Plans are underway to strengthen oversight of social and charity associations, a minister said, as the Shura Council unanimously approved amendments to Bahrain’s fundraising law in its final session yesterday.
The changes introduce stricter supervision, mandatory reporting and fines of up to BD10,000 to curb money-laundering and terrorism-financing risks ahead of a key international evaluation.
Social development minister Osama Al Alawi said the ministry’s plan focuses on preventive control and risk evaluation while easing procedures for compliant charities.
“One of the most important updates this year is a package of procedural facilitations to simplify administrative steps for associations,” he said. “The time to obtain electronic donation licences has been reduced to seven working days.”
He added that the period for evaluating financial reports has been extended from 15 to 30 days, giving associations more time to complete requirements.
Administrative fines and risk-based supervision have been introduced as more effective compliance tools.
“The fines system will reduce repeated referrals to the courts for minor violations that do not warrant severe penalties, improving regulatory efficiency,” he said.
The decree-law was reviewed by the council’s services committee, with rapporteur Dr Fatima Al Kooheji explaining during the session that the amendments respond to evolving global methods of financial crime and align Bahrain with standards set by the Financial Action Task Force and the kingdom’s National Risk Assessment.
Shura member Dr Ali Al Haddad described the decree-law as ‘a national legislative step, not a routine amendment’.
“Countries that seek to protect their financial sectors rely on robust laws, effective oversight and transparent governance,” he said. “This decree strengthens the legal framework governing public fundraising and closes any gaps that could harm national interests or Bahrain’s financial reputation.”
He stressed that charitable work, despite its noble purpose, can be vulnerable to misuse, making enhanced transparency and oversight a legislative responsibility.
“This law moves from traditional control to risk-based supervision, directing oversight towards higher-risk activities while maintaining balance with the continuity of charitable work,” he said.
First Vice Chairman Jamal Fakhro urged authorities to apply the law with understanding.
“Some associations fear pressure on social and charitable work. We hope implementation will preserve Bahrain’s spirit of social solidarity while helping societies improve their performance and direct funds properly,” he said.
Legislative and legal affairs committee vice-chairman Dr Shaikh Adel Al Maawda said Bahrain enjoys an excellent reputation in charitable work locally and abroad and the ministry’s role should also include developing and supporting charities, not only monitoring them.
Member Ali Al Aradi said the decree reinforces Bahrain’s compliance culture.
“Charitable work must operate within a clear legal framework so funds are not diverted for unlawful purposes,” he said, adding that the ministry’s approach encourages genuine charity while closing doors to abuse.
Under the amendments, legal entities must obtain prior ministerial approval before launching fundraising campaigns. Individuals are restricted to religious fundraising, and anyone collecting donations without a licence must notify the ministry within seven working days. The ministry must respond within 30 days, with silence now deemed a rejection.
Licensed organisers must submit detailed financial reports within 30 days of completing a campaign, with annual reporting required for longer drives. A new clause empowers the ministry to assess each association’s exposure to terrorism-financing risks using a national risk matrix.
The most debated provision mandates court-ordered confiscation of unlicensed funds – or an equivalent amount if already spent – to be redirected to charitable causes designated by the ministry.
The decree-law has already been unanimously approved by MPs and now completes its legislative passage with Shura endorsement.
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