Regulatory Alerts2015-06-01
Resolution pursuant to Law No. 28 of 2014 in respect of Real Estate Development
The Central Bank of Bahrain issued Resolution No. 28 of 2014 to regulate the appointment and duties of Project Accountants overseeing real estate development projects. The Resolution mandates that authorized retail banks manage dedicated project accounts, requiring a 20% deposit of the estimated project value and stipulating strict conditions regarding fund segregation, reporting, and withdrawal approvals by consulting engineers. It further establishes a centralized database of accountants and projects, defines the roles of principal and sub-developers, and sets forth procedural requirements for account agreements, fee structures, and regulatory oversight.
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