THE KINGDOM OF BAHRAIN’S NATIONAL RISK ASSESSMENT 2025

25 significantly to the efforts in mitigating fraud. It is in light of these factors that Fraud is deemed to pose a medium-high threat to Money Laundering. Case Study No. 2 – Investment Fraud In 2024, the FINC successfully disrupted an investment fraud operation led by Suspect A, purporting to be a legitimate investment company. Suspect A targeted individuals by offering opportunities to invest in sports memorabilia and other rare collectibles. Victims would invest in the high-value collectibles as they were promised substantial returns. Suspect A maintained custody of the items, explaining that several investors held stakes in the same items, due to their high value and the risk of damage. CASE SPECIFICS: Suspect A, in association with Suspect B, who acted as a collecting agent, convinced victims to invest initial amounts in his business. After visiting the company’s premises in a prominent area and observing its professional layout, the victims felt confident that it was legitimate. Over the following months, the suspect paid monthly returns in addition to the initial invested amounts, also providing access to a website developed by Suspect C, which showcases the items the victims were supposedly investing in, with their values, reflecting a continuous increase. Encouraged by these returns, the victims invested additional amounts. Suspect A was enabled to accumulate an estimated total of 4 million BHD. Subsequently, Suspect A failed to make the promised payments. When confronted, he delayed and, in some cases, provided what he claimed were rare items as a gesture for their assurance. Following the incidents, the victims filed official complaints. FINC analysts performed a detailed operational financial analysis and established that to conceal his criminal activities, Suspect A employed Suspect D as a third-party launderer, facilitator, and advisor. Suspect D sought to legitimize the operation by incorporating certain assets into transactions, thereby creating the appearance of a lawful purpose for executing the contracts and receiving the funds. This arrangement enabled the laundering of an estimated 1,843,189 BHD through transfers to personal account and a corporate entity in which Suspect A was involved in, as well as salary and rental payments and the purchase of luxury vehicles. However, the profits and amounts stated were inconsistent with the terms of the executed contracts. OUTCOMES: Following a successful prosecution, all suspects are to be deported upon completion of their sentences, which varied in length and fines. Suspect A: sentenced to 8 years of imprisonment and fined 100,000 BHD Confiscated amount of 3,371,250 BHD ordered by the court to be returned to the rightful owner Suspect B: sentenced to 1 year of imprisonment and fined 5,000 BHD Suspect C: sentenced to 1 year of imprisonment Suspect D: sentenced to 5 years of imprisonment and fined 100,000 BHD The Company: was fined 100,000 BHD