Financial Crime World

National Bank of Bahrain: Leading the Charge in Anti-Money Laundering Compliance

The National Bank of Bahrain (NBB), a pioneering conventional retail bank in the Kingdom of Bahrain established in 1957, is committed to combating financial crime. As a licensee of the Central Bank of Bahrain (CBB), the bank is subject to stringent regulations and supervision intended to prevent money laundering and terrorist financing.

Adhering to Anti-Money Laundering Regulations

NBB’s commitment to abiding by relevant laws and regulations includes full compliance with the Financial Crime Module of the CBB. This compliance adheres to guidelines set by the Basel Committee on Banking Supervision and the Financial Action Task Force (FATF). These rules necessitate:

  1. Customer Due Diligence (CDD) processes, as detailed in the Basel Committee on Banking Supervision paper and FATF 40 recommendations.
  2. Reporting of suspicious transactions to the relevant authorities.

Dedicated Anti-Money Laundering Department

A dedicated Anti-Money Laundering (AML) Department is responsible for the implementation and enforcement of these regulations at NBB. The department is headed by experienced professionals, managing the reporting of suspicious transactions to the relevant authorities.

Robust Know Your Customer Procedures

NBB’s efforts to ensure adherence to regulations include stringent Know Your Customer (KYC) procedures:

  1. Establishing identity and screening for potential risks: The bank verifies a customer’s identity and screens their background for any potential risks before establishing a business relationship.
  2. Ongoing transaction monitoring: The bank maintains a clear understanding of customer transactions through ongoing monitoring.
  3. Enhanced due diligence for high-risk customers: The bank implements additional measures for customers deemed high-risk, enhancing the due diligence process.
  4. Compliance with regulatory and auditing requirements: NBB adheres to all relevant regulatory and auditing requirements.

Monitoring of Politically Exposed Persons

NBB has procedures in place for monitoring accounts associated with Politically Exposed Persons (PEPs). Regular employee training programs aim to increase awareness of suspicious activities and reporting mechanisms among staff.

FATCA Compliance

In line with the Foreign Account Tax Compliance Act (FATCA), NBB adheres to the necessary regulations and is included in the list of participating Foreign Financial Institutions (FFIs) on the IRS website.

Independent Audits and Updates

NBB’s unwavering commitment to combating financial crimes is further illustrated by its commitment to regular, independent internal and external audits. These evaluations help the bank remain in compliance with its anti-money laundering and counter-terrorist financing rules, ensuring its procedures are up-to-date and effective.

Ongoing Efforts to Adapt

The National Bank of Bahrain is dedicated to staying at the forefront of anti-money laundering efforts, constantly reviewing and updating its procedures to adapt to changing legislation and guidelines. The bank also takes measures to protect employees from potential repercussions when reporting suspicious activities.