Financial Crime World

Bermuda Banking Regulations Compliance: Ensuring Highest Standards through International Partnerships

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The Bermuda government has implemented a comprehensive licensing regime for entities engaging in deposit-taking business, as outlined in the Banks and Deposit Companies Act 1999. The Authority has been granted powers to supervise licensed institutions under section 8 of the Act, while section 14 allows it to issue banking, deposit company, or restricted banking licenses.

International Standards and Cooperation

To develop a robust regulatory framework, the Authority turns to international standards issued by the Basel Committee on Banking Supervision. The Authority works closely with the Ministry of Finance to amend legislation in response to evolving business needs. This collaboration ensures that Bermuda’s banking regulations are aligned with global best practices.

Effective Supervision

The Authority’s supervision process involves regular:

  • Off-site visits: Assessing deposit-taking businesses using a risk evaluation model.
  • On-site visits: Routine compliance checks at regulated institutions, including:
    • Reviews of policies, procedures, and processes for managing key business risks.
    • Interviews with management and staff.
    • Review of selected documentation and files.

Institutions deemed high-risk or experiencing increasing risks can expect increased scrutiny from the Authority.

Policy and Guidance Framework

The Authority has established a comprehensive policy and guidance framework for bank and deposit company supervision, including:

  • Final rules on Basel III: Implementing international standards for banking regulation.
  • Annual stress testing updates: Regular assessments of institutions’ ability to withstand economic shocks.
  • Corporate governance policy: Guidelines for institutional management and decision-making.
  • Updated statements of principles: Setting out the Authority’s expectations for regulated entities.

This framework is available on the Authority’s website under the “Policy & Guidance” section.

Additional Resources

For more information on:

  • Legislation documents: [insert link]
  • Discussion papers: [insert link]
  • Policy and guidance papers: [insert link]
  • Reporting forms: [insert link]
  • Guidelines: [insert link]

Please visit [insert website URL] to access these resources.