Financial Crime World

Bahrian Tighens the Screws on Financial Crime: Proposed Amendments to AML Law Aim to Enforce Stricter Standards

Bahrain’s Parliament has taken a significant step towards imposing one of the strictest anti-money laundering (AML) regimes in the Middle East and North Africa (MENA) region, with the approval of Royal Decree No. 29 of 2020 aimed at amending key provisions of the country’s AML Law.

Background

Bahrain continues to climb the World Justice Project Ease of Doing Business Index 2021 rankings, having risen to second place in the MENA region. The kingdom’s pursuit of a business-friendly environment has also been replicated in its approach to financial crime enforcement.

Proposed Amendments

The proposed amendments have far-reaching implications for regulated sectors and aim to:

  • Improve Compliance: Companies found guilty of failing to properly implement compliance measures prescribed by the law will face hefty fines of up to 50,000 Bahraini dinars per breach.
  • Increase Enforcement Actions: Regulated entities are expected to ensure their compliance programmes meet the latest requirements.
  • Broaden Definitions: Key definitions have been broadened to increase the scope of activity that could potentially fall within the remit of the AML law.

Additional Updates

The proposed updates to the Decree also include:

  • Targeted Financial Sanctions: A general prohibition on implementing targeted financial sanctions imposed by the United Nations Security Council.
  • Corporate Liability Provisions: An extension of corporate liability provisions for money laundering and terrorism financing offences.

Conclusion

The proposed amendments are set to strengthen Bahrain’s position as a leader in financial crime enforcement in the region, and will be closely watched by industry players and regulators alike.