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Find out moreWelcome to the first edition of Law Update for 2025. As we begin this exciting year, we are pleased to turn our attention to one of the most dynamic sectors in the UAE and the broader GCC region – healthcare. Over the past several years, the region has seen unprecedented growth in this sector, driven by legislative advancements, technological innovations, and the increasing focus on sustainability and AI. As such, healthcare is set to be one of the most important sectors in the coming decade.
In this issue, we explore key themes that are significantly shaping the future of healthcare in the UAE, such as recent changes in foreign ownership laws. These reforms present a major opportunity for foreign investors, opening up new avenues for international collaborations and improving the overall healthcare infrastructure. The changes in ownership laws are an important milestone, and we provide an analysis of what this means for the industry and the various players involved.
Read NowAbdullah Rauf Puri - Associate - Banking and Finance
On 2 September 2021, the Central Bank of Bahrain (“CBB”) issued new requirements in respect of ‘dormant accounts’ and ‘unclaimed balances’ in Bahrain under a new section BC-4.20 of the Business and Market Conduct Module of Volume 1 and Volume 2 of the CBB Rulebook. These new requirements are issued with the aim to meet two key objectives – consumer protection on the one hand and safeguards against internal and external frauds on the other. This article provides an overview of the new requirements in respect of ‘dormant accounts’ and ‘unclaimed balances’ in Bahrain.
Banks must treat customer accounts as dormant accounts in the following cases:
Banks must notify the customer by mail, e-mail or other communication channel, when any of their accounts becomes inactive and must ensure that no withdrawal or transfer or outward clearing cheque is permitted from dormant accounts.
Banks must comply with the following additional requirements in transactions relating to dormant accounts:
Unclaimed Balances
Banks must treat the following balances that remain unpaid due to operational or other reasons as unclaimed balances:
Banks are required to make attempts to periodically contact the relevant customers or the rightful parties to return the unclaimed balances through different communication means. The licensee must maintain documentary evidence of such attempts.
Banks must report the particulars of dormant accounts and unclaimed balances in the relevant section of the Prudential Information Return. Conventional retail bank licensees must not transfer any of the balances in dormant accounts or unclaimed balances to their income statements.
Banks are required to establish policies and procedures to deal with dormant accounts and unclaimed balances which must include measures to contact the customer concerned, activation of the accounts where appropriate, return of the moneys to the customer and control measures to prevent frauds and misuse of such accounts. The policies must be approved by the board of directors of the CBB while the procedures must be approved by senior management.
The new rules clearly specify what activities may or may not be undertaken by banks in Bahrain in relation to the dormant accounts and unclaimed balances.
Al Tamimi and Company’s Banking and Finance team regularly advises on lender’s and borrower’s financing. For further information please contact Rafiq Jaffer (r.jaffer@tamimi.com)
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