31 July 2010

The Anti-Money Laundering Unit (AMLU) at the Interior Ministry has registered until June this year 136 suspicious transactions, with the highest number of cases reported in May.

According to the latest financial crimes statistics, authorities registered 31 cases in May and 26 cases each in March and April this year. In January twenty cases and in February twenty-three cases were reported.

Such transactions are brought to the notice of the authorities by financial exchanges and establishments, who fill up the Suspicious Transaction Report (STR) when they have apprehensions about any source or individual.

Authorities act upon the information received and work in tandem with the Central Bank of Bahrain and the Ministry of Finance to investigate on a case-by case basis. Last year, the total number of STRs registered by the AMLU unit was 240.

In June this year, His Majesty King Hamad bin Isa Al Khalifa approved Law 32 on financial disclosure. According to the law, top officials and their families can be fined up to BD15,000, jailed for five years, lose jobs - or get all the punishments combined - if they are found to amass wealth disproportionate to their income. The authority has the right to ask for confidential information from banks and companies during investigation, and question those involved in suspicious financial dealings. Officials who fail to submit their wealth statements on time could be fined up to BD10,000, or jailed for three years or both. It also covers all the companies in which the government has at least 50 per cent stake.

Bahrain was the first country in the Gulf to issue a special decree to check money laundering and terrorist financing.

This became Law by Decree No. 4 for 2001 which led to the establishment of the AMLU.

The Anti-Money Laundering Unit further laid down the legal principles and framework to ensure the disclosure of any suspicious financial activity in the Kingdom.

The first money laundering case in the Kingdom was reported when two couples legally running a night club were convicted in April 2007 by the Higher Criminal court after it was discovered  that a huge amount of money was transferred to bank accounts. The accused used their illegal money and deposited it along with the revenues generated from  the night club, into bank accounts in different countries.