White Collar Crime & Investigations
Anti-Money Laundering and Combatting the Financing of Terrorism (“AML/CFT”) laws and regulations in the Kingdom of Bahrain are designed to help the country combat money laundering and the financing of terrorism. The main AML/CFT legislation is as follows:
Decree-Law No. (4) of 2001, with respect to the Prevention and Prohibition of the Laundering of Money as amended by Decree-Law No. (29) of 2020.
AML laws in Bahrain apply to both financial institutions and designated non-financial businesses and professions (DNFBPs) that operate within the Kingdom of Bahrain.
Both individuals and companies are capable of being punished under the AML/CFT regulations governing anti-money laundering (AML), including fines, imprisonment, revocation of licenses, and reputational damage. These consequences are designed to prevent individuals and entities from engaging in money laundering or and/or the financing of terrorism activities.
Article 3 from the Bahrain Anti Money Laundering Law states that Individuals involved in money laundering offenses in Bahrain may face imprisonment for up to seven years and a fine of up to BD 1,000,000. In addition, when a corporate entity commits money laundering, it will be subject to a fine as per the law and will also face the confiscation of the assets involved in the offense, in addition to any liability of individuals associated with the corporation.
Bahraini businesses that violate money laundering regulations may encounter severe repercussions. These consequences involve the possibility of criminal sanctions, such as imprisonment and financial penalties for the company's executives or managers. Additionally, the authorities have the authority to confiscate assets obtained through illegal methods, impose regulatory penalties, revoke licenses, and harm the company's reputation.
In Bahrain, there is not a single comprehensive law governing bribery and corruption; instead, there are laws and regulations work together to address these issues.
The primary legislation concerning bribery and corruption is the Law No (15) of 1976, Promulgating the Penal Code (as amended in 2023)
The Bahraini Penal Code does not provide a precise definition of a bribe. Instead, it characterises bribery offenses as the act of offering a gift or any form of favour, whether directly or indirectly, with the intention of encouraging or rewarding whoever breaches their duties.
Articles 186 to193 of the Bahraini Penal Code state that engaging in bribery can lead to severe legal consequences, including imprisonment for a maximum of ten years and a fine equivalent to the amount of the bribe, but not less than BHD 500 and not more than BHD 10,000.
Yes, under Article 417,418, and 419 of Bahraini Penal Code, legal entities, private individuals, public employees, and any person who facilitate or abets a bribery offence can be prosecuted for bribery offences.
