Featured Product

    CBB Addresses Crowdfunding & Outsourcing Rules, Issues Other Updates

    May 09, 2022

    The Central Bank of Bahrain (CBB) issued regulations applicable to crowdfunding platform operators, proposed revisions to outsourcing requirements, and published a circular on resolving discrepancies in the Bahrain Credit Reference Bureau, BCRB, reporting. CBB also informed all listed companies and CBB licensees that disclosure of financial impact of COVID-19 in their interim and annual financial statements is no longer mandatory.

    Below are the key highlights of these recent developments:

    • The regulations for crowdfunding platform operators address equity-based and financing-based crowdfunding and are covered under the Crowdfunding Platform Operators Module (Module CFP) of the CBB Rulebook. The regulations cover principles governing the conduct of operations by the platform, rules on platform offers and disclosures, avoiding conflicts of interest, due diligence of borrowers/issuers through Know Your Customer (KYC), segregation of client money from platform operators, and other measures to ensure safe operation of the activity. The regulations also require crowdfunding platform operators to ensure suitability of the products being offered on the platform to retail clients.
    • The outsourcing requirements consultation, which ended on May 11, 2022, specifies, among others, that a licensee must not outsource the certain functions. These functions include compliance, anti-money laundering/combating the financing of terrorism (AML/CFT), financial control, risk management, and business line functions offering regulated services directly to the customers. However, certain support activities, processes and systems under these functions may be outsourced (for example call centers, data processing, credit recoveries, e-KYC solutions). The proposed requirements also specify the requirements that licensees must comply with prior to signing any outsourcing agreement. The proposed revisions to outsourcing requirements will replace the existing outsourcing requirements, as applicable. Examples of services that are typically outsourced include data processing, cloud services, customer call centers, and back-office-related activities
    • Furthermore, to reduce the discrepancies and data inconsistencies in the Bahrain Credit Reference Bureau, all licensees are required to immediately conduct a full data cleansing exercise to ensure that all client data (consumer and corporate), regardless of the sector or type of exposure, is accurately reported. The licensees are also required to compare and verify core system data with the Bahrain Credit Reference Bureau data on a quarterly basis, to resolve any discrepancies on a real time basis.


    Related Links


    Keywords: Middle East And Africa, Bahrain, Banking, Covid-19, Crowdfunding Service Providers, Outsourcing Arrangements, Disclosures, Reporting, AML CFT, CBB Rulebook, Regtech, Cloud Computing, Lending, Credit Risk, Credit Bureau Data Reporting, CBB

    Featured Experts
    Related Articles

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News

    MFSA Sets Out Supervisory Priorities, Issues Reporting Updates

    The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023

    March 02, 2023 WebPage Regulatory News

    German Regulators Issue Multiple Reporting Updates for Banks

    Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022

    March 02, 2023 WebPage Regulatory News

    BCBS Report Examines Impact of Basel III Framework for Banks

    The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.

    February 28, 2023 WebPage Regulatory News

    PRA Consults on Prudential Rules for "Simpler-Regime" Firms

    Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.

    February 28, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8806