CBB: Central Bank of Bahrain

The CBB was established on 6 September 2006 under the CBB and Financial Institutions Law 2006. It replaced the Bahrain Monetary Agency (BMA), which had carried out central banking and regulatory functions since 1973. By consolidating all financial sector oversight under one roof, the CBB creates a single, consistent framework for financial policymaking across the Kingdom.\n\nArticle 3 of the CBB and Financial Institutions Law 2006 defines the CBB's two core objectives: ensuring monetary stability and ensuring financial stability in Bahrain. As the sole regulator, the CBB licenses and supervises banks, exchange houses, insurers, investment firms, and capital market participants operating in or from Bahrain.\n\nFor anyone transacting with a Bahrain-based financial institution - whether opening a bank account, sending a remittance, or using an exchange house - the CBB is the licensing authority to check. A provider regulated by the CBB will carry a CBB licence number, which should be verifiable on the CBB's official website at cbb.gov.bh.

Expats living in Bahrain or sending money through Bahrain-based corridors interact with CBB-licensed entities directly. Exchange houses and retail banks operating in Bahrain require a CBB licence. Before using any money-transfer or banking service in Bahrain, confirming the provider holds a current CBB licence is a basic due-diligence step.\n\nA note on FX risk: when transferring funds out of Bahrain, the exchange rate applied by a CBB-licensed provider can vary between institutions even when the headline transfer fee looks identical. Always ask for the recipient amount in the destination currency at the moment of the quote - the implied FX margin is where costs are frequently embedded, regardless of what the fee schedule shows.