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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > Business Standards > FC Financial Crime > FC-1 Customer Due Diligence > FC-1.10 Simplified Customer Due Diligence > FC-1.10.1
  • FC-1.10 Simplified Customer Due Diligence

    • FC-1.10.1

      Investment firm licenseesG may apply simplified customer due diligence measures, as described in Paragraphs FC-1.10.2 to FC-1.10.8, if:

      (a) [This Subparagraph was deleted in January 2018].<
      (b) The transaction concerns the sale of a security listed on the Bahrain Bourse ('BHB'), and issued as a result of an initial public offering after January 2006, and the customer already holds an investor number, an allotment letter and a valid BHB Form 2 in place. Furthermore, the BHB should have advised the broker (by circular) that all necessary customer due diligence information and copies of all original identification documents will be made available upon request without delay;
      (c) The customer is a company listed on a GCC or FATF member state stock exchange with equivalent disclosure standards to those of the BHB;
      (d) The customer is a financial institution whose entire operations are subject to AML/CFT requirements consistent with the FATF Recommendations and it is supervised by a financial services supervisor in a FATF or GCC member state for compliance with those requirements;
      (e) The customer is a financial institution which is a subsidiary of a financial institution located in a FATF or GCC member state, and the AML/CFT requirements applied to its parent also apply to the subsidiary;
      (f) The customer is the Bahrain Monetary Agency ('CBB'), the BHB or a licenseeG of the CBB; or
      (g) The customer is a Ministry of a Gulf Cooperation Council ('GCC') or Financial Action Task Force ('FATF') member state government, a company in which a GCC government is a majority shareholder, or a company established by decree in the GCC.
      Amended: January 2019
      Amended: January 2018
      Amended: October 2014
      Amended: July 2010
      Amended: January 2007

    • FC-1.10.2

      For customers falling under category (b) in Paragraph FC-1.10.1, the customer's name and contact information must be recorded. However, the verification, certification and due diligence requirements (contained in Paragraphs FC-1.2.3, FC-1.2.5, FC-1.2.8, FC-1.2.9 and FC-1.2.11), may be dispensed with.

      Amended: July 2018
      Amended: July 2010

    • FC-1.10.3

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      Amended: July 2010
      Amended: January 2007

    • FC-1.10.4

      For customers falling under categories (c) to (g) in Paragraph FC-1.10.1, the information required under Paragraph FC-1.2.1 (for natural persons) or FC-1.2.7 (for legal entities) must be obtained. However, the verification, certification and due diligence requirements (contained in Paragraphs FC-1.2.3, FC-1.2.5, FC-1.2.8, FC-1.2.9 and FC-1.2.11), may be dispensed with.

      Amended: July 2010

    • FC-1.10.5

      Investment firm licenseesG wishing to apply simplified due diligence measures as allowed for under categories (c) to (g) of Paragraph FC-1.10.1 must retain documentary evidence supporting their categorisation of the customer.

      Amended: July 2010
      Amended: January 2007

    • FC-1.10.6

      Examples of such documentary evidence may include a printout from a regulator's website, confirming the licensed status of an institution, and internal papers attesting to a review of the AML/CFT measures applied in a jurisdiction.

      Amended: July 2010

    • FC-1.10.7

      Investment firm licenseesG may use authenticated SWIFT messages as a basis for confirmation of the identity of a financial institution under FC-1.10.1(d) and (e) where it is dealing as principal. For customers coming under Paragraph FC-1.10.1(d) and (e), investment firm licenseesG must also obtain and retain a written statement from the parent institution of the subsidiary concerned, confirming that the subsidiary is subject to the same AML/CFT measures as its parent.

      Amended: July 2010

    • FC-1.10.8

      Simplified customer due diligence measures must not be applied where a licenseeG knows, suspects, or has reason to suspect, that the applicant is engaged in money laundering or terrorism financing or that the transaction is carried out on behalf of another person engaged in money laundering or terrorism financing.

      Amended: July 2010

    • FC-1.10.9

      [This Paragraph was deleted in July 2018].

      Deleted: July 2018
      Amended: July 2010

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