Shura Council set to discuss updates to Bahrain’s anti-money laundering legislation

TDT | Manama

Email: mail@newsofbahrain.com

The Shura Council will debate Decree-Law No. 36 of 2025 on Sunday, which updates Bahrain’s 2001 anti-money laundering and terrorist financing law.

Government legal advisers have warned that any delays in passing the law could draw scrutiny from the FATF, potentially placing Bahrain on its ‘grey list’ ahead of March 2026.

The Legislation and Legal Opinion Commission said the changes are meant to keep pace with newer methods used in money laundering, terrorist financing and the financing of weapons proliferation.

Package

It linked the package to the Financial Action Task Force’s standards and to findings from Bahrain’s National Risk Assessment.

In its memorandum, the commission said the amendments address international duties that Bahrain will be judged against in the next periodic review.

It said delay could harm the Kingdom’s reputation and its financial and economic standing, and raise the risk that other countries treat dealings with Bahraini financial bodies as high-risk, with stricter checks and added hurdles for cross-border business.

Coordination

The commission also cited a need to strengthen the committee responsible for combating money laundering and terrorist financing, widening its remit to improve coordination inside Bahrain and with partners abroad, and tying its work to risk assessment and national planning.

It said the decree-law would also give the implementing unit more room to act, including the power to stop or delay suspicious transactions for a set period while enquiries continue, either on its own initiative or in response to requests from foreign counterparts.

The memorandum referred to deeper cooperation on information sharing and joint financial analysis, and stronger parallel financial enquiries aimed at tracing unlawful proceeds and identifying criminal networks.

Schedule

Another change is an update to the schedule attached to the 2001 law to cover newer activities and sectors seen as exposed to money laundering and terrorist financing risks, including work by virtual asset service providers.

The Shura Council’s Foreign Affairs, Defence and National Security Committee has recommended approval.

The committee noted the decree-law contains seven articles, replacing and adding definitions and rewriting provisions across several parts of the 2001 law.

Strategy

It also replaces the attached schedule and swaps the name of the committee concerned with money laundering and terrorist financing, while outlining updated tasks linked to the National Risk Assessment and the national strategy.

It said the text deals with gaps shown in practice, including updated definitions for the implementing unit and proceeds of crime, an expanded scope for money laundering offences, and tougher confiscation rules that cover proceeds and the means used, while protecting the rights of third parties acting in good faith.

The committee said the decree-law strengthens the Financial Intelligence National Centre (FINC) as the implementing body by adding a new provision giving it wider powers in financial enquiry, analysis and coordination.

Transactions

That includes seeking a pause or delay of suspicious transactions to prevent illicit proceeds being moved or dissipated.

It also pointed to changes meant to strengthen cooperation and information exchange with counterpart units abroad, including joint analysis, asset tracing and recovery, while keeping information confidential and limiting its use to lawful purposes.