Financial Crime World

Bermuda Tightens Grip on Anti-Money Laundering Laws

The Government of Bermuda has taken significant steps to strengthen its anti-money laundering (AML) and counter-terrorism financing (ATF) regulations, imposing a detailed set of obligations on financial institutions to prevent illegal activities.

AML/ATF Regulations: A Brief Overview

Since 1998, the Proceeds of Crime (Money Laundering) Regulations have been in effect, requiring institutions such as banks, trust companies, insurance entities, and trading members of the Bermuda Stock Exchange to implement AML/ATF measures. However, a major overhaul came into effect on January 1, 2009, with the introduction of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations.

Key Obligations for Financial Institutions

These regulations impose strict obligations on financial institutions to:

  • Conduct customer due diligence
  • Maintain accurate records
  • Train staff in AML/ATF procedures
  • Have internal reporting procedures in place, including the appointment of a reporting officer

Guidance and Support for Regulated Entities

To assist regulated entities in complying with these requirements, the Bermuda Monetary Authority has issued:

  • General guidance notes approved by the Minister
  • Sector-specific guidance notes (published for trust business, corporate service providers, money service businesses, and the securities sector)
  • A statement of principles outlining how it will exercise its powers under the Supervision Act

Recent Updates and Highlights

Recent updates to AML/ATF regulations include ministerial advisories issued throughout 2024, highlighting the importance of monitoring money laundering and terrorist financing controls in higher-risk jurisdictions.

Goals and Objectives

The government’s efforts aim to:

  • Ensure Bermuda remains a transparent and secure financial hub
  • Protect its reputation as a leading offshore center

By strengthening its AML/ATF regulations, Bermuda demonstrates its commitment to maintaining a robust financial system that is both effective and efficient.