Financial Crime World

Financial Regulators Crack Down on Crime in Bahrain: The Role of the AML/CFT National Policy Committee

Establishment of the AML/CFT National Policy Committee (NPC)

In a decisive move against financial crimes, the AML/CFT National Policy Committee (NPC) was established in 2001 by Decree Law No. (4). This proactive stance against money laundering and terrorist financing has been instrumental in enhancing Bahrain’s regulatory framework.

Composition of the NPC

The NPC, chaired by the Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain, comprises senior representatives from various national authorities:

  • Central Bank of Bahrain
  • Ministry of Interior
  • Ministry of Foreign Affairs
  • Public Prosecution
  • Ministry of Industry, Commerce, and Tourism
  • Survey and Land Registration Bureau
  • Ministry of Finance
  • Ministry of Justice and Islamic Affairs
  • Ministry of Labor and Social Development
  • National Security Authority
  • Ministry of Youth and Sports Affair
  • Legislation and Legal Opinion Commission
  • Customs Affairs

Mandate of the NPC

Article (4) of Decree Law No. (4) of 2001 outlines the mandate of the NPC, which includes the following:

  • Formulation of Anti-Money Laundering (AML) policies and strategies
  • Establishment of general policies for combating Money Laundering
  • Issuance of guidelines on the reporting of suspicious transactions in collaboration with relevant entities
  • Study of international and regional developments to update regulations
  • Coordination with entities for implementing international conventions or treaties

Anti-Money Laundering Policies and Strategies

The NPC formulates policies and strategies aimed at preventing and controlling money laundering and terrorist financing in Bahrain.

Establishment of General Policies

The NPC sets up general policies for combating money laundering and terrorist financing, ensuring that Bahrain maintains a robust regulatory framework.

Guidelines on Suspicious Transaction Reporting

The NPC collaborates with relevant entities to issue guidelines on the reporting of suspicious transactions.

Staying Informed of International Developments

The NPC keeps up-to-date with international and regional developments that may necessitate the updating of current regulations.

Implementation of International Conventions and Treaties

The NPC liaises with entities to implement international conventions and treaties aimed at combating money laundering and terrorist financing.

Regular Meetings and Information Exchange

Regular meetings of the NPC provide an essential platform for discussing money laundering issues and voting on measures to mitigate risks.

Members of the NPC exchange valuable insights and expertise, thereby enhancing Bahrain’s regulatory framework and safeguarding its financial system against illicit activities.

In this collaborative effort, the NPC plays a pivotal role in ensuring that Bahrain remains a reputable and secure hub for financial transactions.