BERMUDA FINANCIAL INSTITUTIONS FACE HEIGHTENED FOCUS ON AML/ATF RISK ASSESSMENT

Increased Scrutiny Following CFATF Mutual Evaluation

In response to the recent mutual evaluation of Bermuda by the Caribbean Financial Action Task Force (CFATF), financial institutions in the island nation are under increased scrutiny regarding Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) regulations.

Compliance Requirements for Financial Institutions

To comply with the heightened focus on AML/ATF risk assessment, financial institutions must:

Appoint an AML Compliance Officer to oversee AML/ATF risk
Identify and disclose beneficial owners at either a 25% or 10% threshold level, depending on the regulated sector
Develop their own methodology for risk-assessing countries

Mandatory Annual AML Assessment and Enhanced Due Diligence

All AML/ATF-regulated financial institutions (RFIs) are mandated by law to complete an independent AML assessment each year. Additionally:

Politically Exposed Persons (PEPs) are considered high-risk and require enhanced due diligence, including identification of the source of funds and wealth

EY Bermuda Ltd.’s Expertise in AML/ATF Compliance

To navigate these complex requirements, EY Bermuda Ltd. is offering a range of services, including:

KYC remediation and alert clearing
Financial crime managed services
Utility design

The firm’s team of AML/ATF professionals, certified by the Association of Certified Anti-Money Laundering Specialists (ACAMS), has extensive knowledge and working relationships with local regulators.

Expert Guidance from EY Bermuda Ltd.

“We understand the importance of staying ahead of the curve in anti-money laundering and anti-terrorist financing,” said LaNishka McSweeney, Partner at EY Cayman Ltd. “Our team is committed to helping financial institutions in Bermuda navigate these complex regulations and maintain compliance.”

For more information on EY’s AML/ATF services offering, please contact:

Chris Maiato, Partner at EY Bermuda Ltd.
Theodore Potgieter, Senior Manager at EY Bermuda Ltd.