Bahrain: Court Hands Down Heavy Punishment In Two Major Money Laundering Cases
The High Criminal Court has handed down significant prison sentences and fines in two separate money laundering cases, highlighting the country’s commitment to tackling financial crime.
In the first case, two Bahraini defendants were sentenced to six years in prison each, fined BD10,000, and ordered to forfeit over BD10 million in assets. They were also required to jointly repay over BD10.7 million to the victims.
The defendants were found guilty of collecting funds from individuals with the promise of investment returns, without obtaining the necessary licenses. They managed to convince a large number of investors to participate in their scheme, despite having no legal authorisation to do so.
The National Financial Investigation Center (NFIC) played a crucial role in uncovering the scheme. Their investigation revealed that the defendants collected over BD10 million from approximately 500 victims. The funds were then laundered through various transactions, including transfers within and outside Bahrain, and cash withdrawals.
In the second case, a total of 22 individuals were convicted of money laundering. Two Bahrainis and 20 Asians were sentenced to five years in prison each, fined BD100,000, and ordered to forfeit over BD11.7 million in assets. The foreign nationals will also be deported from Bahrain after serving their sentences.
The NFIC investigation revealed that the defendants were involved in receiving funds derived from drug trafficking and laundering them through their bank accounts. They then converted the funds into cryptocurrencies using peer-to-peer (P2P) platforms, aiming to conceal their origin and legitimise them.
In light of these cases, the Head of the Financial Crimes and Money Laundering Prosecution Office issued a public warning. He urged individuals to exercise extreme caution when dealing with cryptocurrency trading platforms and to verify the legitimacy of any investment opportunities before committing funds. He also stressed the importance of obtaining proper licenses and guarantees when investing, and to avoid falling prey to unrealistic promises of quick returns.
