The Central Bank of Bahrain has opened a consultation on proposals to revise client money safeguarding requirements applying to Payment Service Providers (PSPs) and Crowdfunding Platform Operators, alongside a questionnaire to gather feedback on implementation implications. The consultation focuses on the practicality and burden of specific measures, preferred safeguarding methods, and the operational and cost impact for licensees. For crowdfunding platform operators, the proposed framework centres on holding client assets separate from the firm’s own funds and safeguarding client money via a trust or escrow account or fiduciary arrangement with a retail bank, insurance from a regulated insurer, or a bank guarantee, with additional expectations around third-party verification for fiduciary arrangements and specified controls. For PSPs that receive client money, the proposed approach includes next-business-day deposit of client money into a segregated account, safeguarding via a trust account, insurance, or a retail bank guarantee, and additional governance and control features such as contractual arrangements with the bank, reconciliation and audit expectations, and a requirement for client money attributable to overseas operations to be held with a bank rated AA- or above. Comments, including nil responses, and completed consultation questions are requested by 10 November 2025.
Central Bank of Bahrain 2025-10-27
Central Bank of Bahrain consults on revised client money safeguarding rules for payment service providers and crowdfunding platforms
The Central Bank of Bahrain is consulting on proposed revisions to client money safeguarding requirements for Payment Service Providers and Crowdfunding Platform Operators. The proposals include measures such as segregating client assets, using trust or escrow accounts, and implementing third-party verification and governance controls. Feedback is sought on the practicality, burden, and cost impact of these measures.