Financial Crime World

Bermuda’s Regulatory Landscape: Enforcing AML/ATF Compliance

Bermuda, an international finance hub, has established robust measures to combat money laundering and terrorism financing. The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorism Financing) Regulations of 2008 outline the various supervisory authorities and reporting obligations that organizations must adhere to in this jurisdiction.

Key Regulatory Authorities in Bermuda

  1. Bermuda Monetary Authority (BMA): The BMA is responsible for overseeing AML/ATF regulated financial organizations and insurers.
  2. Superintendent of Real Estate: This authority regulates brokers and real estate agents.
  3. Authorized professional organizations: These organizations regulate appropriate individuals.
  4. Registrar for High Value Goods Dealers
  5. Bermuda Gaming Commission: This body regulates casino owners.
  6. Financial Intelligence Agency (FIA): The FIA, established under the Financial Intelligence Agency Act of 2007, is responsible for:
    • Receiving and processing Suspicious Activity Reports (SARs) from obliged entities for investigation.

Obligations for Bermuda Entities

To comply with the AML/ATF regulations, Bermuda entities must adhere to the following requirements:

Customer Due Diligence

  • When starting a business relationship, conducting a one-time transaction, suspecting money laundering or terrorism financing, or questioning documents.
  • Identifying and verifying their customers.
  • Examining their business reasons for the transaction.
  • Monitoring transactions throughout the partnership to ensure they align with their understanding, business, and risk profile.
  • Maintaining records of all documents, data, and information gathered during the customer due diligence process.

Reporting Suspicious Activity

  • Reporting suspected money laundering or terrorism financing to the Financial Intelligence Agency via a Suspicious Activity Report is mandatory.

Compliance Officer

  • Designating a compliance officer to ensure adherence to AML/ATF procedures.
  • Coordinating and supervising the compliance program.
  • Maintaining an independent audit function for evaluating the framework’s effectiveness.

Reporting Suspected Money Laundering or Terrorism Financing

When an obliged entity suspects or has reasonable cause to believe that an individual is involved in money laundering or terrorism financing, they must submit an SAR to the Financial Intelligence Agency. The report should contain specific details related to the transaction or suspected activity.