Financial Crime World

Bermuda Cracks Down on Money Laundering and Terrorist Financing: Proposed Legislations and Training Initiatives

Call to Action from The National Anti-Money Laundering Committee (NAMLC)

The National Anti-Money Laundering Committee (NAMLC) has issued a call to action for Bermudian ministers of Finance and Legal Affairs and Constitutional Reform. The committee is responsible for advising the Bermudian government on the detection, prevention, and combatting of money laundering, terrorist financing, and weapons proliferation in Bermuda.

National Risk Assessments

NAMLC led Bermuda in conducting national risk assessments in:

  • 2013
  • 2016
  • 2017
  • 2020

These assessments have identified Bermuda’s vulnerabilities to money laundering, terrorist financing, and proliferation financing. You can find the latest results of these assessments on the NAMLC website.

Proposed AML/ATF Legislative Initiatives

As per the Proposed AML/ATF Legislative Initiatives Consultation Paper released in November 2021, the Bermuda Government intends to enhance its AML and ATF legislative framework. The paper outlines proposed changes for the upcoming session of Parliament, open for feedback and comments by November 30, 2021.

Understanding Money Laundering and Terrorist Financing

  • Money laundering: The process of concealing illegitimate funds by making them appear legitimate, often through a series of financial transactions designed to hide criminal origins.
  • Terrorist financing: Similar in technique to money laundering, terrorist financing supports terrorism or those who plan or engage in it, by hiding the ultimate use of funds.

Criminalizing Money Laundering, Terrorist Financing, and Proliferation Financing

Bermuda criminalizes both money laundering and terrorist financing through various legislations:

  • Proceeds of Crime Act 1997: Sections 43-45.
  • Anti-Terrorism (Financial and other Measures) Act 2004: Section 8.
  • Criminal Code: Sections 32, 33, and 230.

Combating Proliferation Financing

The committee also stressed the importance of combating proliferation financing, which refers to providing financial support for the production, acquisition, possession, development, export, transport, transfer, or stockpiling of nuclear, chemical, or biological weapons.

Reporting Suspicions and Training

If there are suspicions of money laundering or terrorist financing, reporting them to the Financial Intelligence Agency (FIA) is mandatory. The FIA provides training to assist in the identification of suspicious activity and filing of suspicious activity reports.

To report suspicious activity or schedule training, contact the FIA at info@fia.bm or call (441) 292-3422.

Roles of International Organizations

International organizations such as the Financial Action Task Force (FATF), the Caribbean Financial Action Task Force (CFATF), and the International Monetary Fund (IMF) play essential roles in the global fight against money laundering, terrorist financing, and proliferation financing. These organizations help countries develop more effective systems to prevent and combat these crimes across borders.