Counter-terrorism financing in the age of digital currencies: A critical and comparative analysis of the legislative approaches in Bahrain and the United Kingdom

Aljawder, Salman 2024. Counter-terrorism financing in the age of digital currencies: A critical and comparative analysis of the legislative approaches in Bahrain and the United Kingdom. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This research examines the legislative responses and frameworks in Bahrain and the United Kingdom (UK) to counter-terrorism financing (CTF) involving cryptocurrencies. The study evaluates the effectiveness of international and national regulations in addressing cryptocurrency-related terrorism financing (TF), assesses the implementation of the 'Financial War on Terrorism' in both jurisdictions and analyses the strengths and weaknesses of their current CTF legal frameworks. It also proposes enhancements based on FATF Recommendations to address modern challenges in preventing the misuse of cryptocurrencies for TF and related financial crimes, such as money laundering (ML). Key findings highlight the UK's cautious approach to regulating cryptocurrency exchanges through a framework established in 2018, which emphasises transparency and uniform requirements. In contrast, Bahrain employs a proactive approach with a regulatory sandbox under the Central Bank of Bahrain (CBB) tailored to the specific needs of exchanges. Both countries use a risk-based approach, adapting their regulations based on assessed risks. The analysis of the 2018 Mutual Evaluation Reports (MERs) for both countries reveals strengths and weaknesses in their frameworks. The UK demonstrates a robust understanding of TF risks, effective public/private partnerships, and proactive enforcement. Bahrain, while developing a comprehensive system and proactive measures, faces challenges such as fewer prosecutions and a less integrated institutional framework. Ultimately, the research concludes that while both Bahrain and the UK have made significant progress, they can benefit from mutual insights. Bahrain could learn from the UK’s extensive regulatory experience, while the UK could enhance its collaborative capacities by emulating Bahrain’s integrated approach. Both countries should tailor their strategies to balance between novel and traditional financial avenues, ensuring robust defences against evolving terrorist financing tactics. The study provides a comprehensive set of policy recommendations aimed at strengthening the CTF frameworks in both jurisdictions.

Item Type:	Thesis (PhD)
Date Type:	Completion
Status:	Unpublished
Schools:	Schools > Cardiff Law & Politics
Subjects:	K Law > KZ Law of Nations
Uncontrolled Keywords:	Cryptocurrency, terrorism financing, AML, FATF, Bahrain, United Kingdom, regulatory frameworks, crypto regulation, counterterrorism law, financial intelligence
Date of First Compliant Deposit:	25 April 2025
Date of Acceptance:	22 April 2025
Last Modified:	25 Apr 2025 12:38
URI:	https://orca.cardiff.ac.uk/id/eprint/177925

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