Bermuda Takes Bold Steps to Combat Money Laundering and Terrorist Financing
In an effort to safeguard its financial system from criminal abuse, the Government of Bermuda has introduced stringent requirements for anti-money laundering (AML) and counter-terrorist financing (ATF) controls across various sectors. The implementation of these measures is currently underway in the private sector, with varying levels of awareness and understanding among different institutions.
A National Strategy in Place
Bermuda’s commitment to combating money laundering and terrorist financing is unwavering, and a national strategy and action plan were formally documented in 2016. The strategy has already shown a positive impact and continues to be reviewed and updated regularly. Intelligence agencies and law enforcement are focusing on financial crimes stemming from the financial services sector, while supervisors are prioritizing sectors with prominent vulnerabilities.
Private Sector Must Take Action
It is crucial for private sector entities to review the results of risk assessments and ensure that their AML/ATF activities reflect a risk-based approach. This means identifying and mitigating threats and vulnerabilities specific to each sector. With continued diligence and hard work, Bermuda can continue to demonstrate its international commitment to effectively combating money laundering, terrorist financing, and the financing of proliferation.
Understanding Risk in Context
The Government of Bermuda is dedicated to improving its understanding of money laundering (ML) and terrorist financing (TF) risks in the jurisdiction. However, a country’s exposure to these risks is influenced by its unique context, which must be considered when analyzing these threats. Relevant guidance is provided by the Financial Action Task Force (FATF), which was taken into account during the assessments.
Collaboration and Coordination
Competent authorities have been actively involved in the risk assessment process, working together to analyze and mitigate ML and TF risks. Industry has also played a key role, providing critical input into the process. The results of these assessments are being disseminated to industry through information sessions and written documentation.
Conclusion
This report highlights the findings of Bermuda’s ML and TF risk assessments to date, marking an important step in ensuring that financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) are aware of the relevant threats and vulnerabilities. By working together, Bermuda can continue to strengthen its AML/ATF framework and mitigate the risks posed by money laundering and terrorist financing.
Key Takeaways
- The Government of Bermuda has introduced stringent requirements for AML/ATF controls across various sectors.
- Private sector entities must review risk assessments and ensure a risk-based approach to AML/ATF activities.
- Understanding ML and TF risks in context is crucial, considering the unique circumstances of each jurisdiction.
- Collaboration and coordination between competent authorities and industry are essential for effective risk assessment and mitigation.