Bermuda Takes Steps to Prevent Money Laundering: Introduces Stringent Regulations for Financial Institutions

Background

On January 30th, 1998, the Proceeds of Crime (Money Laundering) Regulations 1998 came into effect in Bermuda, aiming to curb money laundering activities on the island. The regulations established an anti-money laundering framework for financial institutions operating in Bermuda.

Evolution of Regulations

Fast forward to January 1st, 2009, when the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 superseded the earlier regulations. These new rules impose a comprehensive range of obligations on affected financial institutions, including:

• Customer due diligence
• Record keeping
• Staff training
• Internal reporting procedures

Support for Regulated Financial Institutions

To aid regulated financial institutions in complying with the provisions of the Proceeds of Crime Act and Regulations, the Bermuda Monetary Authority has issued:

• Guidance Notes: Published with the approval of the Minister, these notes provide guidance on implementing anti-money laundering measures.
• Statement of Principles: Outlining the Authority’s approach to exercising powers created by the Supervision Act.

Accessing Guidance Materials

Copies of the Guidance Notes and Statement of Principles are available on the Bermuda Monetary Authority’s website under:

Policy and Guidance > AML/ATF

These resources can be accessed by financial institutions and stakeholders for review and compliance purposes.