New e-payment and business banking rules now in effect in Bahrain
Bahrain’s new payment regulations for commercial entities are now fully in effect. Businesses must comply with strict requirements on using dedicated business bank accounts and offering electronic payment options. Non-compliance may result in penalties, including fines and suspension of commercial licences.
Who Is Affected?
All commercial entities operating in Bahrain, including:
- Commercial companies (of all sizes)
- Sole proprietorships
- Virtual stores registered under the “Sijili” (My CR) system
- Branches and offices of foreign companies
Key Compliance Requirements
Businesses must now:
- Maintain a Dedicated Business Bank Account
All financial transactions must be processed through a Bahrain-based commercial bank account. Personal accounts can no longer be used for business payments. - Offer Electronic Payment Options
Businesses must provide customers with at least one approved digital payment method, such as point-of-sale (POS) terminals, online gateways, or mobile payment solutions. - Keep Personal and Business Finances Separate
The mixing of business and personal finances is prohibited under the new rules. - Ensure Financial Transparency
Transactions must be traceable and properly documented to comply with anti-money laundering and VAT regulations. - Be Prepared for Inspections
The Ministry of Industry and Commerce has begun monitoring compliance and may carry out inspections.
Why This Matters
The regulation aims to:
- Promote transparency and financial accountability
- Strengthen consumer protection
- Modernise Bahrain’s payment landscape
- Combat tax evasion and financial crime
What You need to Do Now?
- Confirm your business is operating with a dedicated commercial bank account.
- Implement at least one approved e-payment method.
- Review internal processes to ensure compliance.
How ASAR Can Help?
We can assist you by:
- Clarifying how the rules apply to your specific operations
- Reviewing your existing payment and banking arrangements
- Identifying and addressing any compliance gaps
- Supporting you in responding to regulatory inspections or queries
For more information or tailored advice, please contact our Bahrain team at asarbh@asarlegal.com.
