingdom of bahrain 24th february, 2019 benefit the leading electronic financial transactions network announced at. The present volume, the first edition of the red book for the kingdom of bahrain, is another step towards increasing our understanding of the way payment, clearing. The banks comprehensive valuation exercise was completed for all investments as at 31 december. Cbb s basel iii capital rules and guidelines became effective on.
The cbb has approved a transitiongrace period for licensed funding agencies to adopt the. Regulatory requirements, financial laws, licensing rules. The central bank of bahrain cbb is a public corporate entity established. The following is a brief summary of the central bank of bahrain s cbb licensing process and other related matters, such as the requirement for a commercial registration. The bibf conducts a training workshop on islamic banking. Gulf union insurance home page gulf union insurance. The public disclosures under this section have been prepared in accordance with the central bank of bahrain cbb requirements outlined in its public disclosure module pd, cbb rule book, volume ii for islamic banks. A designated market maker shall operate within the regulatory. The guidance notes however reclarify that commercial entities which engage in the following commercial activities regulated by the central bank of bahrain cbb, are required to abide by the cbb directive og4992018 this information article will however only focus on the rules, and not the requirements to cbb regulated entities with. Since the issuance of the operational risk management module in july 2004 by the central bank of bahrain cbb, the arrangement of it outsourcing contracts has come under the supervision of the cbb in the context of its licensees. News, opinion and commentary general interest accounting firms laws, regulations and rules planning accounting services.
In a major attempt to establish industry leading sharia governance principles and practices in bahrain the central bank of bahrain cbb has released a new shariah governance sg module the landmark module, issued after extensive consultation with the industry and with the cbb s centralised sharia supervisory board cssb, is likely to result in a paradigm shift in improving the. Bahrain issues draft rules to regulate cryptocurrencies. The central bank of bahrain cbb is a public corporate entity established by the central bank of bahrain and financial institutions law 2006. Bahrain is growing in influence as a leading centre of innovation for islamic finance. Volume 5 quarterly updates volume 5 adhoc communications to be developed. An annual comprehensive training plan in compliance with the cbb rule book high level controls module for the aub board of directors bod for the continuous professional education of the bod members is managed by group hr through a combination of facetoface training.
This regulatory framework covers rules for the licensing and supervision of cryptoasset services including those provided by a platform operator as a principal, agent and a custodian, within or from the kingdom of bahrain. The concept of outsourcing is commonly used in the banking sector in bahrain. Section 3 annual disclosure requirements, cbb rule book, volume ii for islamic banks. Central bank of bahrain volume 2islamic banks rulebook. This is the homepage of the laws and regulations section of the cbb website. Bahrain economic development board edb telecommunications regulatory authority tra ministry of finance. It paves the way for sharing of information between the two regulatory authorities to strengthen the supervision of crossborder operations of. Since then, the mutual funds industry in bahrain has experienced further growth and developments. Impact of new corporate governance code on disclosures. Appointed representatives are permitted to sell through the banks if they are appropriately qualified in insurance services. The kingdom of bahrain acting through the ministry of finance cbb international sukuk company 7 s. The final framework covers requirements for licensing, governance, cyber security standards, antimoney laundering and other risk management measures, as well as avoidance of conflicts of interest.
In this context presents the title of this study, which is the relationship between central bank of bahrain cbb and islamic banks, a critical shariah governance and advisory analysis to clarify the relationship between the central bank of bahrain and the islamic banks in the kingdom of bahrain in the context of governance and advisory. Annual disclosure requirements, cbb rule book, volume ii for islamic banks. The central bank of bahrain cbb has released volume seven, collective investment undertakings ciu, forming part of the cbb rulebook. Access the commentary pdf, 157kb the rulebook is only available online and is no longer produced in hard copy or usb formats.
Page 1 of 19 risk and capital management disclosures for the period ended 30 june 2018 these disclosures have been prepared in accordance with the public disclosure module pd, cbb rule book, volume i for. The report has been designed to provide bbk groups. Financial services board ifsb in setting capital adequacyrisk management rules and regulations for. All regulations relating to capital markets in bahrain regulations are under volume 6 of the cbb rulebook. Cbb proposes and finalizes rulebook modules for banks in. A number of amendments were made to the cbb s codes and rules between 2014 and 2019, with the aim of promoting best practice and on the basis of certain rulings of the primary global committee of banking supervision the basel committee. Cbb announced amendments to the rulebook volumes 1 and 2, along with a new module on open banking module ob under the rulebook volume 5. Bahrain cbb requirements outlined in its public disclosure module pd, section pd1. Central bank of bahrain cbb has subsequently updated its rules book for its licensee banks based on this code. Bahrain to announce new rule on expat salary transfer. The cbb has issued a similar directive og4992018 to all of its licensees.
