Introduction

‍Bahrain's financial crime compliance environment is entering a more demanding phase. With a MENAFATF mutual evaluation approaching, Decree-Law No. (36) of 2025 now in force and enforcement intensifying across the region, the stakes for compliance leaders, MLROs and regulated firms have rarely been higher. The Bahrain Horizon Scanning 2026 report provides strategic analysis of the financial crime threats, AML regulation, sanctions exposure and supervisory trends shaping Bahrain and the wider GCC; and what they mean for your organisation in practice.

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What's inside

The 2026 financial crime threat landscape

AI-enabled fraud, deepfake financial crime, professionalised cybercrime, crypto investment schemes, beneficial ownership gaps, and sanctions evasion risks. Each threat is explored through regional case studies with practical implications for banks, fintechs, DNFBPs and professional service firms operating across the GCC.

Bahrain's updated AML/CFT framework

A detailed breakdown of Decree-Law No. (36) of 2025: expanded definitions of criminal proceeds, stronger corporate accountability, enhanced confiscation powers; and what these changes mean for your governance, controls and regulatory exposure.

FATF mutual evaluation readiness

This round focuses on effectiveness and outcomes, not just formal compliance. The report explains how FATF standards translate into private sector expectations, where supervisory scrutiny will fall, and why risk-based controls need to be demonstrable.

Sanctions, virtual assets and cross-border risk

Iran-related sanctions exposure, the complexities of navigating overlapping US and EU regimes, virtual asset regulatory developments and the growing coordination between GCC supervisory authorities through bilateral MoUs and the Gulf Strategy for Joint Cooperation.

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Why it matters

‍Bahrain is positioning itself as a regional anti-financial crime leader. That ambition brings real supervisory consequences. Firms that wait for enforcement signals will be behind. Those that act now — recalibrating risk frameworks, strengthening controls and embedding horizon scanning into board-level oversight — will be far better placed for what 2026 brings.