Bahrain has introduced more stringent regulations and substantial penalties for public fundraising violations, marking a significant update to the kingdom's financial oversight framework. Under the new rules, breaches of public fundraising laws will incur fines of up to BD10,000, showing the government's commitment to greater transparency and accountability in charitable and public welfare activities. Additionally, the Social Development Ministry has been granted explicit authority to freeze or seize funds collected in contravention of these legal provisions, empowering it to take decisive action against non-compliant entities and individuals.
New Regulatory Framework Detailed
A full new regulatory framework for public fundraising in Bahrain has been established through three ministerial decisions issued by Social Development Minister Osama Al Alawi. Mr. Al Alawi promulgated Decisions 51, 52, and 53 of 2026, which are designed to implement amendments made in 2025 to the 2013 law governing fundraising for public purposes. These decisions formally create a dedicated Financial Licensing Office, a key body responsible for overseeing and approving fundraising activities. The new framework outlines nine specific administrative offences related to fundraising, providing clear guidelines on prohibited actions. To streamline the application process, the decisions also introduce standardized forms for applications concerning fundraising activities, donations, and financial transfers, aiming to enhance efficiency and clarity for all stakeholders.
Under the updated regulations, legal entities are explicitly prohibited from raising money for public causes without first obtaining a proper licence from the newly established Financial Licensing Office. This requirement ensures that all organizational fundraising efforts are sanctioned and monitored by the authorities. The rules also stipulate that individuals are restricted to fundraising solely for religious purposes, clearly delineating the scope of personal fundraising initiatives. A significant provision in the new framework explicitly bars any fundraising activities for public purposes from taking place inside Islamic places of worship, ensuring that religious sites remain focused on their primary spiritual functions. A key and protective measure introduced by the new regulations also prohibits the involvement or use of children in any fundraising activities, safeguarding minors from potential exploitation or undue pressure.
Penalties and Financial Oversight
The new regulatory framework details a strong system of penalties for non-compliance. Eight of the nine administrative offences outlined in the new regulations carry substantial fines, ranging from a minimum of BD100 to a maximum of BD10,000, reflecting the seriousness with which violations will be treated. A specific penalty has been set for financial record-keeping breaches: failure to maintain or submit proper financial records, as required by the updated framework, can incur a maximum penalty of BD3,000. This emphasizes the importance of careful financial documentation in all fundraising operations. The rules also stipulate a strict limit on operational expenditures, mandating that administrative costs associated with fundraising activities must not exceed 10% of the total amount raised, ensuring that the vast majority of collected funds reach their intended beneficiaries.
To further enhance transparency and accountability, organisations are now mandated to retain all financial records pertaining to their fundraising activities for a minimum period of five years. This extended retention period allows for thorough auditing and oversight. Additionally, a critical safeguard has been introduced: prior ministry approval is now required before any collected funds can be spent on a purpose different from the one for which they were originally raised. This provision prevents the diversion of funds and ensures that donor intentions are respected and upheld.
Context and Enforcement Powers
The Social Development Ministry has been granted explicit and extensive authority to enforce the new regulations on public fundraising across Bahrain. This includes significant powers to freeze or take control of money raised in breach of the law, as well as to seize funds collected in contravention of the legal provisions, as part of the broader oversight outlined in the recent ministerial decisions. These enforcement capabilities are designed to act as a strong deterrent against illicit fundraising practices and to protect public trust. The Central Bank of Bahrain (CBB) plays a key role in the financial ecosystem that these regulations seek to govern, particularly concerning financial transfers and the movement of funds, working in conjunction with the Ministry to ensure compliance. Entities such as SPAC WLL, and individuals like Mohammed Darwish, will operate under the updated framework, which mandates stricter adherence to licensing requirements and financial transparency. The full nature of the new rules aims to ensure all fundraising activities, whether undertaken by organizations or individuals, comply with the specified legal parameters, thereby fostering a more secure and trustworthy environment for public donations and charitable initiatives in the Kingdom of Bahrain.
