Tougher Law Against Financial Crimes Set to Win Shura Backing in Bahrain

Bahrain is taking a decisive step to strengthen its defences against money laundering and terrorism financing, with the Shura Council expected to approve key amendments to anti-financial crime legislation on Sunday.

The council’s foreign affairs, defence and national security committee has recommended approval of Decree-Law No. 36 of 2025, which introduces amendments to a 2001 decree-law governing the fight against money laundering and the financing of terrorism. The recommendation comes in light of what the committee described as urgent national priorities and binding international obligations.

Committee chairman Dr Ali Al Rumaihi said the proposed amendments are vital to safeguarding Bahrain’s financial system and maintaining international confidence in the kingdom’s economic framework.

“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 introduced to ensure Bahrain keeps pace with rapidly changing methods of money laundering and terrorism financing, including activities linked to the financing of weapons proliferation. The amendments are also designed to strengthen oversight, enforcement mechanisms, and coordination between relevant authorities.

A key driver behind the changes is Bahrain’s commitment to align its legal framework with the standards set by the Financial Action Task Force (FATF), ahead of the kingdom’s next mutual evaluation scheduled for March 2026.

The committee warned that any delay in adopting the amendments could expose Bahrain to the risk of being placed on the FATF’s so-called “grey list”, which identifies jurisdictions under increased monitoring. Such a designation could have serious repercussions for the country’s 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 cautioned.

The proposed amendments underscore Bahrain’s broader effort to reinforce its reputation as a secure and compliant financial hub, while protecting its economy from the growing threat of complex financial crimes.