Our Associate, Habiba Reda throws light on unlicensed financial
activity in Bahrain and its regulation.
The financial sector plays a pivotal role in
Bahrain's economic growth, acting as the largest non-oil
contributor to the Kingdom's GDP. Acknowledged as the GCC'S
most established sector, Bahrain comprises of 364 local, regional,
and global financial institutions. With such remarkable growth and
as the market evolves, unlicensed activity can emerge as a
persistent challenge. This activity can be damaging to the economy
as financial institutions may inadvertently or knowingly engage in
illicit activities, undermining the integrity of the financial
system and efforts to combat financial crimes, which can in turn
reduce consumer confidence and investment in the financial sector.
With consumer protection and economic growth being at the forefront
of the Central Bank of Bahrain's (CBB) objectives, financial
regulation has been approached with the aim to
