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Location: Central Bank of Bahrain Volume 5—Specialised Licensees > Specific Modules (By Type of Licensee) > Type 3: Financing Companies > Part A > High Level Standards > HC Financing Companies High-level Controls Module > HC-B Scope of Application > HC-B.2 Subsidiaries, Affiliates and Foreign Branches
  • HC-B.2 Subsidiaries, Affiliates and Foreign Branches

    • HC-B.2.1

      LicenseesG must ensure that, as a minimum, the same or equivalent provisions of this Module apply to their foreign branchesG , located outside the Kingdom of Bahrain, such that these are also subject to effective high-level controls. In instances where local jurisdictional requirements are more stringent than those applicable in this Module, the local requirements are to be applied.

      January 2013

    • HC-B.2.2

      LicenseesG must satisfy the CBB that financial services activities conducted in subsidiariesG and other group members are subject to the same or equivalent arrangements for ensuring effective corporate governance over their activities.

      January 2013

    • HC-B.2.3

      Where a licenseeG is unable to satisfy the CBB that its subsidiariesG and other group members are subject to the same or equivalent arrangements, the CBB will assess the potential impact of risks — both financial and reputational — to the licenseeG arising from inadequate high-level controls in the rest of the group of which it is a member. In such instances, the CBB may impose restrictions on dealings between the licenseeG and other group members. Where weaknesses in controls are assessed by the CBB to pose a major threat to the stability of the licenseeG , then its authorisation may be called into question.

      January 2013

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