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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Specific Modules (By Type of Licensee) > Type 1: Money Changers Licensees > Part A > High Level Standards > GR Money Changers General Requirements Module > GR-4 Dividends
  • GR-4 Dividends

    • GR-4.1 CBB Prior Approval

      • GR-4.1.1

        LicenseesG must obtain the CBB's prior written approval to any dividend proposed to be distributed to the shareholders, before announcing the proposed dividend by way of press announcement or any other means of communication and prior to submitting a proposal for a distribution of profits to a shareholder vote.

        October 2010

      • GR-4.1.2

        The CBB will grant approval where it is satisfied that the level of dividend proposed is unlikely to leave the licenseeG vulnerable — for the foreseeable future — to breaching the CBB's financial resources requirements, taking into account (as appropriate) trends in the licensee'sG business volumes, expenses and performance.

        October 2010

      • GR-4.1.3

        To facilitate the prior approval required under Paragraph GR-4.1.1, licenseesG subject to Paragraph GR-4.1.1 must provide the CBB with:

        (a) The licensee'sG intended percentage and amount of proposed dividends for the coming year;
        (b) A letter of no objection from the licensee'sG external auditor on such profit distribution; and
        (c) A detailed analysis of the impact of the proposed dividend on the capital adequacy requirements outlined in Module CA (Capital Adequacy) and the liquidity position of the licensee.
        Amended: October 2017
        October 2010

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