BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



Location: Central Bank of Bahrain Volume 1—Conventional Banks > Part A > Business Standards > BC Business and Market Conduct > BC-1 Promotion of Financial Products and Services > BC-1.1 Promotion of Financial Products and Services Offered in/from Bahrain by Means of Incentives etc.
  • BC-1.1 Promotion of Financial Products and Services Offered in/from Bahrain by Means of Incentives etc.

    • Introduction

      • BC-1.1.1

        The purpose of the content of this Section is to set out requirements pertaining to the promotion of banking/financial products offered in/from Bahrain by conventional bank licensees by means of incentives etc. (herein referred to as 'promotional schemes').

        October 07

      • BC-1.1.2

        The CBB has no objection to the use of promotional schemes in general and, unless it otherwise specifically directs in any particular case, the CBB does not expect to be actively consulted/have its approval sought about the idea and/or substance of any promotional schemes. Any advertising of promotional schemes are subject to the requirements of Section BC-1.2. The CBB should also be sent copies of documentation relating to promotional schemes at least ten days prior to their launch for information purposes.

        Amended: October 2012
        Amended: January 2011
        October 07

      • BC-1.1.3

        The CBB will monitor promotional schemes and, if thought appropriate in the interests of a bank or other financial institution (together herein referred to as 'institutions') and its customers in particular and/or the financial sector in general, may issue specific guidance in certain cases. Institutions should feel free to consult the CBB at any time regarding any matters referred to in the explanatory note set out in this Section.

        Amended: January 2011
        October 07

      • BC-1.1.4

        Banks undertaking investment business activities should refer to Chapter BC-8 for additional requirements.

        October 07
        Amended: April 2008

    • General Requirements

      • BC-1.1.5

        Retail bank licensees should take care to ensure that promotional schemes do not involve a breach of Bahrain law or any other relevant applicable law and regulation. In addition, promotional schemes should not in any way be detrimental to the public good or public morals.

        Amended: April 2011
        Added: April 08

      • BC-1.1.6

        While there is to be no formal restriction on the types of incentive which may be used by institutions, care should be taken to ensure that promotional schemes do not negatively affect the integrity, reputation, good image and standing of Bahrain and/or its financial sector, and do not detrimentally affect Bahrain's economy.

        Amended: April 08
        October 07

      • BC-1.1.7

        Bearing in mind the reputation of, and the requirement to develop, the financial sector in Bahrain, as well as the need to act at all times in the best interests of the customer, banks need to take adequate care to ensure that promotional schemes do not unreasonably divert the attention of the public from other important considerations in choosing a bank or a banking/financial product.

        Amended: April 08
        October 07

      • BC-1.1.8

        All documentation concerning promotional schemes should be in Arabic and English and, if relevant, any other language necessary for customers to fully understand and appreciate their terms and conditions. Such terms and conditions, including any related advertising, need to be clear, concise, truthful, unambiguous and complete so as to enable customers to make a fully informed decision.

        Amended: April 08
        October 07

      • BC-1.1.9

        Customers to whom promotional schemes are directed should enjoy equal opportunity in terms of access to, and treatment within, such schemes.

        Amended: April 08
        October 07

      • BC-1.1.10

        No costs (including funding costs), charges or levies associated with promotional schemes should be concealed from prospective customers.

        Amended: April 08
        October 07

      • BC-1.1.11

        All material related to promotional schemes, particularly where raffles/lotteries etc. are concerned, must be maintained for a minimum period of 5 years (see Paragraph OM-7.3.4).

        Amended: April 2011
        Amended: April 08
        October 07

      • BC-1.1.12

        Any raffles/lotteries etc. held as part of promotional schemes should be independently monitored (e.g. by the institution's external auditor) and adequate systems put in place to ensure fair play and impartiality.

        Amended: April 08
        October 07

      • BC-1.1.13

        An appropriate system must also exist for informing participants of the results of a raffle/lottery without delay. Institutions must note that raffles/lotteries etc. may be subject to rules and requirements (including prior authorisation/approval) laid down by the Ministry of Industry and Commerce.

        Amended: April 2011
        Amended: January 2011
        Amended: April 08
        October 07

      • BC-1.1.14

        Banks may use small 'gifts' as an inducement to members of the public to use banks' services, provided such gifts are offered on a general basis and have a low monetary value.

        Amended: April 08
        October 07

      • BC-1.1.15

        Due note should be taken of the overriding provisions of Bahrain (and any other relevant) law in relation to institutions' duties to customers to the extent (if any) that promotional schemes might impact on such duties.

        Amended: January 2011
        Amended: April 08
        October 07

Back to top