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Welcome to the latest edition of Law Update titled “Rise of Generative AI.”
In this edition, we dive into the dynamic world of Technology, Media, and Telecommunications (TMT) across the Middle East and North Africa (MENA) region. TMT continues to play a vital role in positioning the region as an international business and social hub, driving significant growth and innovation.
Our focus in this Law Update is on the sector’s ongoing potential to advance and propel the region toward a more digital economy. We explore the benefits of embracing a digital transformation and how local authorities have responded by enhancing regulations to accommodate the evolving TMT landscape.
This edition covers a range of topics, including – the new Telecommunications & Information Technology Law in Saudi Arabia, the intricacies of trademarks in the Metaverse, and the legal challenges faced by the video game industry. Additionally, we take a regional perspective, discussing jurisdictions such as Kuwait, Saudi Arabia, UAE, Oman, and Bahrain to provide a comprehensive understanding of the TMT landscape.
We hope you thoroughly enjoy this packed issue of Law Update, filled with captivating articles that address key legal issues within a vital sector for the region.Read the full edition
Abdullah 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:
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 (email@example.com)
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