THE KINGDOM OF BAHRAIN’S NATIONAL RISK ASSESSMENT 2025

41 196. All trusts are required to register with the CBB through TSP and the CBB maintains a trust registry office which serves as a centralized repository for trust-related information. 197. TSPs are required to conduct customer due diligence measures including identifying and verifying the identities of the settlors and beneficiaries as well as reporting suspicious transactions and activities to the relevant authorities. 198. Due to the high level of beneficiary transparency, the small number of licensees and low level of activities the ML threats faced by the sector are classified as low risk. CONCLUSION 199. This assessment attempted to identify, analyse, and evaluate the risk of money generating crimes in Bahrain and the targeted sectors. The assessment was able to clearly present the ML threats and vulnerabilities identified through the NRA process wherein input from competent authorities was pooled and analysed in accordance with the FATF methodology and using the World Bank Tool. 200. The threat analysis identified the main proceeds-generating offences that a country’s systems are exposed to including offences predicate offences (both domestic and international) as well as the criminals perpetuating these offences. The most prominent threats relating to money laundering identified in this report were the predicate offence of drug trafficking as the highest threat to ML acts, Fraud, particularly investment fraud, poses the 2nd highest threat to money laundering. This will guide the competent authorities in allocating their resources to concentrate on monitoring and reducing the identified ML threats. 201. Finally, after bringing together and considering the various quantitative and qualitative data, the inherent vulnerabilities associated with different financial and nonfinancial sectors within the Kingdom, including FIs, DNFBPs and VASPs, has been examined. The sectoral analysis has led to various measures in mitigating inherent and residual risks, such as improving the level of compliance with existing AML obligations (customer due diligence, transaction monitoring, and suspicious activity reporting) and enhancing effectiveness of AML supervision and enforcement mechanisms. This includes the practice of engaging with the public and private stakeholders to identify emerging risks in the country.