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Bahrain is taking a decisive step to strengthen its defences against money laundering and terrorism financing as the Shura Council is set to approve amendments to the anti-financial crime legislation on Sunday.
The council’s foreign affairs, defence and national security committee has recommended approval of the decree-law No 36 of 2025, which amends key provisions of a 2001 decree-law on combating money laundering and terrorism financing, citing urgent national and international obligations.
Committee chairman Dr Ali Al Rumaihi said the amendments were essential to safeguarding Bahrain’s financial system and maintaining international confidence.
“These legislative updates are a strategic necessity to protect the kingdom’s financial and economic stability, enhance our ability to combat evolving financial crimes and meet international standards,” Dr Al Rumaihi said.
According to the committee’s report, the decree-law was issued to ensure Bahrain keeps pace with rapidly evolving money laundering and terrorism financing methods, including the financing of weapons proliferation.
The changes also aim to align Bahrain’s laws with the standards of the Financial Action Task Force (FATF) ahead of the kingdom’s next mutual evaluation, scheduled for March 2026.
Failure to adopt the amendments promptly, the report warned, could expose Bahrain to being placed on the FATF’s ‘grey list’, a move that would label the kingdom as a high-risk jurisdiction and trigger severe consequences for its financial sector.
“Any delay would pose serious risks to Bahrain’s international standing and could negatively affect investment flows and correspondent banking relationships,” Dr Al Rumaihi said.
Mr Al Rumaihi
The decree-law significantly strengthens the role of the National Financial Intelligence Centre – designated as the ‘implementing unit’ – by granting it broader powers to analyse suspicious transactions, co-ordinate nationally and internationally, and temporarily suspend or delay suspicious financial operations while investigations are completed.
“These powers allow authorities to intervene early, prevent the dissipation of illicit funds and dismantle criminal networks more effectively,” Dr Al Rumaihi noted.
The amendments also expand the scope of money laundering offences, tighten confiscation rules to include proceeds and tools of crime and modernise legal definitions to reflect real-world enforcement challenges.
A major update involves revising the law’s accompanying schedule to include newly emerging high-risk activities, notably virtual asset service providers.
“The inclusion of virtual asset activities reflects the reality of modern financial crime and ensures no sector falls outside regulatory oversight,” said Dr Al Rumaihi.
The decree-law also restructures and renames the national committee responsible for combating money laundering and terrorism financing, aligning its mandate with the National Risk Assessment (NRA) and the kingdom’s broader national strategy.
Amendments to the law further enhance international co-operation, enabling deeper information sharing, joint financial analysis and asset recovery with foreign counterparts, while maintaining strict confidentiality safeguards.
The committee has unanimously recommended approval of the decree-law, clearing the way for debate and a final vote by the Shura Council.
“If endorsed, the amendments will significantly reinforce Bahrain’s anti-money laundering and counter-terrorism financing regime, bolstering the kingdom’s reputation as a secure and credible financial hub,” said Dr Al Rumaihi.
mohammed@gdnmedia.bh
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