Bahrain - All businesses in Bahrain will be required to have a dedicated bank account for all financial transactions from December 13 this year under new rules announced by the government in June.

According to Industry and Commerce Ministry assistant under-secretary of commercial registration and companies Faisal Ahmed Mohamed Saleh, the move aims to boost transparency and accelerate the shift towards digital payments.

Explaining that this was “a significant step towards modernising financial practices”, Mr Saleh told a media briefing at the offices of the ministry yesterday that ‘Ministerial Order No. 43 of 2024’ mandates that all commercial entities operating in the kingdom must establish and maintain a dedicated bank account with a licensed Bahraini bank.

“This new regulation aims to enhance financial transparency and promote electronic payments among commercial entities,” he said.

“By requiring dedicated bank accounts, we can better monitor financial transactions and reduce the risk of financial irregularities.”

The order also stipulates that all commercial entities must offer electronic payment options to facilitate transactions.

“This move will streamline financial processes and reduce reliance on cash transactions, making it more convenient for both businesses and consumers,” Mr Saleh added.

The new regulations apply to all commercial entities registered under Bahrain’s Commercial Registry Law No. 27 of 2015, including individual establishments, commercial companies (excluding limited partnerships), and branches of foreign companies.

While the official did not go into detail on the penalties for non-compliance stating that it would be treated similar to other violations of the law, information in the public domain shows that failure to comply with the order may result in severe penalties, including: Suspension of commercial registration, daily administrative fines, a lump-sum administrative fine and striking off the commercial register.

The order will come into effect on December 13, for all new commercial registrations and existing licensed business have until June 13, 2025 to comply.

By mandating dedicated bank accounts and promoting electronic payments, the ministry aims to enhance transparency, efficiency, and overall financial integrity in the commercial sector.

Industry and Commerce Minister Abdulla bin Adel Fakhro affirmed in a statement that the decision aligns with the economic and technological developments in the kingdom. “It is an important step to enhance the efficiency of commercial establishments and support digital transformation, as the decision will contribute to raising the level of transparency and providing a safer and more reliable financial environment,” he said.

He stressed the need to abide by the resolution, as it contributes to the development of the business environment and supports enhancing competitiveness locally and internationally.

“The resolution is not only limited to opening a commercial bank account, but also obliges establishments to exclusively use this account for all their financial transactions, in order to enhances transparency in money management and provide a comprehensive view of financial conditions,” the minister added.

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