Title: Bermuda’s Battle Against Financial Crime: New Report Reveals Money Laundering and Terrorist Financing Risks

Bermuda’s Progress in Fighting Financial Crime

In the clear waters of the North Atlantic, an international financial hub fortifies its defenses against money laundering and terrorist financing. The latest report from Bermuda’s National Anti-Money Laundering Committee (NAMLC) titled “Bermuda’s National Risk Assessment for Money Laundering and Terrorist Financing 2020”, showcases the island nation’s efforts to combat these illicit activities.

Comprehensive Analysis of Risks and Vulnerabilities

The document acknowledges Bermuda’s significant progress in the fight against financial crime since its first risk assessment in 2013. With robust policy changes and resource allocation, Bermuda has consistently demonstrated its commitment to adhering to international standards.

Emerging Sectors: Digital Assets and Legal Persons

The report highlights the importance of maintaining a forward-looking strategy in the face of evolving threat landscapes. Two emerging sectors—digital assets and legal persons—are undergoing specialized risk assessments. Anticipated results are to be released later this year.

Money Laundering Risks

The assessment reveals that Bermuda’s risk rating for money laundering has increased to ‘High’. While this is due to a deeper understanding of threats rather than significant changes, the biggest risks continue to originate from foreign offenses such as fraud, corruption, bribery, market manipulation, and international tax crimes. Financial institutions serving Bermuda’s clients could be adversely impacted by potential money laundering derived from these foreign offenses.

Domestic Implications of Money Laundering

The report also considers the domestic implications of money laundering, with drug trafficking and cyber-based extortion representing significant concerns. However, the scale of domestic risks is minimal compared to foreign threats.

Terrorist Financing Risks

Despite low risks, the report emphasizes the importance of maintaining a robust anti-terrorist financing regime in Bermuda, as no country is immune to the threat.

Ongoing Efforts to Enhance Controls

The process to enhance AML/ATF controls across various financial sectors is ongoing, with legislative, institutional, and operational changes already implemented based on previous assessments. The findings from the 2020 National Risk Assessment will help inform the next round of updates to the action plan.

Bermuda’s Commitment to Combating Financial Crime

The Premier of Bermuda and Minister of Finance, The Hon. E. David Burt, JP, MP, reiterated his commitment to continuing the ongoing efforts to combat financial crime. “We remain determined to keep protecting Bermuda’s economy and borders from illicit financial activity, and to manage related risks appropriately.” The report underlines the importance of a collective commitment to compliance, vigilance, and hard work to stay at the forefront of this global fight.