Financial Crime World

Bahrain Takes a Tough Stand Against Financial Crimes: A Look at Bribery and Embezzlement in the Private Sector

In recent years, Bahrain has made significant strides to modernize its anti-corruption controls and create a just and propitious business environment. The country’s ratification of the United Nations Convention Against Corruption (UNCAC) and accession to the International Anti-Corruption Academy (IACA) have led to tangible progress towards superior legislative control.

Anti-Bribery Measures in Bahrain

As part of this effort, Bahrain has introduced amendments to its Penal Code aimed at tackling bribery and corruption in the private sector. Article 417 of the Penal Code defines which private sector participants may be considered criminally liable for acts of bribery, including:

  • Board directors
  • Employees
  • Individuals who solicit or receive bribes

Types of Bribery Offenses

The amendments also criminalize different types of bribery offenses under various articles, including:

  • Seeking a bribe before an act or omission (Article 418)
  • Receiving a bribe after the commission or omission of the act (Article 419)
  • Soliciting or receiving a bribe to commit or omit an act not part of one’s work functions (Article 420)

Penalties and Consequences

The court may impose fines ranging from BHD 500 to BHD 10,000 in addition to applicable criminal penalties. Article 423 provides for additional penalties and confiscation of the bribe.

Assessing Gifts as Bribes

In assessing whether a gift is considered a bribe, Bahrain’s anti-bribery provisions consider the accused’s intent. Relevant factors include:

  • The value and timing of the gift
  • The ability of the recipient to affect the giver’s position

Whistleblower Protection

The amended measures also provide leeway for offenders who report crimes to authorities prior to detection. Article 426 allows for reduced punishments or even complete relief from penalties in such cases.

Bahrain’s Commitment to Eradicating Corruption

Bahrain’s commitment to eradicating corruption from its private sector is evident in these amendments, which mark a significant improvement over previous practices of confining bribery offenses to conduct involving public officials. The country’s Financial Crime team at Al Tamimi & Company regularly advises on anti-bribery measures and corruption in the region.

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