The cbb has approved a transitiongrace period for licensed funding agencies to adopt the new remuneration rules which enter force on july 1. The sector is regulated and supervised by the central bank of bahrain cbb. In addition, bhb may discretionally impose administrative fines on issuers for any noncompliance with listing rules and any other applicable bhb rules, regulations and. The bank operates under islamic shariaprinciples in accordance with the regulatory requirements for islamic banks set by the cbb. The cbb is countinously working in completing the implementation of its plan for the development and updating of the legislative, regulatory and supervisory framework for the capital market sector. Financial information independent auditors report to the. New regulation under module hc5 of volume 1 and 2 of the cbb rulebook. Bahrain s central bank has issued draft rules on the trade in cryptocurrencies for consultation, setting up a framework to regulate virtual currencies as gcc countries look to increasingly tap. In addition, an issuer must sign the deposit of securities agreement with bahrain clear, in accordance to article 94 of the cbb law prior to the listing of its securities. On 22 november 2018, the central bank of bahrain cbb issued a directive concerning economic substance. The application form should be completed by referring to module arr of volume 7 collective investment undertakings of the cbb.
It is purely a guide and does not constitute the cbb s formal requirements for licensing, which can be found in the relevant volumes of the cbb s rulebook. This has provided the framework for the bahrain insurance industry to flourish and for bahrain to become the insurance hub of this important region. The central bank of bahrain cbb is the central bank of bahrain. Central bank of bahrain cbb, the banking regulator, is mandated to ensure the financial stability of the kingdom and formulate the monetary policy. Bahrain published draft rules to regulate cryptocurrencies in december. Al salam bank products stay informed and updated on all products related to your bank. Central bank of bahrain volume 1conventional banks rulebook. Cbb the central bank of bahrain cbb rulebook or cbb rule book high level controls module of the cbb rulebook volume 6 for capital markets ceo chief executive officer cfo chief financial officer charters board and its committee charters committees subcommittees of the board company law the commercial companies law decree law no.
Bahrain and financial institutions law, the cbb rule book volume 2 and relevant cbb directives. The bcts enables banks to exchange electronic images of their clearing cheques thus reducing the clearing cycle to one business day. From this homepage, users have access to relevant laws, regulations and associated communications, as well as to material issued by the bahrain stock exchange. This document should be read in conjunction with the condensed consolidated interim financial information for the six months period ended 30 june 201 8 and the qualitative disclosures in the annual report. The bank was incorporated on 19 january 2006 in the kingdom of bahrain. Cbb licensing process and requirements are prescribed in the cbb rulebook. Jun 04, 2014 report on other regulatory matters as required by the bahrain commercial companies law and the central bank of bahrain the cbb rule book volume 1, we report that. These regulatory instruments are contained in the cbb rulebook. Central bank of bahrain volume 1conventional banks. The central bank of bahrain the cbb, in its capacity as the regulatory and supervisory authority for all financial institutions in bahrain, issues regulatory instruments that licensees and other specified persons are legally obliged to comply with. The committee on payments and market infrastructures cpmi publishes under the aegis of the bank for international settlements bis reference works on payment systems and other financial market infrastructures in both cpmi member and non member countries. The first collective investments schemes rules were issued by the cbb in 1992 and subsequently revamped in june 2007, when the ciu module within cbb rulebook volume 6 was issued. Zain bahrain is in compliance with the principles of the cg code and the cbb module with the exception of the following. The cbb is responsible for maintaining monetary and financial stability in the kingdom of bahrain.
Open bankingunder volume 5, cbb proposed a new module ob, along with amendments to the existing rules on ancillary service providers module au, general requirements module gr, and cbb reporting requirements module br. Relationship between central bank of bahrain cbb and. Bahrain cheque truncation system bcts is value adding service that benefit provides not only to the financial sector but to the overall community of bahrain. Independent directors will not be more than 3 persons being a board of seven 7 members and with mobile. The commentary provides an explanation of the main changes to the acca rulebook, which take effect on 1 january 2020 and 1 february 2020. These guidelines do not supersede bhb market rules and should be read in conjunction with related provisions of bhb market rules.
The cbb has granted a transitiongrace period for licensed financial institutions to implement the new. Rules concerning the disclosures under this section are applicable to bahrain islamic bank b. Volume 1 part a volume 1 part b quarterly updates ad hoc communications. The cbb covers areas such as licensing requirements, capital adequacy, risk management, business conduct, reporting and disclosure requirements, as well as enforcement actions. Guidance notes for bahrain economic substance rules al. The landmark module, issued after extensive consultation with the industry and with the cbb s centralized sharia supervisory board cssb, is likely to result in a paradigm shift in improving the sharia compliance and governance standards among islamic banks in bahrain and shall set proper benchmarks for global sharia governance practices. Cbb issues regulations on sharia governance module bizbahrain. Law company charles russell said the cbb is now looking to incorporate the basel committees pillar 3 steps concerned with the structure of capital and remuneration into its regulatory framework by introducing the new remuneration rules in its rule book. Credit risk management module central bank of bahrain. For the avoidance of doubt, this code shall not have any legal implications, and the provisions therein shall be subject to the rules of the cbb rule book. We are not aware of any violations of the bahrain commercial companies law, the central bank of bahrain and financial institutions law, the cbb rule book volume 1 and applicable provisions of volume 6 and cbb directives, regulations and associated resolutions, rules and procedures of the bahrain bourse or the terms of the banks memorandum. Bancassurance regulations in the gcc bsa ahmad bin hezeem.
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