BERMUDA FINANCIAL INSTITUTION RISK ASSESSMENT: PROGRESS MADE, BUT FULL ROLLOUT NEEDED

October 16, 2008

Bermuda Financial Sector Supervision and Regulation Under Review

A new report has assessed the financial sector supervision and regulation in Bermuda, highlighting significant progress made by the Bermudian authorities in developing and implementing a risk-focused approach to supervision. However, for comprehensive oversight of the market, full rollout of the risk-based regulatory system to all market segments is still required.

Progress Made in Risk-Based Supervision

The banking department’s restructuring is underway to support the introduction of a formal risk-based supervisory system, marking a significant step forward in Bermuda’s efforts to strengthen its financial sector oversight. The report notes that while progress has been made, there remains room for improvement in ensuring comprehensive coverage of all market participants.

Key Takeaways

• Bermuda’s authorities have made significant progress in developing and implementing a risk-focused approach to supervision.
• Full rollout of the risk-based regulatory system is still required to ensure comprehensive oversight of all market segments.
• The banking department’s restructuring is underway to support the introduction of a formal risk-based supervisory system.

Implications for Industry Stakeholders

The assessment comes as part of the ongoing efforts to combat anti-money laundering and combating the financing of terrorism (AML/CFT), with implications for commercial banks, insurance companies, mutual funds, and other financial institutions. The report provides a detailed analysis of Bermuda’s financial sector supervision and regulation, offering valuable insights for policymakers, regulators, and industry stakeholders.

Report Availability

The 67-page report is available as a free download in PDF format and can be accessed through the [website].