Home/Resources/AML Guide

Anti-Money Laundering

AML/CFT compliance obligations for businesses operating in Bahrain.

Framework

Bahrain's AML Framework

Bahrain's AML/CFT regime operates under Decree Law No. 4 of 2001 (as amended) and is supervised by the Central Bank of Bahrain (CBB). Bahrain is a member of the Middle East & North Africa Financial Action Task Force (MENAFATF) and follows FATF recommendations.

🔍

CDD / KYC

Customer due diligence at onboarding and ongoing monitoring

🚨

STR Filing

Suspicious Transaction Reports to Financial Intelligence Unit

📋

Record Keeping

Retain transaction records and CDD docs for 5+ years

KYC

Know Your Customer Requirements

👤 Individual Customers

  • Government-issued photo ID (passport, CPR)
  • Proof of address (utility bill, bank statement — max 3 months old)
  • Source of funds documentation
  • Screening against sanctions lists (UN, EU, OFAC, local)
  • PEP (Politically Exposed Person) screening

🏢 Corporate Customers

  • Commercial registration (CR) certificate
  • Memorandum and articles of association
  • Board resolution authorizing account/relationship
  • Ultimate Beneficial Owner (UBO) identification (25%+ threshold)
  • ID documents for all directors and authorized signatories
  • Audited financial statements (for higher-risk relationships)

⚡ Enhanced Due Diligence (EDD)

Required for high-risk customers including PEPs, correspondent banking relationships, non-face-to-face onboarding, and clients from high-risk jurisdictions (FATF grey/black list).

Consequences

Non-Compliance Penalties

BHD 1M+

Financial Penalties

Fines for systematic AML failures can exceed BHD 1 million

Criminal

Personal Liability

Compliance officers face personal criminal liability for failures

Revocation

License Loss

Severe cases result in license revocation and business closure

AML Compliance Support

We help financial institutions and DNFBPs design and maintain robust AML programs.

Get AML Advisory →