The Central Bank of Bahrain views the fight against money laundering (‘AML’) and combating the financing of terrorism (‘CFT’) as a key priority. Bahrain is part of the Financial Action Task Force (‘FATF’) through the full membership of the Gulf Cooperation Council in the FATF, and is committed to the implementation of all international standards in this area. Bahrain is also a founding member of the regional MENA-FATF, and hosts its secretariat.
In order to ensure effective compliance with relevant standards and to preserve Bahrain’s strong reputation as a well-regulated financial centre, the CBB maintains a Compliance Directorate, which is tasked with leading the CBB’s AML/CFT efforts.
Exchange of Financial Information
In an effort to enhance tax transparency and combat cross-border tax evasion, the Kingdom of Bahrain has committed to the automatic exchange of financial information for tax matters (“AEOI”). This commitment can be seen through the Kingdom’s participation in the exchange of information through the Organization for Economic Cooperation and Development’s (“OECD”) Common Reporting Standard (“CRS”), and the United States Foreign Account Tax Compliance Acts (“FATCA”).