THE KINGDOM OF BAHRAIN’S NATIONAL RISK ASSESSMENT 2025

2 TABLE OF CONTENTS DISCLAIMER .......................................................................................................................... 1 LIST OF ACRONYMS ............................................................................................................... 4 OBJECTIVE ............................................................................................................................. 6 EXECUTIVE SUMMARY ........................................................................................................... 7 Overview....................................................................................................................... 7 National Cooperation and Coordination .......................................................................... 7 Key Findings .................................................................................................................. 8 Geographical Background .............................................................................................. 9 Economical Background and Financial Inclusion.............................................................. 9 Political Background ...................................................................................................... 9 METHODOLOGY................................................................................................................... 10 Terminology..................................................................................................................10 TeamComposition and Private Sector Engagement .........................................................12 NRA Process.................................................................................................................13 SECTION 1: MONEY LAUNDERING RISK ASSESSMENT............................................................ 15 Legal Persons and Arrangements ML Risk Assessment ............................................................15 Overview – Risk and Context .............................................................................................................. 15 Methodology ................................................................................................................................... 16 Basic & Beneficial Ownership Information ............................................................................................ 16 Foreign Legal Structures .................................................................................................................... 17 Legal Persons ................................................................................................................................... 17 Legal Arrangements .......................................................................................................................... 19 Trusts .............................................................................................................................................. 19 Waqfs ............................................................................................................................................. 20 MONEY LAUNDERING THREAT ASSESSMENT AT A NATIONAL LEVEL ...................................... 21 Threat Overview and Context .........................................................................................21 Threat Objective ...........................................................................................................22 PREDICATE OFFENCES THREAT ASSESSMENT......................................................................... 22 Predicate Offence Analysis............................................................................................22 ML Threat – Drug Trafficking ...........................................................................................23 Case Study No. 1 – ML using Virtual Assets Service Provider .............................................................. 24 ML Threat – Fraud ..........................................................................................................24 Case Study No. 2 – Investment Fraud ............................................................................................... 25