BD1 Million Fines Approved for Financial Crime

TDT | Manama

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Bahrain has moved to strengthen its financial crime framework, with the Shura Council yesterday approving tougher penalties for violations linked to unlicensed financial activity and misuse of protected banking and insurance terms.

Under the approved decree-law, jail terms and fines of up to BD1 million will be imposed on individuals or entities found in breach of amendments to the Central Bank of Bahrain and Financial Institutions Law.

The changes, introduced through Decree-Law No. 37 of 2025, amend Article 161 of Law No. 64 of 2006 and target violations of Articles 40 and 41.

These provisions prohibit providing regulated financial services without a licence and restrict the use of terms such as “bank” or other designations implying authorised financial operations.

Offenders may face imprisonment, a fine not exceeding BD1 million, or both, unless a harsher penalty applies under other legislation. T

he Shura Council’s Financial and Economic Affairs Committee said the reforms aim to reinforce Bahrain’s defences against evolving financial crimes, including money laundering and terrorist financing, while ensuring alignment with international standards set by the Financial Action Task Force (FATF).

The committee warned that delaying the strengthening of such regulations could expose the Kingdom’s financial sector to reputational and regulatory risks.