Bahrain has taken a significant step towards enhancing financial transparency and security for expatriate workers by making the International Bank Account Number (IBAN) mandatory for all new expat employees. This initiative, led by the Labour Market Regulatory Authority (LMRA) in coordination with the Central Bank of Bahrain and the private sector, aims to streamline wage transactions and ensure the rights of both employers and employees.
Nibras Talib, Chief Executive of the LMRA and Chairman of the National Committee to Combat Trafficking in Persons, highlighted that this new measure underscores Bahrain’s commitment to promoting electronic banking transactions. Talib emphasized the importance of using bank accounts for contractual transactions, particularly in facilitating the transfer of wages through secure banking channels.
Upon arrival at Bahrain International Airport, new expatriate workers will receive an IBAN and a guide on how to activate their associated bank accounts. This initiative is designed to provide additional support to employers in complying with electronic wage payment regulations, reducing legal disputes related to wage payments, and expediting any necessary litigation processes.
The LMRA’s initiative is a proactive move to ensure that expatriates are well-informed about the importance of maintaining a bank account for all financial transactions, thereby securing their rights and providing a clear record of payments.
For more information on this new regulation, individuals are encouraged to visit the LMRA‘s official website or contact their call center.
