Financial Crime World

Mutual Evaluation Report: Bermuda

Overview

This report assesses Bermuda’s compliance with Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Preventing the Financing of Proliferation of Weapons of Mass Destruction (PF) standards.

Money Laundering (ML)

Key Findings

  • National Risk Assessments: Bermuda has completed two ML National Risk Assessments (NRAs) in 2013 and 2017.
  • Sectoral Risks: The banking, securities, trust service provider (TSP), and corporate service provider (CSP) sectors were assessed as having high inherent ML risks.
  • Other Sectors: Long-term direct insurance, money service businesses (MSBs), and the legal profession were assessed as having medium-high inherent ML risks.

Combating the Financing of Terrorism (CFT)

Key Findings

  • Prosecutions and Convictions: There have been no prosecutions or convictions for Terrorist Financing (TF) matters in Bermuda, consistent with its TF risk profile.
  • Investigations: Intelligence and reports of suspected TF are robustly investigated by Bermuda’s law enforcement authorities.
  • National Strategy: A National Combating Terrorist Financing Strategy is in place to reduce the risk of terrorism-related offences.

Risks and General Situation

Key Facts

  • Population and Economy: Bermuda has a population of just over 63,000 people and an internal self-government system. The economy is primarily based on international financial services (catastrophe reinsurance) and tourism.
  • Language and Currency: The official language is English, and the Bermuda dollar is pegged to the US dollar at par.

Compliance and Effectiveness

Key Findings

  • Mutual Evaluation Rounds: Bermuda underwent its 3rd Round Mutual Evaluation in 2008 and has since strengthened its AML/CFT/PF framework.
  • Improvements: Significant improvements have been made to the country’s technical compliance status since the last mutual evaluation exercise in 2008.
  • Limitations: The effectiveness of measures to mitigate risks is limited by the recent implementation of some measures, particularly within the DNFBPs sector.

Conclusion

The report highlights both strengths and weaknesses in Bermuda’s AML/CFT/PF framework, with areas for improvement identified.