Here is the converted article in markdown format:

Customer Due Diligence Requirements for Islamic Banks in Bahrain

The Central Bank of Bahrain’s Rulebook, Volume 2: Islamic Banks outlines the requirements for identifying and verifying the identity of customers in face-to-face business dealings.

Key Takeaways

• Original Identification Documents: Customers must provide original identification documents that are certified by an authorized official or a designated person from a GCC or FATF member state.
  • Certification involves writing on the copy “original sighted” along with the date and signature of the authorized official or designated person.
• Electronic Copies: Equivalent measures must be taken for electronic copies, such as using a secure digital signature or encryption.
• Legal Entities or Arrangements: If the customer is a legal entity or arrangement (e.g., trust), the Islamic bank licensee must obtain and record information from original identification documents, databases, or websites to identify the customer and verify its identity, legal existence, and structure.
  • This includes identifying beneficial owners through information such as the identity of natural persons who ultimately have a controlling ownership interest in the legal person.
• Risk Assessments: In assessing the risk profile of the customer, the Islamic bank licensee may consider obtaining other information, including audited financial statements.

Purpose of Customer Due Diligence Requirements

These requirements aim to ensure that Islamic banks in Bahrain comply with international anti-money laundering and combating the financing of terrorism (AML/CFT) standards, as set by the Financial Action Task Force (FATF) and the Gulf Cooperation Council (GCC).