THE KINGDOM OF BAHRAIN’S NATIONAL RISK ASSESSMENT 2025

43 SECTION 2 – TERRORIST FINANCING & PROLIFERATION FINANCING AND NPO RISK ASSESSMENT 202. A proper risk assessment of terrorism financing (TF) is a cornerstone of safeguarding both national security and financial stability. It enables governments and financial institutions to identify threats, vulnerabilities, and potential channels that may be exploited by terrorist networks. By systematically evaluating these risks, authorities can allocate resources more efficiently and design targeted policies that strengthen resilience against TF activities, rather than applying generic or misdirected measures. Furthermore, effective TF risk assessments are vital for compliance with international standards and application of a risk-based approach. Beyond compliance, such assessments enhance detection capabilities by improving monitoring systems, reducing false positives, and enabling better cooperation at both domestic and international levels. Ultimately, this process protects the integrity of the financial system, fosters investor confidence, and supports global efforts to disrupt and prevent terrorism financing. TERRORIST FINANCING RISK ASSESSMENT AT A NATIONAL LEVEL 203. At the national level, the General Directorate of Criminal Investigation and Forensic Science is mandated to combat acts of terrorism in Bahrain, while the Financial Intelligence National Center (FINC) pursues cases related to the financing of terrorism, both entities coordinate closely once a case is initiated. At the prosecutorial stage, the Attorney General has established a specialized Terrorism Prosecution Office to investigate terrorism and terrorism financing cases. When financial links are suspected, this office directs FINC to examine the financial aspects of the case. These coordinated measures have led to successful prosecutions and convictions. Alternatively, in instances where conviction is not achieved but law enforcement authorities have reasonable grounds for suspicion, the individual is designated on the National Terrorist List. 204. To ensure high-level commitment, Bahrain formed the Committee for Combating Extremism, Terrorism, its Financing, and Money Laundering. The Committee is responsible for studying all issues related to combating extremism, terrorism, its financing, and money laundering, and in particular, it has the following to do: − Proposing policies, coordinating and unifying general national efforts, reviewing and updating them periodically in the field of combating extremism, combating terrorism, its financing and money laundering. − Proposing the classification and inclusion of individuals and entities on national terrorism lists. − Assessing the risks of extremist ideology, terrorism, and money laundering. 205. Proposing legislation and regulations related to combating extremism, terrorism, its financing, and money laundering, and coordinating with the competent authorities in the Kingdom and obtaining their opinions on this.