Financial Crime World

Here is the article in markdown format:

Bank Resolution Regime in Bermuda

Bermuda banks have various measures in place designed to protect depositors’ assets. Here are some key points regarding the bank resolution regime in Bermuda:

Asset Protection for Clients

  • Bermudian banks maintain adequate liquidity to ensure deposits are secure.
  • Licenses are restricted and deposits are not accepted unless from approved sources.

Bail-In Tool in Bank Resolution

  • No, Bermuda has not implemented a bail-in tool in its banking resolution regime.

Regulatory Capital Requirements

  • Yes, the BMA adopts CET1 as the primary and predominant form of regulatory capital.
  • Additional Tier 1 and Tier 2 capital are also allowed, subject to specific criteria.

Key Developments

  • Inception of a digital asset business regulatory regime
  • Increased focus on information security and cyber risk management
  • Formation of a Fintech regulatory regime
  • BMA’s adoption of the Basel III regulatory minimum capital levels

Biggest Threats to the Financial Sector in Bermuda

Challenges Facing the Sector

  • Meeting the challenges created by innovative digitalization and data processing technology affecting the sector
  • Dealing with new challenges due to the COVID-19 pandemic, including its effect on tourism and knock-on effect on the financial sector