Manama: Faisal Ahmed Mohammed Saleh Abdulla, assistant undersecretary for commercial registrations and companies at the Ministry of Industry and Commerce, highlighted the significance of Ministerial Decision (43) of 2024 regarding payments for commercial transactions. The decision is expected to empower businesses, protect consumer rights, and improve the commercial environment by simplifying transactions and enhancing transparency. According to Bahrain News Agency, during a media briefing attended by Bader Fareed Al Saad, Director of the Registration Directorate, and senior officials, Faisal described the decision as a step towards strengthening the national economy. He noted that it would enhance trust between consumers and businesses, support economic growth, and improve operational efficiency. Faisal emphasised the ministry's commitment to regulating payment mechanisms for commercial transactions to protect consumers and ensure the accuracy of financial data, contributing to combating money laundering. T he decision mandates multiple payment options for consumers, ensuring compliance with VAT and selective tax frameworks while assisting business owners in tracking cash flows. The decision applies to various business entities, including sole proprietorships, virtual shops under the "Sijili" (My CR) platform, commercial companies, and branches or offices of foreign firms operating in Bahrain. Businesses must maintain a commercial bank account with a licensed bank in Bahrain. All transactions must be conducted through this account, with electronic payment services provided to clients. Implementation will occur in two phases. Phase one will begin on December 13, 2024. Phase two will take effect on June 13, 2025, making the decision mandatory for all new businesses. Existing entities will have a six-month grace period from this date to align with the requirements. The decision aims to protect consumers by ensuring payments are made directly to businesses rather than intermediaries. It also supports business owne rs in tracking financial flows, maintaining accurate data, and preventing financial misuse. Faisal said businesses are urged to upgrade their digital systems to provide innovative services and multiple payment options, enhancing user convenience and higher efficiency. The ministry plans to monitor implementation through inspections, ensuring compliance with the new rules. A collaborative effort with banks will facilitate opening commercial accounts and providing electronic payment solutions. While businesses are free to choose their preferred payment methods, all transactions must be linked to commercial accounts to minimise electronic fraud risks. Faisal concluded by stressing the importance of raising awareness among businesses about the new requirements, urging them to take steps to comply before the grace period ends. New businesses will be required to adhere to the regulations upon their establishment, ensuring a seamless transition to the new framework.
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