BERMUDA’S AML REGULATIONS GET OVERHAUL: BMA ISSUES NEW GUIDANCE NOTES
The Bermuda Monetary Authority (BMA) has released an updated version of its Anti-Money Laundering and Anti-Terrorist Financing Guidance Notes (2023 GN), aimed at strengthening anti-money laundering and terrorist financing compliance in the financial sector.
More Prescriptive Language for Better Compliance
The new guidance notes provide financial institutions with more specific direction on how to comply with regulatory requirements, marking a shift towards more prescriptive language. This change aims to reduce ambiguity and increase the effectiveness of AML/ATF measures by:
- Providing clearer guidelines on customer due diligence procedures
- Emphasizing the importance of adequately qualifying independent auditors
Key Updates in Customer Due Diligence
The updated guidance notes clarify customer due diligence procedures, including:
- The information that must be identified and verified for all customers
- Proof of address is now specifically mentioned as a required piece of information
Simplified Due Diligence (SDD) and Reliance Requirements
The 2023 GN provide more specific guidance on the application of SDD and clarify reliance requirements, including:
- The prohibition on “chain” or “passing on” of reliance involving more than two persons or institutions
- Clear instructions on how to conduct and document exposure to sanctions-related risks
Sanctions Risk Assessment
The updated guidance notes place greater focus on sanctions risk assessment, providing financial institutions with detailed instructions on:
- Conducting a thorough sanctions risk assessment
- Documenting their exposure to sanctions-related risks
Industry Stakeholders Take Note
Industry stakeholders are advised to familiarize themselves with the new guidelines to improve AML/ATF compliance and mitigate financial crime risks. For further information or clarification, industry professionals can contact [insert contact details].