Bahrain Seeks to Combat Financial Crimes as Suspicious Transactions Soar
A Staggering Rise in Suspicous Transactions
In an effort to tackle financial crimes, Bahrain’s Anti-Money Laundering Unit has recorded a staggering 136 suspicious transactions (STRs) until June this year. May witnessed the highest number of cases at 31, followed by 26 cases each in March and April, 20 cases in January, and 23 cases in February.
What are Suspicious Financial Transactions?
Suspicious financial transactions are typically submitted to the authorities by money exchanges and finance establishments when they raise suspicions about the source of the money or the individual involved. These transactions may involve unusual patterns, large sums of cash, or unexplained wealth.
The Financial Disclosure Law: A Tough Stance Against Financial Crimes
Under Bahrain’s financial disclosure law, which came into effect last June, top officials and their families face severe penalties for failing to declare their wealth. The penalties include:
- A fine of up to BD15,000
- Imprisonment for five years
- Removal from public service if there is an increase in their wealth disproportionate to their incomes
Powers Granted to Authorities
The law also grants authorities the right to:
- Seek confidential information from banks and companies during investigations
- Question those involved in suspicious financial dealings
- Fine officials who fail to submit their wealth statements on time up to BD10,000 or imprison them for three years, or both
Coverage of Government-Owned Companies
Companies in which the government has at least 50 per cent stake are also covered under the law. This move is seen as a significant step towards curbing financial crimes and ensuring transparency in Bahrain’s financial sector.
A Tough Stance Against Financial Crimes
Bahrain’s efforts to combat financial crimes demonstrate a commitment to transparency and accountability in the country’s financial sector. The financial disclosure law and anti-money laundering measures are designed to prevent financial crimes, protect the integrity of the financial system, and ensure that public officials act with transparency and honesty.