BMA reviewing, enhancing wealth management regulation

The aim is to develop and implement regulation, which is on par with advanced wealth management centers of the world.

The new rules being developed focus on such issues as strengthening bank-customer confidentiality and the establishment of trusts.

"Private banking is one of the most dynamic areas in international finance and, given the global trends and the increase in the number of wealthy individuals in the Middle East/North Africa (Mena) region, BMA is focusing on the strategic development of wealth management business," said Mr. Abdul Rahman Al Baker, Director, Financial Institutions Supervision, at the BMA.

The assets of high net worth individuals (HNWIs) from the Mena region are estimated at about US$1.3 trillion, of which 80% are held by GCC HNWIs.

"Some of these HNWIs are increasingly looking at opportunities in the Middle East region, following the continuing volatility in the international financial markets," said Mr. Al Baker.

In Bahrain, private banking business has grown significantly in the past five years, he said.

BMA recently undertook a detailed survey to determine the size of the private banking industry, as a first step towards the strategic development of this line of business.

"We are committed to fostering an environment which is appropriate for the further growth and development of private banking and wealth management services, both conventional and Islamic, from the Kingdom," said Mr. Al Baker.

"Sound regulation has historically been the foundation stone of Bahrain's success as the region's leading financial center and we are determined to ensure that this remains the case."