Financial Crime World

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Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) Guidance Notes for Regulated Financial Institutions in Bermuda

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These guidance notes have been issued by the Bermuda Monetary Authority (BMA) to provide a comprehensive framework for regulated financial institutions (RFIs) in Bermuda to prevent money laundering and terrorist financing.

International Framework

The BMA’s guidance notes refer to various international guidelines and standards, including those from:

  • The Financial Action Task Force (FATF)
  • The International Association of Insurance Supervisors (IAIS)
  • The Wolfsberg AML Principles

RFIs are expected to be aware of their obligations under the laws and regulations of other jurisdictions where they operate.

Key Obligations

  • Be aware of their obligations under the laws and regulations of other jurisdictions where they operate.

Regulatory Priorities

The BMA has three key objectives in combating money laundering and terrorist financing:

Effectiveness

  • Maximizing the impact of AML/ATF measures on criminality and terrorism.

Proportionality

  • Ensuring that the benefits of intervention outweigh the costs.

Engagement

  • Collaborating with stakeholders to share data and engage internationally.

RFIs are legally required to put in place effective measures to minimize the risk of involvement with the proceeds of crime or terrorist property. Senior management is responsible for ensuring compliance with AML/ATF regulations and guidelines.

Key Obligations

  • Put in place effective measures to minimize the risk of involvement with the proceeds of crime or terrorist property.
  • Ensure that senior management is responsible for ensuring compliance with AML/ATF regulations and guidelines.

Guidance Notes Coverage

The guidance notes cover various aspects, including:

Risk Management

  • Identifying, assessing, and mitigating AML/ATF risks

Customer Due Diligence

  • Conducting customer due diligence to verify the identity of customers and beneficial owners

Monitoring and Reporting Suspicious Transactions

  • Monitoring transactions for suspicious activity and reporting them to the relevant authorities

Record-Keeping and Documentation

  • Maintaining accurate and complete records of AML/ATF-related activities

Training and Awareness Programs

  • Providing training and awareness programs for employees on AML/ATF regulations and guidelines

Compliance with International Guidelines and Standards

  • Ensuring compliance with international guidelines and standards, including those from the FATF, IAIS, and Wolfsberg AML Principles.

Overall, these guidance notes provide a comprehensive framework for RFIs in Bermuda to comply with AML/ATF regulations and best practices, ultimately contributing to the prevention of money laundering and terrorist financing.