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The Financial Action Task Force (FATF) is the global authority on anti-money laundering and counter-terrorist financing (AML/CFT). It sets international standards through its 40 Recommendations, which guide countries in building effective legal, regulatory, and operational frameworks to combat financial crime. As Bahrain prepares for its 2026 FATF Mutual Evaluation, financial institutions, DNFBPs, fintechs, and corporates must align with the Financial Action Task Force (FATF)'s enhanced evaluation methodology. This briefing note unpacks what evaluators will look for in 2026, key findings from Bahrain’s last assessment, and how institutions can build effective AML/CFT systems that withstand regulatory scrutiny.
Bahrain’s Commitment to AML/CFT Excellence
The Role of the Private Sector in Financial Crime Prevention
2018 FATF Mutual Evaluation
2022 Enhanced Follow-up Report
Identified Shortcomings and Areas for Improvement
Features and Capabilities
Role in Supporting Private Sector Compliance
Legislative Decree No. 4 of 2001
Legal Obligations for Businesses
The Role of Suspicious Transaction Reports (STRs)
Impact on National Security and Law Enforcement
Key Components of a Good STR Report
Content and Formatting Tips
Ensuring Compliance and Confidentiality
Risk Classification and Enhanced Due Diligence
Business Actions After Submitting an STR
Case Studies of Non-Compliance
Legal and Financial Consequences
The FATF’s 5th Round places greater weight on real-world outcomes over written policies. Bahraini companies must now show that their AML/CFT frameworks are not only in place, but actively reducing financial crime risk through risk-based controls, effective CDD/EDD, STR filings, and beneficial ownership tracking.Emerging threats—like cybercrime, sanctions evasion, and misuse of technology—will be a core focus, alongside regional support from MENAFATF to enhance compliance across MENA. Preparation must include updated policies, training, audits, and governance.
Aman is playing a key role in helping companies prepare for the upcoming FATF evaluation by ensuring their compliance with all AML obligations and safeguarding their businesses against financial crime. This includes helping institutions conduct robust risk assessments, design tailored onboarding and EDD procedures, automate STR filings, enhance BO transparency, and build systems that stand up to international scrutiny.
1. A clear overview of the FATF Mutual Evaluation Framework, including technical compliance and effectiveness standards.
2. Breakdown of the FATF 40 Recommendations and 11 Immediate Outcomes (IOs).
3. Deep dive into Bahrain’s legislative framework and past evaluation results.
4. Practical private sector responsibilities under the FATF methodology.
5. Insights into MENAFATF’s role in regional AML/CFT supervision.
6. Strategic guidance to support institutional readiness ahead of the 2026 assessment.
7. A checklist of compliance documents mapped to FATF requirements.
FATF evaluations are high-stakes assessments that influence:
Global financial reputation.
Investor and correspondent banking confidence.
Access to international markets.
Bahrain’s 5th Round Evaluation will apply stricter effectiveness metrics, shorter review cycles, and deeper scrutiny of private sector engagement — including risk-based controls, beneficial ownership transparency, and STR quality.
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This guide offers a comprehensive roadmap to help you navigate regulatory requirements, improve risk management, and enhance your organisation’s financial crime prevention efforts. Please complete the below form to download the full report.
