Financial Crime World

National Bank of Bahrain: Strong Commitment to AML and CTF Compliance

National Bank of Bahrain B.S.C. (NBB), Bahrain’s longest-standing conventional retail bank, reaffirms its commitment to stringent banking compliance regulations set by the Central Bank of Bahrain (CBB). Established in 1957 and publicly traded in the Bahrain Bourse, NBB is recognized for its transparency and adherence to financial industry standards.

Regulatory Compliance in Bahrain

As a condition of its license, NBB adheres to the CBB’s regulations aimed at limiting the vulnerability to financial crime, aligned with Bahrain’s regulatory framework and FATF recommendations. Two critical components of these regulations are:

  • Money Laundering (ML)
  • Terrorist Financing (TF)

NBB’s Robust Compliance Strategies

NBB’s compliance strategies span various departments to safeguard against financial crimes:

  1. An independent Anti-Money Laundering (AML) Department: Responsible for handling the reporting of suspicious transactions to the relevant authorities.

  2. Strict Adherence to Customer Due Diligence (CDD) Rules:

    • Initial screening
    • Ongoing monitoring in line with Basel Committee on Banking Supervision paper.

  3. Transaction Monitoring Mechanism: Identifies and reports any suspicious activities to the CBB.

  4. Enhanced Due Diligence (EDD) for higher-risk customers.

  5. Robust record-keeping and compliance systems: Routine audits and inspections ensure procedural compliance.

Ongoing Training and Controls

NBB prioritizes ongoing training programs for employees to promote awareness of suspicious activities and reporting mechanisms. Strict PEP controls ensure their accounts undergo continuous monitoring.

FATCA Compliance

NBB complies with the US Foreign Account Tax Compliance Act (FATCA). It is listed among the participating Foreign Financial Institutions (FFIs) on the IRS website.

Internal and External Audits

NBB’s commitment to transparency and vigilance is evident through regular, independent internal and external audits. It adheres to CBB guidelines, demonstrating its dedication to the highest standards of transparency, accountability, and compliance.

Adherence to Changing Regulations

As the legislative and regulatory landscape evolves, NBB updates its procedures to ensure continued compliance. With integrity at the core of its products and services, NBB remains a leading financial institution in Bahrain.