The Public Prosecution has put on trial before the High Criminal Court a person accused of laundering more than BD 2 million. The Court will start hearing the case on Thursday, next week.
The Head of the Financial Crimes and Money Laundering Prosecution said the suspect collected funds from several for investment purposes without obtaining the necessary licences from Bahraini authorities.
The investigation began after receiving a report on the suspect from the Financial Investigation Department, citing suspicious transactions. The report said the suspect received funds and performed various transactions to make it legal and conceal their source and nature.
Following an inspection of the suspect’s accounts and properties, Public Prosecution found that the suspect had received around BD3 million from one of the victims. Prosecutors found that the suspect was running a Ponzi scheme to lure investors and paid profits to earlier investors with funds from more recent investors.
“He was paying part of the money received as profit to the victim to hoodwink him into thinking that the scheme is reliable,” prosecutors said. Police then arrested the suspect while also seizing his accounts and property.