RESTRICTED
WORLD TRADE S/FIN/W/12/Add.6/Rev.1
10December 1997
ORGANIZATION(97-5436)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM BAHRAIN
Revised Offer onFinancial Services
Revision
Thefollowing communication iscirculated attherequest ofBahrain toMembers ofthe
Committee onTrade inFinancial Services.
_______________
BahrainherebysubmitsitsrevisedconditionalofferofSpecificCommitmentsinfinancialservices
fortheresumed financial services negotiations. Thisrevised offershallbeconsidered asanaddition
totheother previous valid offer intheInsurance andRe-Insurance.
Bahrain retains itsright tomodify orwithdraw allorparts ofitsspecific commitments on
financial services, inaccordance withtheSecond Decision onFinancial Services of21July1995 as
amended bytheDecision of29May1997.S/FIN/W/12/Add.6/Rev.1
Page2BAHRAIN
SPECIFIC COMMITMENTS -REVISED OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
B. Banking andOther Financial Services (excluding insurance)
Thecommitments onfinancial services aremade inaccordance withtheGATS andtheAnnex onFinancial Services. Allthecommitments inthisSchedule
aresubject todomestic laws ofBahrain, aswellasanyguidelines, rules, regulations, terms andconditions oftheBahrain Monetary Agency (BMA) and/or
anyother relevant authority orbody inBahrain, which areconsistent withArticle VIoftheGATS andparagraph 2oftheAnnex onFinancial Services. In
particular, these commitments aresubject totheBahrain Monetary Agency Law(Amiri Decree -LawNo.(23)of1973), theCommercial Companies Law
(Amiri Decree -LawNo.(28)of1975), theLabour LawforthePrivate Sector (Amiri Decree -LawNo.(23)of1976), theBahrain Stock Exchange Law
(Amiri Decree -LawNo.(4)of1978), andtheLand Registration Law(Amiri Decree -LawNo.(15)of1979) asamended from time totime, andtoall
regulations anddirectives issued pursuant tosuch laws from time totime. Furthermore, these commitments aresubject totheStandard Conditions and
Licensing Criteria foreach category oflicence currently offered bytheBMA andtoanyrestrictions imposed onanysuch licence including, inparticular and
unless otherwise permitted bytheBMA, restrictions imposed onOffshore Banking Units (OBUs) andInvestment Banks (IBs) dealing withresidents of
Bahrain.
(a) Acceptance ofdeposits and
other repayable funds from
thepublic.(1) None ifdone outside Bahrain.
Undertaking thisactivity (including
soliciting andadvertising) in/from Bahrain
requires alicence from theBMA.
(2) None.(1) None.
(2) None.
(3) Unbound saveasprovided forinthe
horizontal section above andinrespect of
themeasures detailed below. Licence
required from BMA.(3) Forforeign branches ofFCBs, unbound
forsub-branching.S/FIN/W/12/Add.6/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Foreign banks mayestablish aslocal
subsidiaries orbranches. Foreign
ownership oflocally incorporated banks
restricted to49% ifbusiness istobe
undertaken "onshore" Bahrain (i.e.with
residents ofBahrain). 100% foreign
ownership permitted ifbusiness istobe
undertaken "offshore" Bahrain (i.e.with
non-residents ofBahrain).
Nobanking activities tobeundertaken by
alimited liability company (WLL).
(4) Unbound saveasprovided forinthe
horizontal section above.(4) Unbound saveasprovided forinthe
horizontal section above.
(b) Lending ofalltypes,
including consumer credit,
mortgage credit, factoring
andfinancing of
commercial transaction.(1) Asfor(a)(1)above forthisactivity.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
Unbound forownership ofproperty in
Bahrain.(1) None.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
Unbound forownership ofproperty in
Bahrain.
(4) Unbound saveasprovided forinthe
horizontal section above.(4) Unbound saveasprovided forinthe
horizontal section above.S/FIN/W/12/Add.6/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(c) Financial leasing. (1) Asfor(a)(1)above forthisactivity.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) None.
(2) None.
(3) Unbound.
(4) Unbound saveasprovided forinthe
horizontal section above.
(d) Allpayment andmoney
transmission services,
including credit, charge and
debit cards, travellers
cheques andbankers drafts.(1) Asfor(a)(1)above forthisactivity.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) None.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
(4) Unbound saveasprovided forinthe
horizontal section above.
(e) Guarantees and
commitments(1) Asfor(a)(1)above forthisactivity.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) None.
(2) None.
(3) Asfor(a)(3)above forthisactivity.
(4) Unbound saveasprovided forinthe
horizontal section above.S/FIN/W/12/Add.6/Rev.1
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(f) Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the-counter market
orotherwise, thefollowing:
- money market instruments
(including cheques, bills,
certificates ofdeposits)
- foreign exchange
- derivative products
including, butnotlimited
to,futures andoptions
- exchange rateandinterest
rateinstruments, including
products such asswaps,
forward rateagreements
- transferable securities
- other negotiable instruments
andfinancial assets,
including bullion.(1) Unbound forequity andother securities
listed ontheBSE. Licence required from
BMA ifactivity isundertaken in/from
Bahrain forcustomers 'account.
