NEARLY 90 per cent of Bahrain’s jewellers have complied with a government directive to fight money laundering and terrorism financing, it has emerged.
That is the equivalent of almost 900 firms, said Industry, Commerce and Tourism Ministry assistant under-secretary for commercial registration and companies Ali Makki.
All jewellers are required to develop Anti-Money Laundering (AML) frameworks, based on an order issued in 2017 and updated last year.
“This requires AML policies and procedures, a compliance function led by a compliance officer, Know Your Customer (KYC) processes, the identification and reporting of suspicious transactions and regular reporting to the ministry,” he said during a seminar at Downtown Rotana yesterday.
He said the initiative was based on concerns that jewellers could be used by money launderers.
“As dealers in high value goods, various parts of the jewellery supply chain may be targeted during the process of laundering money, therefore businesses need to ensure compliance with the strict systems we have in place,” he added.
Held under the patronage of Industry, Commerce and Tourism Minister Zayed Alzayani, the event was opened by Under-Secretary of Commerce Affairs Nader Almoayyed.
It was initiated by Bahraini professional services firm Keypoint, with support from the ministry as Bahrain hosts the Middle East and North Africa Financial Action Task Force (MENAFATF).
Priorities
The firm’s managing director, Wajdi Al Jallad, said the event aimed to help jewellers understand their rights and responsibilities in the fight against money laundering and the financing of terrorism.
“Anti-money laundering and combating the financing of terrorism (AML/CFT) are key priorities for the government, for the ministry – and for the country as a whole,” he said.
Mr Al Jallad warned that non-compliance could lead to significant sanctions and penalties.
“AML policies and procedures are designed to prevent and detect transactions using funds from illegal sources,” he said. “We all have an important role to play in this ongoing struggle.”
Mr Makki said it was not just banks and financial institutions used for money laundering.
“Bahrain non-financial businesses and professions (DNFBPs) – including jewellers – are required to develop and maintain appropriate frameworks to monitor AML risk,” he added.
In September, the MENAFATF said that while Bahrain had the foundation for an effective regime to combat money laundering and terrorist financing, it needed to further develop measures based on risk.
During 2012-2017, Bahrain initiated 43 investigations for money laundering, resulting in nine convictions, and a number of ongoing cases, the report said.
A national risk assessment process on AML/CFT is on-going, said ministry chief of anti-money laundering Ebrahim Awachi.
avinash@gdn.com.bh
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