Bahraini Industry and Commerce Minister Abdulla bin Adel Fakhro issued Decision No 46 of 2026 to update anti-money laundering and terrorist financing regulations across the kingdom. These new rules impose stricter oversight on the precious metals sector.
Under the updated mandate, businesses in Bahrain are prohibited from selling gold or jewellery for BD3,000 or more in cash. The regulation aims to prevent illicit financial flows by requiring non-cash payment methods for high-value transactions. All traders must comply with these payment limits immediately to ensure alignment with national financial security standards.
New Compliance and Reporting Requirements
Traders in Bahrain are now required to obtain a copy of the buyer’s identity card for all cash sales exceeding BD2,000. This measure mandates that businesses record specific personal details for every transaction reaching this threshold.
The new regulations require businesses to retain these records for a period of five years. This documentation must be kept on file to ensure that all financial activities remain transparent and available for inspection by regulatory authorities. These reporting standards apply to all gold and jewellery traders operating within the kingdom.
Administrative Fines for Regulatory Breaches
Businesses operating in Bahrain face significant financial penalties for failing to adhere to the updated regulatory framework. Compliance failures now trigger administrative fines ranging from BD1,000 to BD2,500. These monetary sanctions apply to any gold or jewellery trader found in violation of the established oversight requirements.
The new mandate specifically addresses documentation standards to ensure long-term financial transparency. Failure to retain transaction records for the required five-year period results in a fine between BD1,000 and BD2,500. Regulatory authorities perform inspections to verify that these records remain available for review throughout the mandatory storage window.
More severe penalties apply to breaches involving high-risk financial activities. Fines for dealing with sanctioned individuals or entities, or for failing to maintain adequate internal auditing processes, range from BD25,000 to BD50,000. These higher-tier financial consequences aim to prevent the misuse of the precious metals sector for illicit financial flows. All gold and jewellery traders must adhere to these compliance standards to avoid these administrative actions.