Bermuda Strengthens Financial Institution Security Measures

Enhancing Anti-Money Laundering and Combating the Financing of Terrorism Regime

In a move to strengthen the security measures for financial institutions, Bermuda has revised its Guidance Notes for Anti-Money Laundering (AML) and Combating the Financing of Terrorism (ATF) regulated financial institutions. The revisions aim to enhance the country’s anti-money laundering regime and combat terrorist financing.

Key Changes Introduced

The revised guidance notes introduce several key changes aimed at enhancing the security measures for financial institutions in Bermuda:

• New Entities: Insurance marketplace providers and private trust companies are now required to comply with AML/ATF regulations.
• Governing Body Approval: Governing bodies must approve policies, procedures, and controls relating to AML/ATF.
• Due Diligence on Service Providers: Financial institutions must conduct due diligence on service providers, considering a minimum set of criteria when evaluating their suitability. Enhanced due diligence is required for service providers involved in high-risk activities such as correspondent banking, securities and derivatives, insurance, and other high-risk activities.

Additional Requirements

The revised guidance notes also emphasize the importance of:

• Notification of Material Changes: Financial institutions must notify relevant authorities of material changes.
• Customer Information: Institutions must maintain current information regarding customers’ ownership and control structures.
• Verification of Natural Persons: Financial institutions are required to verify the identity of natural persons associated with higher-risk individuals or businesses.

Enforcement and Supervision

The Bermuda Police Service, Financial Intelligence Agency, and Barristers and Accountants AML/ATF Board are responsible for enforcing and supervising compliance with AML/ATF regulations in Bermuda. The revised guidance notes provide additional information on their roles and responsibilities in ensuring the integrity of Bermuda’s financial system.

Commitment to Anti-Money Laundering Regime

These revisions demonstrate Bermuda’s commitment to maintaining a robust anti-money laundering regime and combating terrorist financing, thereby enhancing the security and stability of its financial institutions and promoting confidence in the country’s financial sector.