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Bermuda Steps Up Efforts to Combat Money Laundering and Terrorist Financing
Hamilton, Bermuda - In a bid to safeguard its financial system from criminal activities, the Government of Bermuda has implemented extensive requirements for controls across various sectors. The private sector is at different stages in implementing these controls, with financial institutions that have been subject to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) obligations for an extended period having a greater awareness and understanding of AML matters.
Key Action Items Prioritized
To ensure the continued effectiveness of Bermuda’s AML/CFT framework, key action items have been given high priority. These include:
- Legislative changes
- Institutional changes
- Operational changes
These changes have already been implemented and are ongoing. The national strategy and action plan, formally documented in 2016, has shown a positive impact and continues to be reviewed and updated.
Risk Assessments and Focus
The results of risk assessments continue to be incorporated into the ever-evolving plan. Government and key non-government institutions are also assessing the results of their work and updating their action plans accordingly. This means that:
- Intelligence and law enforcement should focus on financial crimes stemming from the financial services sector
- Supervisors should focus on sectors and entities with the most prominent vulnerabilities
Private Sector Urged to Review Risk Assessments
The private sector is urged to review the results of these risk assessments and ensure that their AML/CFT activities appropriately reflect the required risk-based approach. AML/CFT efforts should be focused on those threats and vulnerabilities that are most relevant to each sector.
International Commitment
With continued diligence and hard work, Bermuda can continue its international commitment to effectively combat money laundering, terrorist financing, and the financing of proliferation.
Government’s Commitment to Understanding ML/TF Risk
The Government of Bermuda is committed to continually improving its understanding of ML/TF risk in Bermuda. The government also strives to strengthen and improve Bermuda’s AML/CFT framework and design policies and strategies to effectively mitigate risks.
Contextual Considerations
Bermuda’s exposure to, and ability to combat, ML/TF are framed by the unique context of the jurisdiction, which must be considered when analyzing these risks. Relevant requirements in this regard are provided by the Financial Action Task Force (FATF) in relation to these matters, which were taken into account in these assessments.
Collaborative Effort
Competent and supervisory authorities have been actively involved in the assessments that are the subject of this report, and have carried out the required analysis in a coordinated and collaborative way. This has enabled them to further their knowledge and understanding of Bermuda’s ML/TF risks and have the relevant information required to play their part in further strengthening our regime and ensuring that appropriate risk-based programs are being effectively implemented.
Industry Input
Industry has also played a key role in these assessments, providing critical input into the process. In relation to dissemination of the results to industry, information sessions have been held by the relevant supervisory authorities and written documentation provided on the relevant threats and vulnerabilities.