THE KINGDOM OF BAHRAIN’S NATIONAL RISK ASSESSMENT 2025

27 the analysis conducted by FINC analysts and the confessions of Suspect A and Suspect B, was compiled into a detailed case file. This case file was subsequently submitted to the Public Prosecution's Office (PPO) for prosecution. ➢ Suspect A and Suspect B were sentenced to a 3-year prison sentence and a fine of 100,000 BHD. ➢ The company was sentenced to fine of 100,000 BHD. ➢ A total of 7 million BHD was seized from the Suspects and the company’s assets. The successful dismantling of this network represents a significant achievement for FINC. Such underground networks facilitate illicit financial flows and pose a significant threat to the integrity of the Kingdom's financial system. This case demonstrates FINC's ability to identify, analyse, and dismantle complex financial crime networks through accurate analysis of suspicious activity and effective international cooperation. Sectoral Threat Assessment 93. This section of the report reflects the ratings and assessments of the domestic ML threats per sector/subsector. The ratings were given based on the size of each sector/subsector, the number of STRs reported, the total detected amounts of proceeds in each case, and the number of STRs for each sector that has been violated from the total number of STRs reported. Subsequently, a sectoral analysis is provided to illustrate the given findings of ML acts and the abuse of sectors. By analysing this data, an overall evaluation of the domestic money laundering threats for each sector can be made. 94. Subsectors like Money Changers, financing companies, ancillary services and VASPs. In most cases, money service businesses were the second target for money laundering attempts. Criminals, primarily non-Bahraini individuals, often use these businesses to send illicit funds to their associates abroad. These threats and vulnerabilities will be elaborated on and expanded in the sectoral analysis below. 95. The number of STRs is growing annually for both financial institutions and DNFBPs. Quantity and quality are both significant factors in STR reporting. The quality of STRs has also increased due to ongoing communication, outreach, and discussions with the reporting entities. 96. Financial Institutions were abused by drug traffickers, with the banking sector being abused for committed ML acts, followed by money service businesses and virtual assets as sectors abused for ML by drug trafficking offenders. International Money Laundering Threat 97. The Economic Vision 2030 launched in 2008 by His Majesty King Hamad bin Isa Al Khalifa, is a comprehensive economic vision for Bahrain, providing a clear direction for the continued development of the Kingdom’s economy and, at its heart, is a shared goal of building a better life for every Bahraini citizen, as well as for residents of the Kingdom. The vision entails policies in favor of lowering market entry requirements as an effort to attract foreign direct investments to the Kingdom. 98. The geographical and strategic location of Bahrain, as well as many of its economic and political factors, contributed to the Kingdom’s integral role in regional economics. Financial services are the highest contributor to the regional economy. Given its geographical position and the several free