Bahrain cbank to curb unlicensed services
Manama, March 31, 2011
The Central Bank of Bahrain (CBB) has issued for public consultation a draft regulation prohibiting the offering of financial services by any person not licensed by the CBB.
The regulation has been issued in accordance with the requirements of Article 42 of the Central Bank of Bahrain and Financial Institutions Law 2006, a statement said.
This regulation is being proposed to strengthen the Central Bank’s ability to protect customers of licensed financial institutions. Its objective is to ensure that unlicensed entities are prohibited from offering financial services within the Kingdom of Bahrain, and it establishes appropriate penalties for breaches of this prohibition.
“The CBB plays a significant role in the protection of consumers of financial services. This regulation will reinforce its commitment to the protection of the general public,” said Ahmed Al Bassam, director of the Licensing and Policy Directorate at the CBB.
The CBB has a policy of consulting on such regulations and values the comments received as part of its regulatory framework, the statement said.
The proposed regulation is available on the CBB website (cbb.gov.bh). The consultation period for this regulation ends on May 3. – TradeArabia News Service