Financial Crime World

Title: Bermuda Cracks Down on Financial Crime and Terrorism Financing: A Comprehensive Overview

Bermuda’s Proactive Measures against Financial Crimes

Bermuda, a British Overseas Territory in the North Atlantic, is taking steps to combat financial crimes, including money laundering and terrorist financing, within its jurisdiction. In this article, we provide an overview of Bermuda’s current anti-money laundering and counter-terrorist financing (AML/CFT) measures, based on a report published by the Financial Action Task Force (FATF).

FATF Evaluation of Bermuda’s AML/CFT Measures

Between September 24th and October 5th, 2018, the FATF conducted an on-site evaluation of Bermuda’s AML/CFT system. The “Mutual Evaluation Report Bermuda 2020” provides insight into the island’s progress and future improvements.

Significant Advancements

Bermuda has made substantial progress in several key areas, such as:

  • Updating AML/CTF legislation
  • Decreased risk in money laundering and terrorist financing
  • Central Bank of Bermuda supervision of financial institutions

Risk Assessment Improvements

Bermuda has demonstrated progress in risk assessment and regulatory oversight, including:

  • Increased resources dedicated to risk assessment
  • Risk-based approach to supervision
  • Effective offshore sector regulation

Areas for Improvement

Despite the progress, the FATF report recommends several areas for improvement, such as:

  • Enhanced communication between AML/CFT agencies
  • Strengthening international cooperation
  • Transparency and beneficial ownership improvements

Conclusion

Bermuda is dedicated to enhancing its AML/CFT regime based on the findings in the FATF Mutual Evaluation Report. While there are areas for improvement, the report highlights Bermuda’s progress in addressing financial crimes and its commitment to maintaining its reputation as a reputable international financial center.

Here’s a summary of the key aspects of Bermuda’s efforts to combat financial crimes:

  1. Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) Legislation: Bermuda updated its AML/CTF legislation.

  2. Central Bank Supervision: The Central Bank of Bermuda supervises financial institutions, ensuring they follow AML/CFT procedures.

  3. Risk Assessment: Bermuda conducts risk assessments and uses a risk-based approach to supervision.

  4. Regulation of Offshore Sector: The country effectively regulates its offshore sector.

  5. International Cooperation: Bermuda is making efforts to strengthen international cooperation and mutual legal assistance.

  6. Transparency and Beneficial Ownership: The country is making progress in terms of transparency and beneficial ownership.