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Location: Central Bank of Bahrain Volume 4—Investment Business > Part A > Business Standards > FC Financial Crime > FC-7 NCCT Measures and Terrorist Financing
  • FC-7 NCCT Measures and Terrorist Financing

    • FC-7.1 Special Measures for Non-Cooperative Countries or Territories ('NCCTs')

      • FC-7.1.1

        Investment firm licenseesG must give special attention to any dealings they may have with entities or persons domiciled in countries or territories which are:

        (a) Identified by the FATF as being 'non-cooperative'; or
        (b) Notified to investment firm licenseesG from time to time by the CBB.
        Amended: January 2007

      • FC-7.1.2

        Whenever transactions with such parties have no apparent economic or visible lawful purpose, their background and purpose must be re-examined and the findings documented. If suspicions remain about the transaction, these must be reported to the relevant authoritiesG in accordance with Section FC-4.2.

      • FC-7.1.3

        Investment firm licenseesG must apply enhanced due diligence measures to business relationships and transactions with natural and legal persons, and financial institutions, from countries where such measures are called for by the FATF. The type of enhanced due diligence measures applied must be effective and proportionate to the risks.

        Added: October 2014

      • FC-7.1.4

        With regard to jurisdictions identified as NCCTs or those which in the opinion of the CBB, do not have adequate AML/CFT systems, the CBB reserves the right to:

        (a) Refuse the establishment of subsidiaries or branches or representative offices of financial institutions from such jurisdictions;
        (b) Limit business relationships or financial transactions with such jurisdictions or persons in those jurisdictions;
        (c) Prohibit financial institutions from relying on third parties located in such jurisdictions to conduct elements of the CDD process;
        (d) Require financial institutions to review and amend, or if necessary terminate, correspondent relationships with financial institutions in such jurisdictions;
        (e) Require increased supervisory examination and/or external audit requirements for branches and subsidiaries of financial institutions based in such jurisdictions; or
        (f) Require increased external audit requirements for financial groups with respect to any of their branches and subsidiaries located in such jurisdictions.
        Amended: January 2018
        Added: October 2014

    • FC-7.2 Terrorist Financing

      • FC-7.2.1AA

        Investment firm licenseesG must implement and comply with United Nations Security Council resolutions relating to the prevention and suppression of terrorism and terrorist financing. Investment firm licenseesG must freeze, without delay, the funds or other assets of, and to ensure that no funds or other assets are made available, directly or indirectly, to or for the benefit of, any person or entity either (i) designated by, or under the authority of, the United Nations Security Council under Chapter VII of the Charter of the United Nations, including in accordance with resolution 1267(1999) and its successor resolutions as well as Resolution 2178(2014) or (ii) designated as pursuant to Resolution 1373(2001).

        Added: April 2017

      • FC-7.2.1

        Investment firm licenseesG must comply in full with the provisions of the UN Security Council Anti-terrorism Resolution No. 1373 of 2001 ('UNSCR 1373').

      • FC-7.2.2

        [This Paragraph was deleted in January 2018].

        Deleted: January 2018
        Amended: January 2007

      • FC-7.2.3

        A copy of UNSCR 1373 is included in Part B of Volume 1 (Conventional Banks), under 'Supplementary Information' on the BMA Website.

      • FC-7.2.4

        Investment firm licenseesG must report to the CBB details of:

        (a) Funds or other financial assets or economic resources held with them which may be the subject of Article 1, paragraphs c) and d) of UNSCR 1373; and
        (b) All claims, whether actual or contingent, which the licenseeG has on persons and entities which may be the subject of Article 1, paragraphs c) and d) of UNSCR 1373.
        Amended: January 2007

      • FC-7.2.5

        For the purposes of Paragraph FC-7.2.4, 'funds or other financial resources' includes (but is not limited to) shares in any undertaking owned or controlled by the persons and entities referred to in Article 1, paragraph c) and d) of UNSCR 1373, and any associated dividends received by the licensee.

      • FC-7.2.6

        All reports or notifications under this Section must be made to the CBB's Compliance Directorate.

        Amended: January 2007

      • FC-7.2.7

        See Section FC-4.3 for the Compliance Directorate’s contact details.

        Amended: January 2007

    • FC-7.3 Designated Persons and Entities

      • FC-7.3.1

        Without prejudice to the general duty of all investment firm licenseesG to exercise the utmost care when dealing with persons or entities who might come under Article 1, paragraphs (c) and (d) of UNSCR 1373, investment firm licenseesG must not deal with any persons or entities designated by the CBB as potentially linked to terrorist activity.

        Amended: January 2007

      • FC-7.3.2

        The CBB from time to time issues to investment firm licenseesG lists of designated persons and entities believed linked to terrorism. Investment firm licenseesG are required to verify that they have no dealings with these designated persons and entities, and report back their findings to the CBB. Names designated by the CBB include persons and entities designated by the United Nations, under UN Security Council Resolution 1267 ('UNSCR 1267').

        Amended: January 2007

      • FC-7.3.3

        Investment firm licenseesG must report to the relevant authoritiesG , using the procedures contained in Section FC-4.2, details of any accounts or other dealings with designated persons and entities, and comply with any subsequent directions issued by the relevant authoritiesG .

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