Bahrain Tightens Financial Crime Laws with Fresh Round of Amendments
Stricter Anti-Money Laundering (AML) Regime in the MENA Region
Bahrain has taken a significant step towards imposing one of the stricter anti-money laundering regimes in the Middle East and North Africa region, following a vote by its parliament to approve a royal decree amending key provisions of the country’s AML law.
Key Changes to Enforcement Culture Across Regulated Sectors
The amendments will see significant changes to the enforcement culture across regulated sectors. Companies that fail to properly implement compliance measures prescribed by the law could face fines of up to 50,000 Bahraini dinars, which can be multiplied by the number of violations in case of multiple failures.
International Best Practice Standards
This move is part of Bahrain’s ongoing efforts to align its financial crime enforcement with international best practice standards. The country has made significant strides in recent years, rising to second place in the World Justice Project Ease of Doing Business Index 2021 for the MENA region.
New Administrative Penalty and Enhanced Compliance Requirements
- General Prohibition on Targeted Financial Sanctions: A general prohibition on all natural and legal persons to implement targeted financial sanctions imposed by the United Nations Security Council
- Extension of Corporate Liability Provisions: Extension of corporate liability provisions for money laundering and terrorism financing offences
- Broadened Key Definitions: Broadening of key definitions to increase the scope of activity that could potentially fall within the remit of the AML law
Real Estate Regulatory Authority (RERA) Enforcement Actions
The Real Estate Regulatory Authority in Bahrain has already seen a significant step up in enforcement actions against companies that fail to comply with RERA guidelines. The latest amendment is expected to provide a strong incentive for regulated entities to prioritize compliance and ensure that they are meeting the latest requirements.
Commitment to Business-Friendly Environment and Financial Integrity
Bahrain’s move to tighten its financial crime laws reflects its commitment to maintaining a business-friendly environment while also ensuring that it meets international standards of financial integrity. As the country continues to attract foreign investment and businesses, its reputation as a leader in AML enforcement is likely to be strengthened.