Financial Crime World

Title: Bermuda’s Fight Against Money Laundering and Terrorist Financing: Proceeds of Crime Act and CFATF Membership

Bermuda, a leading member of the Caribbean Financial Action Task Force (CFATF), is committed to combating money laundering and terrorist financing. As a regional affiliate of the Financial Action Task Force (FATF), Bermuda upholds the FATF’s global standards for anti-money laundering (AML) and countering the financing of terrorism (CFT). The FATF, with a membership of 170 countries, has issued a total of 49 recommendations to prevent money laundering and nine special recommendations against terrorist financing.

The Proceeds of Crime Act of 1997

Bermuda’s Proceeds of Crime Act 1997 (POCA Act) was introduced on January 19, 1998, broadening the criminalization of money laundering and establishing methods for the confiscation of proceeds from criminal conduct. The Act also introduced a Suspicious Activity Reporting regime, requiring individuals to report any suspected money laundering or terrorist financing to the Financial Intelligence Agency (FIA). Failure to report is punishable by law, while reporting parties are shielded from civil liability.

National Anti-Money Laundering Committee (NAMLC)

The National Anti-Money Laundering Committee (NAMLC) was established by the POCA Act, with the following key objectives:

  1. Advise the Minister of Justice on the detection and prevention of money laundering.
  2. Consult with international bodies in the fight against money laundering and terrorism financing.

The Minister, in collaboration with NAMLC, can introduce new regulations to strengthen Bermuda’s AML/CFT framework. Regulations were introduced in 2008, known as the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008.

Bermuda Monetary Authority (BMA)

Bermuda’s Bermuda Monetary Authority (BMA) oversees the financial services industry. Strict licensing requirements make it difficult for individuals engaging in illicit activities to establish corporate structures on the island. The BMA is responsible for supervising and enforcing regulations on affected financial institutions to ensure compliance with Bermuda’s AML/CFT systems through the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008.

CFATF Membership

As a proud member of the CFATF, Bermuda continually strives to maintain high AML/CFT standards and collaborate with international bodies to address emerging threats. This commitment is a testament to Bermuda’s dedication to fostering a secure and stable financial environment.

Bermuda’s robust AML/CFT framework, including the Proceeds of Crime Act and the CFATF membership, positions the island to effectively combat money laundering and terrorist financing.