Financial Crime World

Title: Bermuda’s Fight Against Money Laundering and Terrorist Financing: AML/ATF Regulations and Guidance Notes

Establishing an Anti-Money Laundering Framework (1998-2008)

In January 1998, Bermuda’s financial sector took a significant step towards combating money laundering and terrorist financing with the implementation of the Proceeds of Crime (Money Laundering) Regulations 1998. This legislation established an anti-money laundering (AML) framework for financial institutions, including banks, trust companies, insurance entities, collective investment schemes, and the Bermuda Stock Exchange.

Strengthening AML/ATF Regulations (2008)

Starting January 1, 2009, the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 were introduced, enhancing Bermuda’s efforts to combat money laundering and terrorist financing. These regulations imposed stricter obligations on AML/ATF-regulated financial institutions. They focused on:

  • Customer due diligence
  • Record-keeping
  • Systems and controls
  • Staff training
  • Internal reporting procedures
  • Appointment of a reporting officer

BMA’s Guidance and Advisories

To support AML/ATF-regulated financial institutions, the Bermuda Monetary Authority (BMA) has issued various Guidance Notes and Ministerial Advisories. Some of the most recent include:

  1. AML-ATF Ministerial Advisory 1 2024: Money Laundering and Terrorist Financing (April 2, 2024)
  2. AML-ATF Ministerial Advisory 3 2023: Money Laundering and Terrorist Financing (November 17, 2023)
  3. AML-ATF Ministerial Advisory 2 2023: Money Laundering and Terrorist Financing (July 7, 2023)
  4. General Guidance Notes for AML/ATF Regulated Entities (Revised): June 12, 2023

The BMA also provided sector-specific guidance in areas like trust business, corporate service providers, money service businesses, and the securities sector.

Ongoing Commitment and Regular Updates

In its continuous effort to fight financial crime, the BMA regularly updates and revises its Guidance Notes and Ministerial Advisories to adapt to the evolving landscape and regulatory obligations. This proactive approach maintains Bermuda’s reputation as a reputable and well-regulated financial hub.