Uniform anti money laundering policy and laundering process eradication

This thesis was submitted for the award of Doctor of Philosophy and was awarded by Brunel University LondonThis study aims to investigate the effect of uniform anti-money laundering policy adoption in Bahrain. The implementation of such a policy is required to improve transparency that may assist Bahrain Government, CBB and Financial Intelligence Unit (FIU) to compel investors to declare sources of money to banks voluntarily and Non-Banking Financial Companies(NBFCs) and report all violations of regulatory benchmarks to Compliance Directorate (CD) and FIU. The elevation of such transparent information exchange will deter launderers from placement, layering and integrating ill-gotten gains through the Bahraini financial institutions as well as constricting legitimisation of laundered proceeds and retarding funding of criminal activities. To examine the above, this study adopted a mixed method research design, comprising of in-depth interviews and secondary data. 31 employees from various banks and NBFCs were interviewed, and the secondary data was collected from banks, NBFCs, CD, FIU and the Public Prosecutor. These were analysed using content and correlation analysis to assess the validity of in-depth responses and secondary data. The findings of the study reveal the necessity to conform to the Basel guidelines and Financial Actions Task Force (FATF) 40 recommendations. The conformity to these equips banks and NBFCs to utilise Customer Due Diligence (CDD), Enhanced Due Diligence (EDD) and Risk-Based Due Diligence (RBDD). Their judicious application enables them to communicate Suspicious Activity Reporting (SAR) and Suspicious Transaction Reporting (STR), share authentic information, analyse and report all breaches and awareness to the CBB, FIU, Ministry of Interior and Public Prosecutor. They are required to search, detect, convict, confiscate illicit wealth and constrict unlawful activities, signalling the impact of the uniform policy. Their utilisation is needed to enable banks and NBFCs to discharge the role of gatekeepers and disrupt money-laundering process. Finally, the study justifies the necessity to establish the conceptual framework and adopt FATF fully to reform anti-money laundering governance. They allow CBB and FIU to collaborate with banks and NBFCs, improve countermeasures and apply these to protect the financial integrity of Bahrain. Focus on such key goals stimulates a review of customer identity and sources of fund assess the authenticity of funding sources declared by customers and initiate search and seizure of tainted money