Financial Crime World

BAHRAIN TIGHTENS NOOSE ON MONEY LAUNDERING WITH NEW REGULATIONS

Government Introduces Stricter Regulations to Combat Money Laundering and Terrorist Financing

Manama, Bahrain - In a bid to stem the rising tide of money laundering and terrorist financing in the country, the Bahraini government has introduced new regulations that mandate businesses to enhance their due diligence and risk management practices.

Enhanced Due Diligence Requirements

According to a report by KPMG Fakhro, a leading professional services firm in Bahrain, the new regulations require businesses to conduct thorough client onboarding procedures, including:

  • Enhanced due diligence: Conducting a more in-depth review of clients’ identities and source of funds.
  • Identity checks: Verifying clients’ identification documents and information.

Robust Transaction Monitoring Processes

In addition to enhanced due diligence, the report notes that businesses must also implement robust transaction monitoring processes, including:

  • Screening for suspicious transactions: Identifying and reporting unusual or high-risk transactions.
  • Maintaining internal control systems: Ensuring confidentiality of information and protecting against unauthorized access.

Failure to Comply: Significant Administrative Penalties

The report warns that failure to comply with the new regulations can result in significant administrative penalties, up to BD 50,000 (approximately USD 132,000), which can be multiplied by the number of non-compliances.

KPMG Fakhro Offers AML Advisory Services

To help businesses navigate these complex regulations, KPMG Fakhro offers a range of AML advisory services, including:

  • Developing customized policies and procedures manuals: Creating tailored guidance for businesses to ensure compliance.
  • Performing comprehensive gap assessments: Identifying areas where businesses need improvement.
  • Conducting Know Your Customer (KYC) due diligence verifications: Verifying clients’ identities and source of funds.
  • Providing training programs on AML/CFT and sanctions: Educating employees on anti-money laundering regulations.

Get Expert Help from KPMG Fakhro

“KPMG’s team of experts can adopt a structured and flexible approach to meet the needs of your business,” said Jeyapriya Partiban, Partner, Advisory at KPMG Fakhro. “We have extensive experience in implementing robust AML compliance systems that address the unique requirements of each business.”

For more information on KPMG’s AML advisory services, contact Jeyapriya Partiban at +973 1722 2322 or jeyapriyapartiban@kpmg.com.