Financial Crime World

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BERMUDA REPORT: 2020 MONEY LAUNDERING AND TERRORIST FINANCING RISK ASSESSMENTS

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Geographical Context

Bermuda is an archipelago of 10 main islands located in the North Atlantic Ocean, approximately 570 nautical miles southeast of North Carolina, USA. With direct airline service to key international destinations, Bermuda is a popular tourist and financial hub.

Political and Judicial Context

As a self-governing British Overseas Territory, Bermuda has a parliamentary government with a head of state represented by the Governor. The country’s legal system is mature and transparent, reflecting the UK model.

Economic and Social Context

Bermuda’s economy is primarily driven by tourism and international financial services, employing the majority of the workforce directly or indirectly. The country has:

  • Four licensed banks
  • A corporate registry with over 16,000 registered entities
  • Approximately 1,300 AML/ATF regulated Financial Institutions

Legislative Framework

Bermuda has a comprehensive suite of legislation to combat money laundering and terrorist financing, including:

Proceeds of Crime Act 1997

Establishes criminal offences and confers investigative powers on the police.

Regulations

Imposing requirements on specified Financial Institutions and Designated Non-Financial Businesses and Professions.

Risk Assessment

The report highlights several areas of concern:

  • The lack of a formal national risk assessment framework
  • Inadequate implementation of customer due diligence measures by Financial Institutions
  • Limited information sharing between Financial Institutions and law enforcement agencies
  • Insufficient resources dedicated to AML/ATF compliance

Recommendations

To address these concerns, the report recommends:

  • Developing a formal national risk assessment framework
  • Enhancing customer due diligence measures by Financial Institutions
  • Improving information sharing between Financial Institutions and law enforcement agencies
  • Increasing resources dedicated to AML/ATF compliance

The report serves as a valuable resource for financial institutions, law enforcement agencies, and regulatory bodies seeking to combat money laundering and terrorist financing threats in Bermuda.