Bahrain has introduced a key legislation regulating fundraising, banning ordinary people and legal entities from raising funds ‘for public purposes’ unless licensed by the relevant ministry.

His Royal Highness Prime Minister Prince Khalifa bin Salman Al Khalifa yesterday issued an edict to this effect, making it compulsory to secure official permission before raising any funds, said a report in the Gulf Daily News (GDN), our sister publication.

Under the new legislation, legal entities must be either registered or licensed. Reasons for the fundraising should also be in compliance with the objective for which it was established.

The new law authorises the relevant ministry to issue a one-year fundraising licence, which can be renewed for a maximum of three months as per request, taking into account public interest.

Ordinary people and legal entities are banned from receiving or sending funds which support military and paramilitary groups, incite racial, nationalistic, religious or sectarian hatred or fund non-governmental organisations, political parties or groups.

Ordinary people and legal entities are also banned from donating part of the proceeds or receiving donations from any sides abroad unless a demand is submitted to the relevant ministry specifying the type, origin and purpose of the donated funds.

In case of approval, the licensee should submit within a month the necessary documents and financial receipts which prove that the overseas funds have been spent as per the goals endorsed by the ministry.

Ordinary people and legal entities should also notify the ministry within seven days about the amount of unauthorised funds they have received from abroad.

The law makes it mandatory for the relevant ministry to approve or reject the donations within 15 days.

The new legislation forbids any transfer or acceptance of funds which may be used to serve goals that contravene Bahrain's constitution, laws, public order and decency.

The licensees should also notify the relevant ministry about the proceeds within 15 days after the fundraiser.

They should also submit copies of bank statements and a detailed list of beneficiaries, in addition to evidence proving their genuine need for money. The new law makes it obligatory to submit documents which prove that the funds have been spent as per pre-set goals. Violators would be first warned before the suspension or revocation of their licences. - TradeArabia News Service