Financial Crime World

Bermuda’s Financial Compliance Laws: A Comprehensive Overview

From Anti-Money Laundering to Trust Business Regulations

Bermuda, the British Overseas Territory in the North Atlantic, maintains a prominent position in the international finance world. His article provides an in-depth analysis of the various financial compliance laws that rule the territory.

AML/ATF Regulations

Bermuda’s commitment to combating financial crimes is based on several key laws, including:

  • The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Designation Order 2012
  • The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008
  • The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008
  • The Anti-Terrorism (Financial and Other Measures Businesses in Regulated Sector) Order 2008
  • The Financial Intelligence Agency Act 2007
  • The Anti-Terrorism Financial and Other Measures Act 2004
  • The Proceeds of Crime (Designated Countries and Territories) Order 1998
  • The Proceeds of Crime Act 1997

These regulations ensure the effective implementation of AML and ATF procedures and regulations, and serve to protect the island’s standing as a respected and compliant international financial center.

Banking

Bermuda’s banking sector abides by the following laws and regulations:

  • The Banks and Deposit Companies Act 1999
  • The Bermuda Monetary Authority (Financial Institutions) (Control Regulations) 1994
  • The Banks and Deposit Companies (Exemption) Order 1999
  • The Banks and Deposit Companies Fees Act 1975
  • The Banks and Deposit Companies (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006

These regulations establish a solid foundation for maintaining a stable and responsible banking sector, ensuring financial security for both local residents and international clients.

BMA Act

The Bermuda Monetary Authority (BMA) plays a significant role in Bermuda’s financial regulatory landscape. The following laws apply to the BMA:

  • The Bermuda Monetary Authority Amendment No. 3 Act 2018
  • The Bermuda Monetary Authority Act 1969
  • The Bermuda Monetary Authority Financial Institutions Control Regulations 1994

The BMA is tasked with overseeing the supervision and regulation of various financial institutions to ensure the stability and soundness of Bermuda’s financial sector.

Credit Unions

Credit unions in Bermuda operate under the following laws:

  • The Credit Unions Act 2010

These regulations provide the framework for the effective operation and stability of the credit union sector in Bermuda.

Companies

The following laws establish the framework for the registration, operation, and winding-up of companies in Bermuda:

  • The Segregated Accounts Companies Act 2000
  • The Companies Act 1981
  • The Companies (Winding-Up) Rules 1982
  • The Exchange Control Regulations 1973
  • The Exchange Control Act 1972

Corporate Service Providers

Corporate service providers in Bermuda are subject to the following regulations:

  • The Corporate Service Provider Business Regulations 2017
  • The Corporate Service Provider Business Exemption Order 2015
  • The Corporate Service Provider Business Amendment Act 2014
  • The Corporate Service Provider Business Appeal Tribunal Regulations 2013
  • The Corporate Service Provider Business Act 2012

These regulations promote transparency and accountability within the corporate service provider sector, fostering ethical business practices.

Digital Asset Business

Bermuda’s digital asset business sector operates under the following laws:

  • The Digital Asset Business Act 2018
  • The Digital Asset Business (Prudential Standards) (Annual Return) Rules 2018
  • The Digital Asset Business Cyber Risk Rules 2023
  • The Digital Asset Business Cybersecurity Rules 2018
  • The Digital Asset Business Client Disclosure Rules 2018

These regulations serve to facilitate the responsible and secure development and operation of digital asset businesses on the island.

Digital Asset Issuance

Bermuda’s regulations for digital asset issuance include:

  • The Digital Asset Issuance Act 2020
  • The Digital Asset Issuance Rules 2020

These regulations create a legal framework for the issuance and offer of digital assets, providing both issuers and potential investors with a clear and robust regulatory environment.

Fund Administration

Fund administration in Bermuda is governed by the following laws:

  • The Fund Administration Provider Business Act 2019
  • The Bermuda Monetary Authority Financial Institutions Control Regulations 1994

These regulations promote the effective and transparent operation of fund administration providers on the island.

Insurance

Bermuda’s insurance sector is governed by a variety of laws and regulations:

  • The Non-Resident Insurance Undertakings Act 1967
  • The Insurance Act 1978
  • The Life Insurance Act 1978
  • The Insurance Accounts Regulations 1980
  • The Insurance Returns and Solvency Regulations 1980

These regulations ensure the stability and soundness of the island’s insurance sector, offering protection and peace of mind to both local and international clients.

Investment Business

Investment business in Bermuda is subject to the following laws:

  • The Investment Business (Class B Registered) Persons Order 2022
  • The Investment Business (Non-Registrable Persons) (Designation) Order 2022
  • The Investment Business (Client Money) Regulations 2004
  • The Investment Business (Prudential Standards) (Standard Licences, Test Licences and Class A Registered Persons) (Capital, Net Assets) and (Liquidity) Rules 2022
  • The Investment Business (Prudential Standards) (Statutory Returns) Rules 2022
  • The Investment Business (Reporting Accountants) (Facts and Matters of Material Significance) Regulations 2006
  • The Investment Business Appeal Tribunal Regulations 2004
  • The Investment Business Regulations 2004
  • The Investment Business Act 2003
  • The Bermuda Monetary Authority Financial Institutions Control Regulations 1994

These regulations create a solid foundation for the responsible and transparent operation of investment businesses in Bermuda.