Stronger safeguards move forward as Shura reviews key financial law amendment

TDT | Manama

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Efforts to protect Bahrain’s financial system advanced as the Shura Council’s Legislative and Legal Affairs Committee reviewed the constitutional and legal aspects of a decree law amending provisions of the Central Bank of Bahrain and Financial Institutions Law.

Chaired by lawyer Dalal Jassim Al Zayed, the committee examined the amendment's structure and the reasons for its urgent issuance, focusing on the need to keep pace with evolving financial risks.

Urgency

At the core objective is strengthening the Kingdom’s ability to respond to modern methods of money laundering and terrorist financing. The committee noted that rapid developments in these areas require alignment with international standards set by the Financial Action Task Force and national risk assessment requirements.

Delays, it was highlighted, could expose Bahrain to serious consequences, including the risk of being placed on the grey list, which could affect the financial sector’s standing and reduce investor confidence.

Deterrence

The decree law introduces stricter penalties for violations related to virtual asset service providers, reinforcing both prevention and accountability. The aim is to ensure that penalties reflect the scale of offences and their potential impact on the financial system, while remaining aligned with global standards.

Next

Following its review, the committee concluded that the decree law is constitutionally and legally sound, referring it to the Financial and Economic Affairs Committee for further study.

In a system where confidence is key, such steps signal a continued commitment to safeguarding stability and maintaining trust in Bahrain’s financial landscape.