The Central Bank of Bahrain has introduced a new set of fit and proper requirements governing appointments of board members and senior management at licensed financial institutions. The rules are consolidated into a single Fit and Proper Module in the Common Volume of the CBB Rulebook, replacing requirements previously dispersed across the Licensing Requirements, Authorisation, and Training and Competency Modules in different Rulebook volumes. The Module reduces the number of senior management roles requiring CBB prior approval, removes prescriptive qualifications and core competency requirements applied on a “one size fits all” basis, and requires licensees to develop their own standards. It also changes the supervisory approach by reducing CBB involvement in senior management appointments and placing explicit responsibility on the board and chief executive officer to ensure the suitability of individuals in senior management positions. CBB prior approval requirements for boards and senior managers take effect from 1 April 2025, with the remaining requirements effective from 1 October 2025. The Module applies to all CBB licensees.
Central Bank of Bahrain 2025-03-04
Central Bank of Bahrain issues new Fit and Proper Module cutting prior approvals for senior managers and shifting accountability to boards and CEOs
The Central Bank of Bahrain has introduced a consolidated Fit and Proper Module in its Rulebook, streamlining requirements for board and senior management appointments at licensed financial institutions. The new rules reduce roles needing prior CBB approval and eliminate uniform qualifications, shifting responsibility to boards and CEOs to ensure suitability. The Module applies to all CBB licensees, with phased implementation starting 1 April 2025.