Financial Crime World

AML/ATF Framework in Bermuda Labeled “Inadequate” by Experts

A Scathing Review of Bermuda’s Anti-Money Laundering and Anti-Terrorist Financing Framework

Experts have deemed the AML/ATF (Anti-Money Laundering and Anti-Terrorist Financing) framework in Bermuda as inadequate, citing its outdated, ineffective, and unclear guidelines. The framework is designed to prevent money laundering and terrorist financing, but it has been criticized for being overly complex and lacking clear guidelines on how to implement anti-money laundering and anti-terrorist financing measures.

A Patchwork of Legislation

The AML/ATF framework in Bermuda relies heavily on a patchwork of legislation dating back to the 19th century, including:

  • The Revenue Act 1898
  • The Criminal Code Act 1907
  • The Proceeds of Crime Act 1997
  • The Anti-Terrorism (Financial and Other Measures) Act 2004

These outdated laws have been criticized for not adequately addressing the risks posed by new technologies such as cryptocurrencies and online transactions.

Complex and Lacking Clear Guidelines

Experts argue that the AML/ATF framework is overly complex, making it difficult to implement anti-money laundering and anti-terrorist financing measures effectively. Additionally, there are no clear guidelines on how to address the risks posed by new technologies.

Criticism of the Bermuda Monetary Authority (BMA)

The BMA has been criticized for its lack of transparency and accountability in enforcing the AML/ATF framework. Experts argue that:

  • The BMA lacks resources and inadequate training for staff
  • The BMA’s regulatory approach is based on outdated principles and does not take into account new risks and threats

Calls for a Comprehensive Overhaul

Experts are calling for a comprehensive overhaul of the AML/ATF framework in Bermuda, including:

  • Development of clear guidelines and training programs for financial institutions and regulators
  • A more proactive approach to enforcing the framework and addressing the risks posed by new technologies

Global Implications

The issue of an inadequate AML/ATF framework in Bermuda is not just a local concern but has implications for the global financial system as a whole. It highlights the need for countries to work together to develop effective anti-money laundering and anti-terrorist financing measures that can address the evolving threats faced by the financial sector.

Conclusion

The AML/ATF framework in Bermuda has serious consequences for the island’s financial sector and economy, increasing the risk of money laundering and terrorist financing. It is imperative that a comprehensive overhaul of the framework is implemented to address these concerns and ensure the stability of the global financial system.