A new set of administrative violations and fines governing the collection, receipt and transfer of funds for public purposes have been introduced by the Social Development Ministry, as part of tighter controls over fundraising activities in Bahrain.
The new rules also cover unlicensed collections, reporting failures and overseas transfers. The aim is to reinforce accountability over money collected for public-benefit causes, with penalties ranging from BD100 to BD10,000, depending on the nature of the violation.
Among the violations covered are failure to submit fundraising reports within the specified deadlines and in the approved format, as well as failure to submit reports concerning funds received without a licence in accordance with the prescribed financial procedures.
The regulations also address cases where organisations, or individuals, fail to notify the Social Development Ministry within the required period after receiving funds without the necessary licence.
Other violations include failure to comply with the administrative requirements and controls governing fundraising activities, including requirements relating to financial records and supporting documentation.
The decision further covers failures to maintain registers, financial documents and other records relating to fundraising, or failure to produce such documents when requested through the approved procedures.
Under the schedule, the following violations are subject to administrative fines:
- Collecting funds through methods other than those specified in the approved forms or templates – a fine ranging from BD100 to BD10,000.
- Spending collected funds for a purpose other than that for which they were raised, or using them in ways other than those approved – a fine ranging from BD100 to BD10,000.
- Failure to submit a fundraising report using the approved financial template within the specified period – a fine ranging from BD100 to BD10,000.
- Failure to submit a report on sending or receiving funds to or from outside Bahrain, or the required supporting documents, within the specified period – a fine ranging from BD100 to BD10,000.
- Failure to submit a report on receiving funds without a licence using the approved financial template within the specified period – a fine ranging from BD100 to BD10,000.
- Failure to notify the Social Development Ministry about receiving funds without a licence within the specified period – a fine ranging from BD100 to BD10,000.
- Exceeding the administrative expenses limit stipulated in the Executive Regulations of Decree-Law No (21) of 2013 concerning the regulation of fundraising for public purposes – a fine ranging from BD100 to BD10,000.
- Violating the terms and conditions contained in approved forms and templates, or decisions issued to implement Decree-Law No (21) of 2013 concerning the regulation of fundraising for public purposes – a fine ranging from BD100 to BD10,000.
- Failure to maintain records, financial documents or other documents related to fundraising, or failure to submit them according to the approved forms – a fine ranging from BD100 to BD3,000.
The regulations place particular emphasis on ensuring that funds raised for a specific public purpose are actually spent on that purpose.
Using donations for an unapproved purpose is now expressly listed among the violations carrying a fine of up to BD10,000.
The same maximum penalty applies where funds are collected through methods that differ from those authorised in the approved fundraising forms or templates.
The measures were issued by Social Development Minister Osama Al Alawi and published in a special edition of the Official Gazette, updating the regulatory framework governing fundraising for public purposes and the procedures for obtaining the necessary licences.
The new provisions place particular emphasis on accountability, financial reporting, record-keeping and the proper authorisation of funds received from or transferred to parties outside Bahrain.
Under the ministerial decision, a schedule of violations subject to administrative fines has been approved in accordance with the provisions of the law regulating fundraising for public purposes.
The ministry’s measures are based on the legislation regulating fundraising for public purposes, including the provisions governing the collection, receipt, use and transfer of donated funds.
The new framework also reinforces controls over funds involving foreign countries. The regulations define procedures for applications involving the transfer of funds abroad, as well as applications to receive funds from outside Bahrain.
Such applications must undergo verification to ensure that the required information and supporting documents have been submitted and that the relevant legal conditions have been met.
The framework requires the competent office to maintain a register of fundraising licence applications, recording details including the application number, date of receipt, Gregorian year and the funds or fundraising activity for which approval is sought. Applications and related correspondence are also to be processed through the prescribed administrative procedures, with co-ordination between the relevant government departments where necessary.
The regulations are aimed at ensuring that funds collected for public purposes are used for their approved objectives and in accordance with the law and its implementing regulations.
The ministerial decisions also establish and regulate the work of an office responsible for handling applications for licences to collect funds for public purposes.
The office is tasked with receiving fundraising licence applications and related requests, checking the required information and documentation, maintaining the official register and co-ordinating with the relevant authorities.
Its responsibilities include ensuring that applications are processed according to the approved organisational and administrative procedures and that the necessary approvals are obtained before fundraising activities begin.
The office will also maintain the numerical sequence of licence applications, together with their dates of receipt and other relevant information, providing an official record of authorised fundraising activities.
The regulations provide for co-ordination with government departments to monitor fundraising activities and ensure compliance with the legal controls governing the collection and use of funds.
The measures reinforce the principle that fundraising for public purposes cannot be conducted outside the licensing system. They also provide a regulatory framework for receiving funds from abroad and transferring funds outside Bahrain, subject to the required approvals and conditions. This includes checking applications, verifying supporting documents and referring applications to the competent authorities where required.
The measures are intended to strengthen oversight of fundraising operations while ensuring that money collected in the name of public-benefit causes is directed towards legitimate and approved purposes.
The decisions form part of the wider regulatory framework established under Bahrain’s legislation governing fundraising for public purposes and its implementing regulations.
The ministerial decisions state that the provisions will take effect from the day following their publication in the Official Gazette, while any provision contradicting the new decisions is to be superseded to the extent of that contradiction.
The ministry issued last week an official notice giving inactive civil society organisations a two-week deadline to regularise their legal status.
mohammed@gdnmedia.bh
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