Financial Crime World

Bermuda Sanctions Regime: Key Takeaways and Next Steps

Key Takeaways

The Bermuda Sanctions Regime requires reporting entities to take certain actions if they know or suspect that a person is a designated person or has committed an offence under the regime.

Reporting Entities Must Report

  • Reporting entities: must report to the Financial Services Investigation Unit (FSIU) if they know or have reasonable cause to suspect that a person is a designated person or has committed an offence under the Bermuda Sanctions Regime.
  • A licence is required for certain activities or transactions that would otherwise be prohibited by the Bermuda Sanctions Regime.

Licensing Grounds

  • The Minister, with the consent of the UK Secretary of State, can issue a licence where specific and relevant licensing grounds are met.

Penalties for Non-Compliance

  • There are penalties for non-compliance with the Bermuda Sanctions Regime, including imprisonment, fines, or both.

To ensure compliance with the updated regulations, take the following steps:

Review Current Sanctions Compliance Arrangements

  • Evaluate your current sanctions compliance arrangements to ensure that they remain compliant with the updated regulations.
  • Submit Licence Applications Online: If required, submit licence applications online using the online form on the FSIU website.
  • Stay informed about updates to the Bermuda Sanctions Regime, including new OT Orders and changes to guidance notes.
  • Consult with a specialist advisor if you are unsure about your specific circumstances or need further guidance on sanctions compliance.

The UK has left the EU, and the UK Sanctions and Anti-Money Laundering Act 2018 (SAMLA) has been brought into force. Over 30 new OT Orders have been laid by the UK Government to extend the application of new UK sanctions regulations to its overseas territories.

Penalties for Non-Compliance

  • Imprisonment of up to seven years
  • A fine
  • Both imprisonment and a fine
  • Disbarment from performing certain functions (e.g., directorships)

It is essential to note that this article provides general guidance only and should not be relied upon as specific advice. Consult with a specialist advisor for personalized guidance on sanctions compliance in Bermuda.