BAHRAIN’S FINANCIAL INSTITUTIONS FACE COMPLIANCE ISSUES AS NPC STRUGGLES TO KEEP PACE WITH GLOBAL REGULATIONS
The Anti-Money Laundering and Combating the Financing of Terrorism National Policy Committee (NPC) in Bahrain is facing mounting pressure to keep up with rapidly evolving global regulations, sources close to the committee revealed.
Establishment and Responsibilities
Established in 2001 under Decree Law No. 4, the NPC is tasked with formulating policies and strategies for combating money laundering and implementing international conventions and treaties. The committee is chaired by the Executive Director of Financial Institutions Supervision at the Central Bank of Bahrain.
Challenges and Coordination Issues
Despite being well-established, the committee’s efforts are hindered by a lack of coordination among national authorities, insiders claimed. The committee comprises senior-level representatives from various ministries, including:
- Ministry of Interior
- Foreign Affairs
- Public Prosecution
- Finance
- Justice
Struggling to Keep Pace with International Developments
Sources pointed out that the NPC is struggling to keep pace with international developments, citing the need for updating current regulations in line with global standards. “The committee is trying its best, but it’s an uphill battle,” a senior official said. “We’re working hard to stay ahead of the curve, but it’s a complex issue and we need more resources.”
Meetings and Decision-Making Process
Meetings are held regularly to discuss and vote on various money laundering issues, but insiders claim that decisions often lack consistency due to differing opinions among committee members. The NPC is responsible for issuing guidelines on suspicious transactions reporting, studying international developments, and coordinating with relevant entities to implement applicable conventions or treaties.
Impact on Bahrain’s Reputation
The committee’s efforts come as Bahrain seeks to maintain its reputation as a financial hub in the region. However, critics argue that the country’s lack of transparency and poor regulatory oversight are major concerns.
Conclusion
“Bahrain needs to do more to address these issues,” said a financial expert. “The NPC is trying to play catch-up, but it’s not enough. The country needs to take a more proactive approach to addressing compliance issues.”