Financial Crime World

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Bermuda Strengthens Anti-Money Laundering Regulations

Bermuda has taken significant steps to combat financial crime by issuing new guidance to help financial institutions comply with anti-money laundering (AML) and anti-terrorist financing (ATF) regulations.

New Guidance Notes for Financial Institutions

The Bermuda Monetary Authority (BMA) has approved general and sector-specific AML/ATF guidance notes in collaboration with the Minister of Finance. These guidance notes provide clarity on how regulated entities can comply with the Proceeds of Crime Act and Regulations.

Key Requirements

  • Risk assessment: Financial institutions must conduct thorough risk assessments to identify potential money laundering or terrorist financing risks.
  • Customer due diligence: Institutions must verify the identity of customers and maintain accurate records of customer transactions.
  • Reporting suspicious transactions: Financial institutions are required to report any suspicious transactions to the BMA.

Ministerial Advisories on High-Risk Jurisdictions

The Minister of Finance has issued ministerial advisories on money laundering and terrorist financing controls in high-risk jurisdictions. These advisories provide guidance on enhanced due diligence requirements for financial institutions operating in countries with higher levels of financial crime risk.

Enhanced Due Diligence Requirements

  • Financial institutions must conduct additional customer due diligence when dealing with customers from high-risk jurisdictions.
  • Institutions must monitor customer transactions more closely and report any suspicious activity to the BMA.

Strengthening Bermuda’s AML/ATF Framework

The updates come as part of a broader effort to strengthen Bermuda’s AML/ATF framework and prevent the island nation from being used as a conduit for illicit finance. The BMA has committed to working closely with regulated entities to ensure compliance with anti-money laundering regulations.

Key Documents

  • General Guidance Notes for AML/ATF Regulated Entities (Revised) - June 12, 2023
  • Sector-Specific Guidance Notes for Trust Business - February 14, 2023
  • Ministerial Advisory on Money Laundering and Terrorist Financing in High-Risk Jurisdictions - April 2, 2024

Archived Documents

  • AML/ATF Ministerial Advisory 1 2024 - April 2, 2024
  • AML/ATF Ministerial Advisory 3 2023 - November 17, 2023