Alert: Regulatory Changes in Bahrain 2025

Key Highlights of the Resolution

1. Mandatory Bank Accounts

All businesses, regardless of their legal structure—whether individual establishments, virtual (Sijili), or companies—are now required to open a business bank account. This bank account must be with a financial institution licensed by the Central Bank of Bahrain (CBB).

Having a dedicated business bank account ensures smoother financial management, enhances credibility, and aligns with global best practices.

2. Provision of Electronic Payment Services

In today’s digital era, offering electronic payment solutions is no longer optional. Under the new resolution, all businesses must integrate electronic payment services such as:

• Credit card payments

• Payments through Benefit, Bahrain’s national electronic payment network

These services enhance customer convenience, promote cashless transactions, and improve overall operational efficiency.

3. Transactions Through Business Bank Accounts

Another critical requirement is that all payments related to financial transactions must be conducted through the designated business bank account. This includes:

• Supplier payments

• Employee salaries

• Other business-related financial obligations

Centralizing all transactions through a single account fosters better financial tracking and reporting.

4. Implementation Timeline

• Effective Date: The regulation takes effect on December 12, 2024.

• Compliance Deadline: Existing businesses must comply by June 12, 2025, providing a six-month window for transition.

This timeline allows businesses to make necessary preparations without disrupting their operations.

5. One Account for All Branches

Businesses with multiple branches can breathe a sigh of relief—one bank account is sufficient to cover all branches. This simplifies compliance and minimizes administrative overhead.

What This Means for Your Business

The new resolution introduces a transformative shift in how businesses operate in Bahrain. While it might seem challenging initially, these changes are designed to:

• Enhance financial transparency

• Streamline payment processes

• Strengthen Bahrain’s business ecosystem

However, the onus is on business owners to ensure compliance. Non-compliance can lead to penalties and disrupt operations, making early preparation essential.

Steps to Ensure Compliance

To help you navigate these changes effectively, here are actionable steps:

1. Open a Business Bank Account

If you don’t already have one, prioritize opening a business bank account with a CBB-licensed financial institution. Ensure the account is equipped to handle your specific transaction needs.

2. Implement Electronic Payment Systems

Collaborate with payment service providers to integrate credit card payment facilities and Benefit systems into your operations. This step is crucial for both compliance and enhancing customer experience.

3. Review and Update Financial Processes

Audit your current financial workflows to identify areas that need adjustments. Ensure all payments—from payroll to vendor settlements—are routed through the business bank account.

4. Educate Your Team

Inform your employees, especially those in finance and operations, about the new requirements. Training sessions can help them adapt quickly and efficiently.

5. Plan Ahead

Avoid last-minute rushes by starting the compliance process early. This proactive approach ensures a smooth transition and avoids potential disruptions.

What’s Next?

The MOIC is expected to release further guidance on implementing this resolution. Keeping abreast of these updates is crucial for seamless compliance.

Our Expert Assistance

At KHAMS, we understand that adapting to new regulations can be daunting. That’s why we offer comprehensive support to help businesses like yours navigate these changes effortlessly. Our team is equipped to:

• Guide you through the process of opening a business bank account

• Assist in integrating electronic payment solutions

• Provide tailored advice to ensure full compliance