National AML-CFT-CPF Strategy 2025-2027

4 EXECUTIVE SUMMARY: The Kingdom of Bahrain conducted its first comprehensive National Risk Assessment (NRA) in 2017, which was endorsed by the Cabinet of Ministers in 2018. The outcomes of this assessment contributed to strengthening the Kingdom’s AML/CFT framework, including amendments to laws and legislation, and enhancing supervisory and regulatory efforts across various government authorities. Although the NRA was subsequently updated in 2021, the 2025 National Risk Assessment aims to reassess the risks in light of emerging threats and inherent vulnerabilities. This is primarily driven by advancements in technology across all sectors, as well as developments in the products and services provided within the sectors covered by the assessment. Overall, the report provides a comprehensive analysis of national risks and vulnerabilities related to money laundering, terrorist financing, and proliferation financing, as well as the associated predicate crimes. This assessment is conducted through a detailed analysis using the World Bank Tool, which assists in identifying threats and vulnerabilities across the sectors covered. The report initially outlines the methodology used for assessing these risks, examines the national ML/TF risk environment, and identifies the main sources and methods of money laundering, terrorist financing, and proliferation financing activities. Furthermore, the assessment relies on data regarding predicate offenses, the number of suspicious reports, prosecutions, and convictions. Given the Kingdom’s geographical location, the threat assessment takes into account both national and international threats. Accordingly, vulnerabilities are evaluated within the relevant reporting sectors, specifically financial institutions and designated non-financial businesses and professions (DNFBPs), to determine the level of risk in the context of the identified threats. More specifically, the assessment includes a review of the current anti-money laundering and counter-terrorist financing controls implemented by the various supervisory authorities. Based on the findings and outcomes of the National Risk Assessment, the National Strategy for CombatingMoney Laundering, Terrorist Financing, and Proliferation Financing (2025–2027) has been developed. The Kingdom of Bahrain affirms its high-level political commitment through the endorsement of this strategy by the Committee for Combating Extremism, Terrorism, and its Financing and Money Laundering.