A Royal Decree strengthening Bahrain’s framework for combating money laundering and terrorism financing is set to be debated during the parliamentary session on Tuesday.
The decree – amending provisions of a 2001 law – was issued by His Majesty King Hamad during the National Assembly recess and referred to Parliament for constitutional review.
The amendments introduce sweeping changes across seven articles, including updated legal definitions, expanded investigative powers, stronger confiscation provisions and enhanced international co-operation mechanisms.
Central to the reforms is the formal designation of the National Financial Intelligence Centre as the executing authority, granting it legal powers to receive suspicious transaction reports, conduct financial analysis and co-ordinate with law enforcement bodies.
Under the revised law, authorities may temporarily suspend or delay suspicious financial transactions for up to 72 hours to allow further investigation, including in response to requests from foreign counterpart agencies.
The decree also strengthens asset-tracing powers, enables joint international investigations and reinforces the obligation to implement UN Security Council sanctions related to terrorism and weapons proliferation without delay.
Parliament’s foreign affairs, defence and national security committee, chaired by MP Hassan Bukhammas, endorsed the decree and said the reforms were vital to protect Bahrain from external risks.
“Any delay in updating our legislation could expose the kingdom to serious international consequences, including potential grey-listing,” he said. “This would have direct negative effects on investment flows and the wider economy.”
The committee reviewed feedback from authorities concerned, including the Justice, Islamic Affairs and Endowments Ministry, which confirmed that the decree complies with the Constitution and aligns with Financial Action Task Force (FATF) standards and national risk assessment requirements.
The Interior Ministry also expressed full agreement with the decree as issued.
Among other key changes, the amendments expand the role of the national anti-money laundering committee, strengthen protections for bona fide third parties, and invalidate any legal transactions intended to conceal or evade the confiscation of criminal proceeds.
“The committee unanimously agreed that approving this decree is in the public interest,” Mr Bukhammas said. “It strengthens national security, enhances financial transparency and reinforces Bahrain’s position as a trusted international financial centre.”
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