Financial Crime World

Bermuda Stands Firm Against Money Laundering and Terrorist Financing

Introduction

As a member of the Caribbean Financial Action Task Force (CFATF), a regional body of the Financial Action Task Force (FATF), Bermuda has reaffirmed its commitment to combating financial crimes by implementing strict Know Your Customer (KYC) rules. This move aims to prevent money laundering and terrorist financing, aligning with international standards set by the FATF.

A History of Anti-Money Laundering Measures

Bermuda’s anti-money laundering efforts began with the introduction of the Proceeds of Crime Act 1997 in January 1998. The act expanded provisions that criminalized the laundering of proceeds from crime, and it established a confiscation regime for individuals convicted of such offenses.

The Anti-Terrorism (Financial and Other Measures) Act 2004: A Significant Milestone

In addition to expanding anti-money laundering measures, the Anti-Terrorism (Financial and Other Measures) Act 2004 introduced a Suspicious Activity Reporting regime. This regime requires all persons to disclose knowledge or suspicion of money laundering or terrorist financing to the Financial Intelligence Agency (FIA). Failure to report such suspicions is considered an offense, and those who make disclosures are protected from civil liability.

The National Anti-Money Laundering Committee: A Key Player

The National Anti-Money Laundering Committee advises the Minister of Justice on detecting and preventing money laundering in Bermuda. The committee includes representatives from various government agencies, including:

  • Solicitor General
  • Director of the FIA
  • Financial Secretary
  • Commissioner of Police

Regulatory Oversight: The Role of the Bermuda Monetary Authority (BMA)

The BMA is responsible for ensuring compliance with anti-money laundering and anti-terrorist financing systems and controls through supervision and inspection of licensed entities. Its strict licensing regime prevents individuals inclined to use Bermuda for illicit purposes from establishing corporate structures on the island.

Key Takeaways

  • Bermuda has implemented strict KYC rules to combat money laundering and terrorist financing
  • The Proceeds of Crime Act 1997 expanded provisions criminalizing the laundering of proceeds from crime
  • The Anti-Terrorism (Financial and Other Measures) Act 2004 introduced a Suspicious Activity Reporting regime
  • Failure to report suspicious activities is an offense, with protection from civil liability afforded to those making disclosures
  • The National Anti-Money Laundering Committee advises the Minister of Justice on detecting and preventing money laundering in Bermuda

By adhering to international standards set by the FATF and implementing robust anti-money laundering measures, Bermuda demonstrates its commitment to combating financial crimes.