Financial Crime World

Title: Bermuda’s Money Laundering Scrutiny: A New Report Highlights National Risks

Subtitle: The National Anti-Money Laundering Committee Publishes Second Iteration of Money Laundering Risk Assessment

Bermuda, renowned for its thriving international financial sector, continues to reinforce its stance against money laundering and terrorist financing. The publication of the latest Money Laundering Risk Assessment report is a testament to this commitment.

Bermuda’s Money Laundering Risk Assessment

Background: In 2017, Bermuda conducted its second national money laundering risk assessment, following an earlier evaluation in 2013. These assessments were carried out in accordance with international standards, set by the Financial Action Task Force (FATF). The primary objective was to enhance the understanding of Bermuda’s money laundering risks and expose the specific threats given its unique geographic and economic context.

Rising Threat Rating: The 2017 assessment revealed that Bermuda’s overall money laundering threat rating has risen from medium to medium-high. Although this upward shift does not necessarily mean a worsening situation, it showcases a more comprehensive understanding and analysis of existing threats.

Identified Risks

  • Predicate offenses: Fraud, corruption, international tax crimes, and drug trafficking were identified as the highest money laundering risks for Bermuda. These offenses can generate significant proceeds that impact financial institutions and other intermediary sectors providing services to international clients.

  • Industries with the highest risks: The industries with the highest money laundering risks are banking, securities, trust service providers, and corporate service providers.

  • Medium to Medium-High inherent money laundering risks: Legal, insurance (long-term direct), money services businesses, dealers in precious metals, real estate, betting, and gaming sectors have medium to medium-high inherent money laundering risks.

Importance of Risk Assessments

The results of these risk assessments are invaluable for various stakeholders, including:

  • Government institutions
  • Regulatory bodies
  • Private sector

They provide crucial information to support efforts in addressing money laundering challenges and promote sustained economic growth in Bermuda.

Bermuda’s Ongoing Commitment

Bermuda reaffirms its dedication to effectively addressing money laundering and terrorist financing. The collaboration and synergy between the public and private sectors continue to play a significant role in these efforts.