Bermuda’s Anti-Money Laundering and Combating the Financing of Terrorism Efforts Under Scrutiny
Assessment Reveals Lack of Significant Reforms Since 1998
A team of international experts, led by Manue l Vasquez from the International Monetary Fund (IMF), has completed an assessment of Bermuda’s anti-money laundering (AML) and combating the financing of terrorism (CFT) efforts. The evaluation found that while the AML/CFT framework is generally comprehensive, it has not kept pace with changes in international standards since 1998.
Weaknesses Identified
The team identified several weaknesses in Bermuda’s system, including:
- Limited implementation of risk-based approaches to controls
- Lack of sufficient reforms to address these issues
- Concerns over the lack of prosecutions for money laundering and terrorist financing
- Limited investigations and suspicious activity reports (SARs) filed
Legal Framework Concerns
The report also raised concerns over the legal framework for investigation and prosecution of money laundering, citing:
- Staffing and budgetary constraints in the office of the Director of Public Prosecutions (DPP)
- Financial Intelligence Unit (FIU)
Recommendations to Strengthen AML/CFT Regime
To strengthen Bermuda’s AML/CFT regime, the team made several recommendations, including:
- Implementing new draft guidelines and regulations
- Improving the risk-based approach to controls
- Enhancing the legal framework for investigation and prosecution of money laundering and terrorist financing
Report Presented to Caribbean Financial Action Task Force (CFATF)
The report was presented to the CFATF and endorsed at their ministerial meeting in November 2007. The assessment is part of the IMF’s Offshore Financial Center Assessment Program (OFC), which aims to evaluate the AML/CFT efforts of offshore financial centers around the world.
Acknowledgement
The assessors expressed gratitude to the Bermudian authorities and institutions for their cooperation and assistance throughout the assessment mission.