Bahrain’s Anti-Money Laundering Law: Key Provisions

Introduction

The anti-money laundering law in Bahrain aims to prevent and prohibit money laundering activities by establishing a system for reporting suspicious transactions, authorizing financial institutions to freeze assets related to money laundering, and allowing the exchange of information with foreign authorities.

Key Provisions

• Establishment of Enforcement Unit: The law establishes an Enforcement Unit to investigate and prosecute money laundering offenses.
• Suspicious Transaction Reporting: Financial institutions are required to report suspicious transactions to the authorities.
• Asset Freezing: Authorities have the authority to freeze assets related to money laundering activities.
• Search and Seizure Powers: Court orders can be obtained to search premises, seize documents, and freeze assets.
• Information Exchange: The law allows for the exchange of information with foreign authorities to combat money laundering.

Penalties and Fines

• A person found guilty of money laundering may be sentenced to imprisonment for a period not less than six months nor exceeding three years.
• The maximum fine for money laundering is 50,000 Bahraini Dinars (BHD) or the equivalent in foreign currency.
• Any person who intentionally conceals, disguises or transfers money or assets to commit an offense under this law shall be punished with imprisonment for a period not less than six months nor exceeding three years and with a fine of 25,000 BHD or the equivalent in foreign currency.

Confiscation of Property

The law provides for the confiscation of property and assets acquired through money laundering activities.