Title: Bermuda’s Battle Against Financial Crime: A Comprehensive Risk Assessment

Introduction

Bermuda, an international financial center, maintains a robust and effective regime against money laundering (ML) and terrorist financing (TF) despite the ever-evolving risks. This report offers a comprehensive analysis of Bermuda’s ML risks based on the 2017 assessment.

Bermuda’s Inherent ML Risks

• Economic and geographic context: transparent regulatory environment, developed financial sector, and diversified economy but susceptible to ML and TF risks due to strategic location and financial services industry.
• Understanding of Bermuda’s National TF Risk: potential threats as no terrorist activities within the jurisdiction.

Bermuda’s ML Threat Rating

• Overall ML threat rating: medium-high.
• Major ML risks: foreign crimes, fraud, corruption, drug trafficking, international tax crimes.

ML Risks for Key Sectors

• Sectors with the highest ML inherent risk: banking, securities, TSPs, and CSPs.
• Sectors with medium-low to medium ML inherent risk: Bermuda Stock Exchange, dealers in precious metals, real estate, dealers in high-value goods, and accountants.

Measures Taken to Reduce and Manage AML/ATF Risks

• Legislation: comprehensive and evolving AML/ATF legislative framework.
• Institutional and operational changes: enhanced regulatory oversight, increased investigation and intelligence capabilities, implementation of FATF Recommendations.
• Continuous efforts: national strategy and action plan.

Conclusion

• Government focus: intelligence and law enforcement agencies on financial crimes.
• Private sector action: review and adjust AML/ATF activities.
• Ongoing commitment: international obligations in effectively combating ML, TF, and proliferation financing.