Bahrain ‘most serious’ Arab country in fight against money laundering

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

Bahrain was ranked first in the Arab world, and second in the Middle East, in terms of least risk of exposure to money laundering and terrorist financing, according to the annual Basel Index for Combating Money Laundering.

Bahrain has a risk score of 4.41 points – according to the report, which is considered the only independent indicator issued by a non-profit organisation, and classified countries according to money laundering risks.

The kingdom came second in the Middle East after Israel, with 3.62 points, in the field of combating money laundering. Egypt is in third position with 4.96 points, while Saudi Arabia and Lebanon were ranked fourth and fifth, respectively, with identical 5.33 points. Countries with high scores, based on a 10-point scale, are classified as having a significant risk of money laundering and terrorist financing.

Among the riskiest countries in the Middle East include Tunisia (6th), Morocco (7th), Qatar (8th), UAE (9th), Jordan (10th), Algeria (11th) and Yemen (12th). The report indicates that risk levels in the Middle East region are higher than the global average in all areas. The report urges hard work to improve its performance in all categories, especially those related to public accountability, as well as financial secrecy.

According to the report, Latin America was the weakest region in the world in terms of combating corruption and bribery, as 90% of its countries are listed, with the US as frontiers for money laundering crimes.

The Basel Anti-Money Laundering Index is an independent annual classification that assesses the risks of money laundering and terrorist financing around the world. The Basel Institute for Government has issued annual reports, since 2012, and it presents risk scores based on data drawn from 16 publicly available sources, including a group Financial Action (FITF), Transparency International, the World Bank, and the World Economic Forum.

Risk scores cover five areas, including the quality of anti-money laundering frameworks, the financing of terrorism, bribery and corruption, transparency and financial standards, accountability, and legal and political risks. The greatest risk of money laundering stems from illicit proceeds of foreign origin that transit the country. The Basel report covers about 141 countries around the world, with sufficient data to calculate the degree of risk.

Financial capital

Bahrain is one of the oldest and most reputable financial capitals in the Middle East. It is home to roughly 400 financial institutions, including more than 114 licensed banks