Bermuda’s Financial Institutions Show Strong Efforts to Combat Money Laundering and Terrorist Financing

Introduction

A recent report by the Financial Action Task Force (FATF) has highlighted the significant progress made by Bermuda’s financial institutions in combating money laundering (ML) and terrorist financing (TF).

Stronger AML/CFT Framework

According to the Mutual Evaluation Report, released by the FATF, Bermuda’s financial sector has taken substantial steps to enhance its Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) framework. The report noted that Bermuda’s economy is primarily driven by international financial services, particularly catastrophe reinsurance, and tourism, making it vulnerable to ML risks.

National Risk Assessments

The report praised Bermuda for undergoing three national risk assessments (NRAs) to identify, assess, and understand its ML and TF risks. The National Anti-Money Laundering Committee (NAMLC) has been instrumental in leading these efforts, working closely with various groups to coordinate activities.

Limitations and Challenges

While the report acknowledged some limitations in the effectiveness of measures to mitigate risks, particularly within the designated non-financial businesses and professions (DNFBPs) sector, it noted that factors existed before the implementation of new measures to mitigate inherent risks.

Monitoring Targeted Financial Sanctions Compliance

The report also highlighted Bermuda’s efforts to monitor targeted financial sanctions compliance and awareness among financial institutions and DNFBPs regarding their obligations to screen against designated person lists.

Commitment to Combating ML/TF

Bermuda’s Prime Minister, David Burt, welcomed the report’s findings, saying that it demonstrates the country’s commitment to combating ML and TF. “We are pleased with the progress we have made and will continue to work towards strengthening our AML/CFT framework,” he said.

About Bermuda

Bermuda is the United Kingdom’s oldest overseas dependent territory, with a population of around 63,000 people. It is an archipelago of 150 islands in the Atlantic Ocean, about 570 miles east-southeast of the mid-Atlantic region of the United States. The country’s economy is based primarily on international financial services and tourism.

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