Financial Crime World

Bermuda’s Money Laundering and Terrorist Financing Risk Assessments: A Review of the Island’s Efforts to Combat Financial Crime

Hamilton, Bermuda - In its latest report on money laundering and terrorist financing risk assessments, Bermuda has highlighted its efforts to identify, assess, and mitigate the risks associated with financial crime.

Geographical Context

Bermuda’s geographical context plays a significant role in its risk assessment. Located in the North Atlantic Ocean, the island is an archipelago of 10 main islands connected by bridges and about 150 additional islets. Its strategic location makes it an attractive hub for international trade and finance.

Political and Judicial Context

Bermuda’s political and judicial context is characterized by a self-governing British Overseas Territory with a parliamentary government. The island has a mature and transparent legal system, reflecting the UK model, which comprises codified legislation and English common law.

Economic Profile

Bermuda’s economy is predominantly based on tourism and international financial services, employing the majority of the workforce directly or indirectly. As at the time of this assessment, the island had four licensed banks, all serving domestic and international clients.

Legislative Framework

The report highlights that Bermuda has a comprehensive suite of legislation to combat money laundering and the financing of terrorism. Key laws include:

  • The Proceeds of Crime Act 1997, which establishes criminal offences for money laundering, sets legal frameworks for confiscating proceeds of crime, and confers investigative powers on the police.
  • Financial institutions are subject to regulatory requirements to prevent money laundering and terrorist financing.

Key Measures

The report notes that financial institutions are required to:

  • File Suspicious Activity Reports (SARs) with the authorities
  • Implement customer due diligence measures

Next Steps

Bermuda will continue to work towards strengthening its anti-money laundering and counter-terrorism financing regime. The island will also focus on improving its risk assessment processes and implementing effective measures to mitigate the risks associated with financial crime.

Key Takeaways

  • Bermuda’s geographical context plays a significant role in its risk assessment
  • The island has a mature and transparent legal system reflecting the UK model
  • Bermuda’s economy is predominantly based on tourism and international financial services
  • The island has a comprehensive suite of legislation to combat money laundering and the financing of terrorism
  • Financial institutions are subject to regulatory requirements to prevent money laundering and terrorist financing

In conclusion, Bermuda’s report on money laundering and terrorist financing risk assessments provides a comprehensive overview of the island’s efforts to combat financial crime. While there is always room for improvement, the report highlights the island’s commitment to identifying, assessing, and mitigating its risks and improving its anti-money laundering and counter-terrorism financing regime.