Financial Crime World

Bermuda Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Regulations

Key Definitions

In Bermuda, the following definitions are crucial in understanding AML/ATF regulations:

  • Financial Institutions: Banks, investment businesses, insurers, insurance managers or brokers, fund administrators, money service businesses, and trust business operators.
  • Independent Professionals: Professional legal advisers or accountants providing services that involve financial or real property transactions.

Primary Offenses

The following are the primary offenses related to AML/ATF in Bermuda:

  1. Concealing or transferring the proceeds of criminal conduct
  2. Assisting another to retain the proceeds of criminal conduct
  3. Acquisition, possession, or use of the proceeds of criminal conduct
  4. Failure to disclose knowledge or suspicion of money laundering
  5. Tipping off

Predicate Offenses

The following offenses are considered predicate offenses for AML/ATF in Bermuda:

  • Criminal Conduct: Includes drug trafficking and any relevant offense (defined as an indictable offense in Bermuda other than a drug trafficking offense).
  • Tax Evasion: Considered a predicate offense, as it can give rise to a money laundering offense.

Reporting Requirements

The following reporting requirements apply to AML/ATF in Bermuda:

  • Financial Institutions: Must report suspicious transactions to the Bermuda Monetary Authority.
  • Independent Professionals: Must also report suspicious transactions when participating in financial or real property transactions.

Penalties

Offenses related to AML/ATF in Bermuda can result in:

  • Imprisonment (up to 20 years)
  • An unlimited fine

Statutes and Compendium

The Conyers Dill & Pearman website offers a compendium of Bermuda AML/CTF legislation, including key legislation, related statutes, statutory instruments, rules, and appointments. This resource is available for reference.

Note: This summary is not intended to be comprehensive or substitute for specific legal advice. If you require further information or clarification, it’s best to consult with a qualified attorney or regulatory expert.