(2) Unbound forequity andother securities
listed ontheBSE.
(3) Asfor(a)(3)above forthisactivity. As
for(f)(3)onnational treatment.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) Unbound.
(2) Unbound.
(3) Unbound forequity andother securities
listed ontheBSE.
Transactions ontheBahrain Stock
Exchange (BSE) must bethrough a
licensed Stock Broker. Transactions for
listed Bonds andWarrants canbedone
OTC. Stock Brokers andMarket Makers
forsecurities ontheBahrain Stock
Exchange must beeither Bahraini
nationals (individuals orlocally
incorporated companies withaminimum
of51% Bahraini ownership) andbe
resident inBahrain, orbebranches of
foreign companies undertaking such
business ininternational securities.
AMoney Broker must belocally
incorporated with51% Bahraini
ownership andrequires alicence from the
BMA.
(4) Unbound saveasprovided forinthe
horizontal section above.S/FIN/W/12/Add.6/Rev.1
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(g) Participation inissues ofall
kinds ofsecurities,
including underwriting and
placement asagent
(whether publicly or
privately) andprovision of
services related tosuch
issues.(1) Unbound forequity andother securities
listed ontheBSE. Licence required from
BMA ifactivity isundertaken in/from
Bahrain forcustomers 'account.
(2) Unbound forequity andother securities
listed ontheBSE.
(3) Licence required from BMA ifactivity is
undertaken in/from Bahrain.
Stockbrokers andMarket Makers for
securities ontheBahrain Stock Exchange
must beeither Bahraini nationals
(individuals orlocally incorporated
companies withaminimum of51%
Bahraini ownership) andberesident in
Bahrain, orbebranches offoreign
companies undertaking such business in
international securities.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) Unbound.
(2) Unbound.
(3) Asfor(g)(3)onmarket access.
(4) Unbound saveasprovided forinthe
horizontal section above.
(h) Money broking. (1) None.
(2) None.
(3) Licence required from BMA. AMoney
Broker must belocally incorporated with
51% Bahraini ownership.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) None.
(2) None.
(3) Asfor(h)(3)formarket access.
(4) Unbound saveasprovided forinthe
horizontal section above.S/FIN/W/12/Add.6/Rev.1
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(i) Asset management, such as
cashorportfolio
management, allforms of
collective investment
management, pension fund
management, custodial,
depository andtrust
services.(1) Asfor(a)(1)above forthisactivity.
Unbound forBSElisted equity andother
securities.
(2) Unbound forBSElisted equity andother
securities.
(3) Licence required from theBMA.
Fordepository services inrespect ofBSE
listed equity andother securities, approval
required from theBSE.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) Unbound.
(2) Unbound.
(3) Nolimited liability companies (WLLs)
conundertake making investments on
behalf ofthird persons.
(4) Unbound saveasprovided forinthe
horizontal section above.
(j) Settlement andclearing
services forfinancial assets,
including securities,
derivative products, and
other negotiable
instruments.(1) Unbound forBDcheques, must be
through BMA. ForBSElisted equity and
other securities, must bethrough BSE.
(2) Unbound forBDcheques, must bedone
through BMA. ForBSElisted equity and
other securities, must bethrough BSE.
(3) Unbound forBDclearing.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) Asfor(j)(1)inmarket access.
(2) Asfor(j)(2)inmarket access.
(3) Asfor(j)(3)inmarket access.
(4) Unbound saveasprovided forinthe
horizontal section above.S/FIN/W/12/Add.6/Rev.1
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
k) Provision andtransfer of
financial information, and
financial dataprocessing
andrelated software by
suppliers ofother financial
services.(1) Unbound forBSElisted equity andother
securities.
(2) Unbound forBSElisted equity andother
securities.
(3) Unbound forBSElisted equity andother
securities. Licence from theMinistry of
Cabinet Affairs andInformation andthe
Ministry ofTransportation required for
provision andtransfer offinancial
information. Confidentiality requirements
forbanks 'customers setbytheAgency
apply.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) Unbound forBSElisted equity andother
securities.
(2) Unbound forBSElisted equity andother
securities.
(3) Asfor(k)(3)inmarket access.
(4) Unbound saveasprovided forinthe
horizontal section above.
(1) Advisory, intermediation
andother auxiliary financial
services onalltheactivities
listed insubparagraphs (a)
through (k)above,
including credit reference
andanalysis, investment
andportfolio research and
advice, advice on
acquisitions andon
corporate restructuring and
strategy.(1) Asfor(a)(1)above forthisactivity.
(2) None.
(3) Investment Advisers andRepresentative
Offices require licence toundertake
activities in/from Bahrain. Credit
referencing agencies should adhere to
requirements forconfidentiality setbythe
BMA forbanks 'customers.
(4) Unbound saveasprovided forinthe
horizontal section above.(1) None.
(2) None.
(3) None.
(4) Unbound saveasprovided forinthe
horizontal section above.