Bahrain has taken a decisive step to reinforce its financial and national security framework, with the Shura Council unanimously approving sweeping amendments to the kingdom’s anti-money laundering and counter-terrorism financing legislation.
The Shura Council yesterday endorsed Decree-Law No (36) of 2025, which amends key provisions of Decree-Law No (4) of 2001 on prohibiting and combating money laundering and terrorism financing.
The decree will now be referred to Parliament Speaker Ahmed Al Musallam who will formally notify the government.
The amendments were recommended by the Shura Council’s foreign affairs, defence and national security committee, which stressed the need to keep pace with increasingly sophisticated financial crime methods and meet international obligations.
Committee rapporteur Dr Bassam AlBinmohammed said the decree-law was essential to respond swiftly to evolving techniques used in money laundering, terrorism financing and the financing of weapons proliferation.
“The amendments embody fundamental international commitments that Bahrain will be assessed against in the upcoming periodic review,” he said, noting their alignment with standards issued by the Financial Action Task Force (FATF).
He explained that the changes address shortcomings revealed through practical application of the existing law by updating key definitions, expanding the scope of money laundering offences and strengthening confiscation provisions to include criminal proceeds and the tools used to commit such crimes, while safeguarding the rights of bona fide third parties.
The decree-law also updates the law’s accompanying schedule to include newly emerging activities and sectors, notably virtual asset service providers.
A major pillar of the reform is the enhanced role of the National Financial Intelligence Centre, designated as the implementing unit. A new article grants it broader powers to conduct financial analysis, co-ordinate domestically and internationally, and request the suspension or delay of suspicious transactions.
Justice, Islamic Affairs and Endowments Minister Nawaf Al Maawada underlined the government’s commitment to the highest global standards in monitoring financial flows.
“Any establishment that deals with money movement – including those using artificial intelligence – will be subject to oversight, not because of AI itself, but because of how funds are managed,” he said.
The minister highlighted that cash transactions exceeding BD3,000 are already restricted in sectors such as gold trading, and said the Central Bank of Bahrain (CBB) would issue detailed regulations to support implementation of the law.
Interior Ministry officials told the council that the legislation had undergone multiple amendments in recent years, including four changes since 2020, as part of Bahrain’s preparations for the next FATF mutual evaluation scheduled for 2026.
“Bahrain has already passed three reviews, and the upcoming evaluation will assess 187 countries,” an Interior Ministry representative said. “A national strategy to combat money laundering and the financing of terrorism and arms proliferation has been launched, supported by a policy committee that includes the CBB.”
A ministry legal consultant added that over the past two years, all relevant government legislation covering various economic activities had been comprehensively reviewed to close any regulatory gaps.
During the debate, Shura Council members highlighted the importance of adapting to new risks, including digital assets and cross-border financial transfers.
Several members praised the role of the National Financial Intelligence Centre, staffed by highly trained professionals, in safeguarding Bahrain’s financial reputation.
“The unanimous approval reflects broad consensus that the strengthened legal framework is vital to protecting the kingdom’s economy, preserving investor confidence and ensuring Bahrain remains clear of international watchlists,” said foreign affairs, defence and national security committee chairman Dr Ali Al Rumaihi.
mohammed@gdnmedia.bh
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