The Central Bank of Bahrain (CBB) warns that unlicensed firms often target people through websites, social media, apps and messaging groups. Anyone offering financial services in or from Bahrain needs a CBB licence, and pretending to be licensed is against the law.
Common offers to be wary of
- Forex, crypto or online trading platforms.
- Investment advice and portfolio management.
- Lending, remittance, crowdfunding or insurance offered by unlicensed firms.
Warning signs the CBB lists
- "Guaranteed" or "risk-free" returns, or high fixed returns.
- Pressure to invest straight away.
- Contact only through social media or messaging apps.
- Requests to pay into a personal account or an overseas company.
- Fake licences or certificates, copied logos, celebrity endorsements or fake reviews.
What to do
- Look the firm up in the CBB's register of licensed institutions before sending any money.
- Check its Commercial Registration (CR) number as well.
- Report anything suspicious to the CBB, or call the anti-corruption and economic and electronic security hotline on 992.
The catch
If you deal with an unlicensed firm, you lose the protections that come with a licensed one. Money sent abroad can be very hard to get back, and you may have no formal complaint route.
Steps
- Look the firm up in the CBB register of licensed institutions.
- Check its Commercial Registration (CR) number.
- Do not pay into personal or overseas accounts.
- Report suspicious offers to the CBB or call 992.