Financial Crime Definition in Bermuda: A Look at the Island’s Efforts to Combat Money Laundering and Terrorism Funding
Bermuda, a member of the Caribbean Financial Action Task Force (CFATF), has been working closely with international bodies to combat financial crimes such as money laundering and terrorism funding. The island is committed to implementing the standards set by the Financial Action Task Force (FATF), an intergovernmental organization with 170 member countries.
The Proceeds of Crime Act 1997
The Proceeds of Crime Act 1997, which came into effect in January 1998, expanded provisions criminalizing the laundering of proceeds of crime and provided for the confiscation of benefits from criminal conduct. The act also established a Suspicious Activity Reporting regime, requiring financial institutions to disclose knowledge or suspicion of money laundering or terrorist financing to the Financial Intelligence Agency (FIA).
Protection from Civil Liability
The Proceeds of Crime Act 1997 and the Anti-Terrorism (Financial and Other Measures) Act 2004 provide protection from civil liability for individuals who make such disclosures. The requirement to report suspicious activity applies to all persons, including financial institutions and individuals.
National Anti-Money Laundering Committee
To combat money laundering and terrorist financing, Bermuda has established a National Anti-Money Launderling Committee, which advises the Minister of Justice on the detection and prevention of money laundering in the island and its participation in international efforts against the crime. The committee consists of representatives from various government agencies, including:
- Financial Intelligence Agency (FIA)
- Ministry of Finance
- Bermuda Police Service
- Bermuda Monetary Authority (BMA)
Regulation of Financial Services Industry
The BMA is responsible for regulating the financial services industry and has implemented a strict licensing regime to prevent individuals with illicit intentions from establishing corporate structures on the island. The authority also ensures compliance with Bermuda’s anti-money laundering and anti-terrorist financing systems through supervision and inspection of affected financial institutions.
Additional Regulations
In 2008, the Minister of Justice made new regulations under the Proceeds of Crime Act, known as the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008. These regulations provide further guidance on the implementation of anti-money laundering and anti-terrorist financing measures in Bermuda.
Conclusion
Overall, Bermuda’s efforts to combat financial crime demonstrate its commitment to implementing international standards and protecting its financial system from illicit activities.