Financial Crime World

Title: Bermuda’s Commitment to Combating Financial Crimes: Proactive Measures and International Standards

Bermuda, a member of the Caribbean Financial Action Task Force (CFATF), is committed to preventing money laundering and financing terrorism in line with the international standards set by the Financial Action Task Force (FATF). With 170 member countries, FATF sets global benchmarks to combat financial crimes.

Proactive Implementation of Regulations

In 1998, The Proceeds of Crime Act (POCA) Act came into effect, giving teeth to Bermuda’s laws against money laundering, introducing asset confiscation for criminally derived benefits, and establishing a reporting regime for money laundering and terrorist financing suspicions. This makes it mandatory for all persons to report.

  • POCA Act came into effect on January 17, 1998
  • Added teeth to anti-money laundering laws
  • Established reporting regime

Whistleblower Protection: Failure to report suspicion or knowledge is an offense, but those reporting are protected from civil liability, creating an environment that doesn’t tolerate financial crimes.

Key Advisory Bodies: National Anti-Money Laundering Committee (NAMLC)

  • NAMLC’s Role: The National Anti-Money Laundering Committee (NAMLC), a key advisory body, helps Minister of Justice combat money laundering in Bermuda and facilitates international cooperation.
  • Members: Includes senior government officials, law enforcement, and other stakeholders.

Powers of the Minister of Justice

The Minister, in consultation with NAMLC, has the power to make regulations to enhance Bermuda’s ability to detect and prevent money laundering.

Robust Financial Regulation: Bermuda Monetary Authority (BMA)

  • BMA’s Role: Bermuda’s financial regulator, the Bermuda Monetary Authority (BMA), regulates the financial sector and maintains a robust licensing regime.
  • Protecting the Financial Services Industry: The BMA enforces comprehensive Anti-Money Laundering (AML) systems and controls to protect the integrity of Bermuda’s financial services industry and safeguard the global financial system from risks associated with financial crimes.

Necessary Mechanisms: Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008

This act provides the BMA with the necessary mechanisms to ensure AML controls are effectively implemented by licensed entities.