Regulation: Bahrain makes IBAN mandatory for new expat employees

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The Labour Market Regulatory Authority (LMRA), in co-ordination with the Central Bank of Bahrain and in collaboration with the private sector, announced that it has begun facilitating the issuance of an International Bank Account Number (IBAN) for every incoming expatriate employee in Bahrain.

This step aims to facilitate transactions for employers and raise awareness among expatriate workers about the importance of using bank accounts for contractual transactions to ensure the rights of all parties.

Labour Market Regulatory Authority chief executive and National Committee to Combat Trafficking in Persons chairman Nibras Talib said this initiative is part of the authority’s commitment to raising awareness about the importance of electronic banking transactions to ensure the rights of all parties, especially with regards to facilitating the transfer of wages through banking channels.

He explained that through partnership with the private sector an IBAN is issued for each expatriate worker entering the kingdom through Bahrain International Airport.

Mr Talib emphasised that the initiative aims to provide additional facilities to help employers comply with paying workers’ wages electronically, ensuring the documentation of payment records, reducing wage payment-related legal disputes and expediting litigation processes.

He explained that upon arrival at Bahrain International Airport, expatriate employees will be provided with a step-by-step explanation on how to activate the bank account linked to the issued IBAN, should they choose to do so.

For more information and inquiries, visit the authority’s website at www.lmra.gov.bh or contact the authority’s call centre at 17506055.