Financial Crime World

Bermuda’s AML Regulations: Ensuring Financial Integrity and Strengthening the Fight Against Money Laundering and Terrorist Financing

Since January 1998, Bermuda has implemented a robust anti-money laundering (AML) framework to protect its financial system from the threats of money laundering and terrorist financing.

A Brief History of Bermuda’s AML Regulations

  • The Proceeds of Crime (Money Laundering) Regulations 1998 introduced AML obligations for regulated institutions, including banks, trust companies, insurance entities, collective investment schemes, and trading members of the Bermuda Stock Exchange.
  • In January 2009, the regulations were replaced by the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008, which significantly enhanced AML/ATF obligations for regulated financial institutions.

Enhancing Compliance with AML/ATF Regulations

To support compliance with AML/ATF regulations, the Bermuda Monetary Authority has issued:

  • General Guidance Notes: Providing clear instructions on how to meet AML/ATF obligations and ensure that regulated institutions are equipped to identify and mitigate risks.
  • Sector-specific Guidance Notes: Issued for various industries, including trust business, corporate service providers, money service businesses, and securities.

Authority’s Approach to Enforcement

The Bermuda Monetary Authority has also published:

  • Statements of Principles: Outlining its approach to exercising powers under the Supervision Act.
  • Enforcement Guides: Providing guidance on enforcement procedures.

Recent Developments in Bermuda’s AML Landscape

Recent Ministerial Advisories issued in 2024, 2023, and 2022 address various aspects of money laundering and terrorist financing. These advisories aim to maintain a strong deterrent against financial crime and ensure that regulated institutions remain vigilant in their AML/ATF efforts.

Conclusion

By implementing robust AML regulations and providing guidance to regulated institutions, Bermuda has demonstrated its commitment to maintaining a secure and trustworthy financial system, which is essential for the island’s economic stability and reputation.