Financial Crime World

Financial Crime on the Rise in Bahrain: What You Need to Know

Introduction

The Kingdom of Bahrain has been strengthening its efforts to combat financial crime, highlighting the importance of understanding this complex issue. With recent FinCEN leaks shedding light on the growing threat of money laundering and terrorist financing, it is clear that financial institutions must take proactive measures to mitigate risks.

Regulatory Risks and Money Laundering: A Growing Concern

The Central Bank of Bahrain has identified regulatory risk and money laundering as major areas of concern for financial institutions. In response, banks are adopting a risk-based approach to identify and address potential threats, including derisking in high-risk cases.

Key Initiatives to Combat Financial Crime

  • BIBF’s Anti Money Laundering Academy: The Bahrain Institute of Banking and Finance (BIBF) has launched an Anti Money Laundering Academy, offering a range of courses on compliance, financial crime, and fraud prevention.
  • Online Training Platform: The academy’s online training platform is designed to meet the requirements of the Central Bank of Bahrain’s regulations.

Program Categories

The BIBF’s AML Academy offers programs categorized under three main areas:

  • AML (Anti Money Laundering): Programs focused on detecting and preventing money laundering risks.
  • Compliance: Courses aimed at enhancing professional knowledge and technical capabilities in compliance.
  • Fraud Prevention: Training programs designed to equip professionals with the skills needed to prevent fraud-related risks.

International Cooperation and Support

Bahrain’s commitment to combating financial crime is reflected in its membership of:

  • Financial Action Task Force (FATF): Bahrain is a member of FATF through the Gulf Cooperation Council.
  • MENA-FATF: The country is also a member of the regional MENA-FATF.
  • Hosting the secretariat: Bahrain has been chosen to host the secretariat of MENA-FATF.

Conclusion

Financial crime poses a significant threat to the stability of Bahrain’s financial sector. To combat this issue effectively, it is essential for financial institutions to adopt a proactive approach to risk management, including the implementation of robust AML procedures and training programs. By working together, Bahrain can strengthen its efforts to prevent financial crime and maintain a secure financial environment.