Bahrain Enhances Regulatory Framework to Combat Financial Crime
Strengthening Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Regime
Manama, Bahrain - In a bid to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime, Bahrain has made significant strides in implementing international standards set by the Financial Action Task Force (FATF), according to the latest follow-up report.
Bahrain’s Commitment to AML/CFT
“Bahrain is committed to maintaining a robust AML/CFT regime that meets international standards,” said a senior government official. “We recognize the importance of preventing the misuse of our financial system for illicit purposes and are dedicated to working closely with our international partners to achieve this goal.”
Key Progress in Implementing FATF Recommendations
The FATF follow-up report highlights Bahrain’s efforts to improve its regulatory framework, enhance cooperation among domestic authorities, and increase transparency in financial transactions. Some key areas where Bahrain has made significant progress include:
- Establishment of a robust risk assessment framework
- Enhancement of national cooperation and coordination among authorities
- Introduction of targeted financial sanctions related to terrorism and terrorist financing
Praise for Transparency Efforts
Bahrain also received praise for its efforts to improve transparency in beneficial ownership, strengthen customer due diligence requirements, and enhance record-keeping practices.
Areas for Improvement
However, the report noted that Bahrain still faces challenges in implementing certain recommendations, including:
- Regulation and supervision of designated non-financial businesses and professions (DNFBPs)
- Legislative and regulatory reforms to address these areas
FATF Follow-Up Report: A Key Assessment Tool
The FATF follow-up report is a key assessment tool used by the global community to monitor countries’ progress in implementing AML/CFT standards. Bahrain’s compliance level, as per the report, is largely compliant (LC) for most of the recommendations.
Commitment to Implementing International AML/CFT Standards
“Bahrain’s commitment to implementing international AML/CFT standards is evident through its efforts to strengthen its regulatory framework and enhance cooperation among domestic authorities,” said a FATF official. “We will continue to work with Bahrain to ensure that it meets all the necessary requirements.”
Maintaining a Secure Financial System
Bahrain is committed to ensuring that its financial system remains secure and resilient against illicit activities, according to government officials.