Anti-Money Laundering & Anti-Terrorism Financing Policy & Procedures
AFS is regulated and supervised by the Central Bank of Bahrain. Central Bank of Bahrain requires its licensees to comply with all aspects of legislation related to Anti-Money Laundering and combating terrorist financing, including Customer Due Diligence. AFS complies with Central Bank of Bahrain
guidelines to combat money laundering in the Kingdom of Bahrain, namely the Amiri Decree Law No. 4 of 2001 with respect to the prevention and prohibition of the laundering of money and the Central Bank of Bahrain Money Laundering Regulations issued in October 2002. Bahrain is a member of the Gulf cooperative Council (GCC), which is a member of the Financial Action Task Force (FATF). Central Bank of Bahrain asks for strict compliance with UN and FATF directives.
AFS has issued an anti-money laundering manual, which has been approved by the Board of Directors and complies with the Central Bank of Bahrain regulations, FATF recommendations and international best practice in this respect. These procedures include specific requirements with regard to, amongst other things:
Know your customer (KYC) guidelines
AFS has strict KYC procedures in place which include the validation of business and customer identities prior to commencing business with any customer. Such information is updated on a regular basis.
Suspicious Activity Reporting
Any staff identifying an account or transaction as suspicious is required to report the case to his / her unit's Money Laundering Reporting Officer. The MLRO will review the facts and determine whether a report to the local regulator is required. The filing of a suspicious Transaction Report (STR) cannot be suppressed. Under no circumstances will staff “tip-off” the customer that an STR is being prepared.
It is a requirement that all employees who have potential contract with customers or who process transactions on behalf of customers are required to undertake anti-money laundering training.
AFS is required by law to maintain records which are appropriate to the scale, nature and complexity of the customer’s business. All identity or business relationship records must be kept for a minimum period of 5 years from the end of the banks’ relationship with the customer.
AFS ensures compliance with its AML procedures through regular reporting. In addition, AFS’s internal audit unit conducts periodic review of AFS’s compliance with AML procedures.