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Bahrain Regulatory Requirements for Financial Institutions: A Compliance Guide
Who Regulates Financial Institutions in Bahrain?
The Central Bank of Bahrain (CBB) serves as the single integrated regulator of Bahrain’s financial industry, responsible for maintaining monetary and financial stability in the Kingdom.
Key Regulations Affecting Financial Institutions in Bahrain
Financial institutions in Bahrain may be subject to various regulations issued by the CBB, including:
- Central Bank of Bahrain and Financial Institutions Law: Provides a comprehensive set of rules and guidelines that financial institutions must adhere to.
- CBB Rulebook: Operational Risk Management rules for Conventional Banks and Islamic Banks: Covers risk management and monitoring and oversight requirements.
- CBB Rulebook: Operational Risk Management rules for Insurance and Investment Business: Covers contractual and operational areas, including due diligence and outsourcing arrangements.
- CBB Rulebook: Outsourcing rules for Markets and Exchanges, Market Intermediaries, and Crypto-Asset businesses: Requires prior written approval from the CBB before committing to new material outsourcing arrangements.
Compliance Requirements for Cloud Services
Financial institutions using cloud services in Bahrain must ensure that they comply with applicable regulatory requirements, such as:
- Personal Data Protection Law (Law No. 30 of 2018): Requires adherence to data protection principles.
- GDPR compliance for processing personal data of EU citizens: Ensures the protection of personal data.
Assessing Compliance Needs
Financial institutions in Bahrain can take the following steps to better understand their compliance needs:
Step 1: Consider Workload Purpose and Data Categories
- Review the purpose of the workload(s) under consideration.
- Identify relevant categories of data.
Step 2: Review AWS’ Shared Responsibility Model
- Map AWS responsibilities and customer responsibilities according to each AWS service that will be used.
- Evaluate AWS’ compliance framework and tools for meeting regulatory requirements.
Step 3: Assess Materiality or Criticality
- Evaluate the materiality or criticality of the relevant workload(s) in light of local requirements.
- Determine necessary steps to ensure compliance with Bahrain’s regulatory requirements.
By following these steps, financial institutions can ensure compliance with Bahrain’s regulatory requirements and leverage cloud services to drive business growth and innovation.