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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Common Modules (Applicable to all Specialised Licensees) > Part A > Enforcement & Redress > EN Enforcement > EN-9 Criminal Sanctions
  • EN-9 Criminal Sanctions

    • EN-9.1 Overview

      • EN-9.1.1

        The CBB Law provides for a number of criminal sanctions in cases where certain of its provisions are contravened. This Section provides a summary of those sanctions most relevant to licenseesG , their DirectorsG and employees. What follows is not a complete list of all sanctions provided for in the CBB Law, nor is it a substitute for reading the Law and being fully aware of its provisions.

        October 2010

      • EN-9.1.2

        LicenseesG , their DirectorsG and employees should also be aware of the criminal sanctions provided for under other relevant Bahraini laws, such as the Decree – Law No. 4 of 2001, with respect to the prevention and prohibition of the laundering of money.

        October 2010

      • EN-9.1.3

        In all cases to do with criminal sanctions, the CBB can only refer the matter to the Office of the Public Prosecutor. The CBB has no authority to apply such sanctions without recourse to the courts.

        October 2010

    • EN-9.2 CBB Policy

      • EN-9.2.1

        Because of their criminal status, and their provision for custodial sentences, the sanctions provided for under the CBB Law are viewed by the CBB as very powerful measures, to be pursued sparingly. In most situations, the CBB will seek to address regulatory failures through administrative sanctions, as outlined in the preceding Chapters, rather than by pursuing the criminal sanctions outlined here.

        October 2010

      • EN-9.2.2

        Where, however, the nature of the offence is such that there is strong evidence of a reckless or intentional breach of the CBB Law relevant to the following Articles, then the CBB will refer the matter to the Office of the Public Prosecutor.

        October 2010

    • EN-9.3 Articles of CBB Law

      • Article 161

        • EN-9.3.1A

          Article 161 of the CBB Law provides for a penalty of up to BD 1 million, without prejudice to any other penalty prescribed in any other law, in case of any person who breaches the provisions of Resolution No.(16) for the year 2012 issued pursuant to Article 42 of the CBB Law. The Court may also confiscate the proceeds resulting from breaching the Resolution.

          Added: January 2013

      • Article 163

        • EN-9.3.1

          Article 163 of the CBB Law provides for a term of imprisonment and/or a fine of up to BD 20,000, without prejudice to any other penalty prescribed in any other law, in case of conviction of a DirectorG , manager, official, agent or representative of any licenseeG who:

          (a) Conceals any records, information or documents requested by the CBB (or any person appointed by the CBB to conduct an investigation or inspection);
          (b) Provides statements or information in bad faith which do not reflect the actual financial position of the LicenseeG ;
          (c) Conceals from an external auditor any records, information or documents necessary for auditing the accounts of the LicenseeG ; or
          (d) Provides in bad faith any misleading or inaccurate statements to an external auditor which do not reflect the actual financial position of the LicenseeG .
          October 2010

      • Article 169

        • EN-9.3.2

          Article 169 provides for a term of imprisonment, and/or a fine of up to BD 20,000 for any DirectorG , manager, official or employee, who acts or permits an act in violation of Article 134 of the CBB Law where he knows (or should have known) that the LicenseeG is insolvent.

          October 2010

      • Article 170

        • EN-9.3.3

          Part 2 of Article 170 of the CBB Law provides for term of imprisonment and/or a fine not exceeding BD3,000 if any DirectorG , manager, official or employee intentionally obstructs an investigation by the CBB or an Appointed ExpertG .

          October 2010

      • Article 171

        • EN-9.3.4

          Article 171 of the CBB Law provides for a term of imprisonment and/or a fine not exceeding BD10, 000, if any DirectorG , manager, official or employee discloses in bad faith any confidential information relating to a customerG of the concerned of a licenseeG .

          October 2010

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