Financial Crime World

Title: National Bank of Bahrain’s Commitment to Anti-Money Laundering and Counter-Terrorist Financing Compliance

Overview

The National Bank of Bahrain (NBB), a prominent financial institution in Bahrain, has been maintaining a rigorous stance against financial crime since its inception in 1957. As a public shareholding company listed on the Bahrain Bourse and holding a retail banking license from the Central Bank of Bahrain (CBB), NBB is required to comply with stringent financial crime reporting regulations.

The Need for AML/CTF Compliance

  • The Central Bank of Bahrain (CBB) enforces AML and Counter-Terrorist Financing (CTF) requirements as per international best practices and legislations.
  • NBB’s commitment to preventing financial crime is demonstrated through the implementation of various measures.

Comprehensive Program Against Financial Crime

Independent AML Department

  • Handles all AML-related functions.
  • Reports suspicious transactions to the concerned authorities.

Customer Due Diligence (CDD) Procedures

  • Customer identification during account establishment.
  • Ongoing monitoring.
  • Key aspects of NBB’s customer screening and monitoring procedures:
    • Verifying customer identities and source of funds.
    • Monitoring account transactions.
    • Enhanced due diligence for higher risk customers.
    • Meticulous record-keeping.
    • On-going monitoring of accounts of Politically Exposed Persons (PEPs).

Employee Training and Empowerment

  • Regular training programs to recognize and respond to suspicious transactions.
  • Adequate reporting mechanisms and procedures with complete anonymity.

Compliance with International Regulations

  • Fully compliant with the Foreign Account Tax Compliance Act (FATCA).
  • Included in the first list of participating Foreign Financial Institutions (FFIs) on the IRS website.

Regular Audits

  • Internal and external audits for ongoing adherence to AML and CTF regulations.
  • Maintains a strong compliance culture and proactively addresses potential vulnerabilities.

Ongoing Evolution

  • Regularly reviews and updates operating procedures to incorporate the impact of any regulatory changes or guidelines.

Conclusion

The National Bank of Bahrain’s commitment to remaining vigilant against financial crime reflects its unwavering dedication to maintaining the integrity and trust of its customers and stakeholders.