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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-5 Controllers > GR-5.1 Key Provisions
  • GR-5.1 Key Provisions

    • GR-5.1.1

      LicenseesG must obtain prior approval from the CBB for any of the following changes to their controllersG (as defined in Section GR-5.2):

      (a) A new controllerG ;
      (b) An existing controllerG increasing its holding from below 20% to above 20%;
      (c) An existing controllerG increasing its holding from below 50% to above 50%; and
      (d) An existing controllerG reducing its holding from above 50% to below 50%.
      October 2010

    • GR-5.1.1A

      LicenseesG must not incur or otherwise have an exposure (either directly or indirectly) to their controllersG , including subsidiariesG and associatedG companies of such controllersG .

      Added: April 2019

    • GR-5.1.1B

      For the purpose of Paragraph GR-5.1.1A, licenseesG that already have an exposure to controllersG must have an action plan agreed with the CBB's supervisory point of contact to address such exposures within a timeline agreed with the CBB.

      Added: April 2019

    • GR-5.1.2

      Articles 52 to 56 of the CBB Law require notification to the CBB of all controllersG of licenseesG and of listed companies; it further gives the CBB the right to refuse approval of controllersG if deemed damaging to the interests of the market, customers, or in contravention of the criteria set by the CBB.

      October 2010

    • GR-5.1.3

      Requests for approval under Paragraph GR-5.1.1 must be made by submitting a duly completed Form 2 (Application for Authorisation of Controller) to the CBB. Notification must be made by the controllerG or intended controllerG , and by the licenseeG where it is aware of the change.

      October 2010

    • GR-5.1.4

      If, as a result of circumstances outside the licensee'sG knowledge and/or control, one of the changes specified in Paragraph GR-5.1.1 is triggered prior to CBB approval being sought or obtained, the licenseeG must notify the CBB no later than 15 calendar days from the date on which those changes have occurred.

      Amended: January 2017
      October 2010

    • GR-5.1.5

      For approval under Rule GR-5.1.1 to be granted, the applicant must satisfy the CBB that the proposed change in controllerG poses no undue risks to the licenseeG or its customers, and is not damaging to the interests of the market, as defined in the suitability criteria for controllersG , contained in Section GR-5.3.

      October 2010

    • GR-5.1.6

      An approval of controllerG is valid for the period specified in the approval letter issued by the CBB. The CBB may impose any restrictions that it considers necessary to be observed when granting its approval.

      October 2010

    • GR-5.1.7

      The approval process is specified in Section GR-5.4.

      October 2010

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