All businesses must establish a dedicated local bank account and offer at least one electronic payment option by June 13, 2025, under a decisive move aimed at enhancing financial transparency and modernising commercial transactions.
This directive, stemming from Resolution No. (43) of 2024, aims to streamline financial activities, bolster trust, and foster economic growth across the kingdom’s commercial sector.
Director of registration Bader Fareed Al Saad, during a media briefing yesterday, elaborated on the new requirements.
“The resolution mandates all commercial entities operating in Bahrain, with the exception of limited partnership companies, to open and maintain a single bank account with a licensed Bahraini bank,” he said.
“This account,” the official further explained, “will serve as the central conduit for all business-related financial activities, encompassing cash transactions, bank transfers, and electronic payments. Furthermore, the regulation explicitly requires these entities to provide customers with accessible electronic payment options.”
This comprehensive regulation applies broadly to all businesses registered under Bahrain’s Commercial Registry Law No. 27 of 2015, as amended. This includes individual establishments, various commercial companies (excluding limited partnerships), and branches of foreign companies operating within Bahrain.
Mr Al Saad underscored that “this initiative is a significant step towards fostering greater transparency and efficiency in financial transactions across the commercial sector.”
By mandating dedicated bank accounts, the regulation aims to provide a clear and auditable trail for all financial flows, a crucial measure in combating money laundering and ensuring the integrity of financial data.
“The requirement for electronic payment options not only offers increased convenience and choice for consumers but also further facilitates the seamless tracking of funds, contributing to a more secure and accountable financial ecosystem.”
To ensure a smooth transition and widespread compliance, the ministry has emphasised its commitment to guiding business owners through the process of opening commercial bank accounts.
As a testament to this support, four banks have already been shortlisted to assist businesses in fulfilling this requirement, with plans to expand this list in the near future, offering a wider selection of banking partners.
The ministry has also integrated these new financial compliance measures into the commercial registration renewal process. The existing system will undergo a thorough review to identify entities that have not yet adhered to the updated regulations.
“Non-compliance with these requirements could lead to serious repercussions, including the potential suspension of a business’s commercial registration, directly impacting their ability to conduct legal transactions,” Mr Al Saad warned.
This interconnectedness underscores the reliance of linked entities and banks on a compliant system for efficient account management and registration renewals.
With the order set to come into effect on June 13, 2025, one year after its publication in the Official Gazette, the official urged businesses to take immediate steps to implement the necessary changes.
“This proactive approach will not only ensure compliance but also contribute to a more transparent, efficient, and secure financial environment that ultimately benefits both businesses and the national economy of Bahrain.”
avinash@gdnmedia.bh
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