Bahrain’s Efforts to Strengthen Anti-Money Laundering Framework

Introduction

Manama, Bahrain - The Kingdom of Bahrain is taking significant steps to enhance its anti-money laundering (AML) and combating the financing of terrorism (CFT) framework. This initiative aims to safeguard the country’s financial sector, contribute to national safety and security, and align with international standards set by the Financial Action Task Force (FATF).

Key Objectives

The primary goal of Bahrain’s AML/CFT efforts is to protect its financial systems from money laundering and terrorism financing threats. To achieve this objective, the country must ensure that all components of its AML/CFT framework work together seamlessly.

Key Intermediate Outcomes:

The FATF recommends achieving 11 key outcomes to ensure an effective AML/CFT system. These intermediate results are organized around thematic areas and will be assessed during mutual evaluations conducted by the FATF. The key outcomes include:

• Identifying, assessing, and understanding risks
• Regulating and supervising financial institutions
• Implementing customer due diligence measures
• Monitoring transactions and reporting suspicious activity
• Freezing assets related to terrorism financing
• Enhancing international cooperation

Effective Enforcement and Coordination

While implementing the technical requirements of the FATF Recommendations is crucial, Bahrain must also ensure that these measures are enforced effectively. This requires coordination among operational, law enforcement, and legal components to deliver tangible results.

Bolstering AML/CFT Framework

By demonstrating how well all components work together in response to identified risks, Bahrain can bolster its AML/CFT framework and contribute to a safer financial environment for all stakeholders. The country’s efforts will help strengthen the integrity of its financial sector, enhance national safety and security, and align with international standards.