Financial Crime World

Bermuda’s Money Laundering and Terrorist Financing Risk Assessments

Political and Judicial Context

Bermuda, a self-governing British Overseas Territory, operates under a parliamentary government. Key elements of its governance structure include:

  • Head of State: The Governor serves as the head of state.
  • Government Leader: The Premier leads the government and is responsible for external affairs, defense, internal security, and police matters.
  • Legislature: A bicameral system consisting of a House of Assembly and a Senate, with limited powers for the latter to delay legislation.

Economic and Social Context

Bermuda’s economy primarily relies on tourism and international financial services. Key economic indicators include:

  • Licensed Banks: Four licensed banks serve both domestic and international clients.
  • Corporate Registry: Approximately 16,000 registered entities are listed, with around 1,300 being Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) regulated Financial Institutions (FIs).
  • Trading Partners: Principal trading partners include the US, UK, European Union, and Canada.

Legislative Framework

Bermuda has established a comprehensive suite of legislation to combat money laundering and terrorist financing. Key laws include:

  • Proceeds of Crime Act 1997 (POCA): Establishes criminal offenses for money laundering, sets the framework for confiscating proceeds of crime, and grants investigative powers to the police.
  • Suspicious Activity Reports: FIs and Designated Non-Financial Businesses and Professions are required to file Suspicious Activity Reports (SARs) and comply with regulations.

Conclusion

Bermuda has a robust legislative framework in place to combat money laundering and terrorist financing. However, it is essential for the country to continue monitoring and updating its laws and regulations to ensure they remain effective in preventing and detecting illicit activities.