Financial Crime World

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Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Guidelines for Financial Institutions in Bermuda

International Pressure and Regulations

Governments worldwide have enacted laws to prevent money laundering and terrorist financing. The Financial Action Task Force (FATF) has issued recommendations on money laundering and terrorist financing, while the Basel Committee, IAIS, and IOSCO also provide guidance on AML/ATF procedures.

  • Key international frameworks:
    • FATF Recommendations
    • Basel Committee Guidance
    • IAIS Guidance
    • IOSCO Guidance

Bermuda has established a comprehensive legal and regulatory framework to combat money laundering and terrorist financing. Key legislation includes the Proceeds of Crime Act 1997, Anti-Terrorism (Financial and Other Measures) Act 2004, and other related regulations.

  • Key legislation:
    • Proceeds of Crime Act 1997
    • Anti-Terrorism (Financial and Other Measures) Act 2004
    • Related regulations

Risk-Based Approach

Institutions are expected to adopt a risk-based approach to AML/ATF, considering the level of risk associated with their customers and transactions. Senior management must be fully engaged in decision-making processes and take ownership of the risk-based approach.

  • Key principles:
    • Identify and assess risks
    • Implement controls to mitigate risks
    • Monitor and review risk-based approach

BMA’s Objectives

The Bermuda Monetary Authority (BMA) is responsible for monitoring AML/ATF regulated financial institutions for full compliance with Bermuda’s framework. The BMA aims to assist with detecting and preventing financial crime, deter and disrupt criminal and terrorist activity.

  • Key objectives:
    • Monitor institutional compliance
    • Assist in detecting and preventing financial crime
    • Deter and disrupt criminal and terrorist activity