Bermuda’s National Anti-Money Laundering Committee Urges Compliance with Global AML/ATF Standards

The National Anti-Money Laundering Committee (NAMLC) in Bermuda has released an urge for the government to strengthen its Anti-Money Laundering/Anti-Terrorist Financing (AML/ATF) legislative framework. Here’s a summary of the announcements and upcoming changes.

Bermuda’s AML/ATF Efforts and Current Risks

NAMLC advises ministers responsible for Finance and Legal Affairs and Constitutional Reform regarding Bermuda’s progress in combating money laundering, terrorist financing, and proliferation. The island nation plans to amend relevant laws later in 2021 to further harmonize its regulations with global standards.

A consultation paper detailing proposed legislative initiatives was released in November 2021. The paper covers money laundering (ML), terrorist financing (TF), and proliferation financing (PF). Stakeholders are encouraged to give their feedback before November 30, 2021.

Bermuda has identified the following ML, TF, and PF risks via its historical assessments conducted in 2013, 2016, 2017, and 2020:

1. Money laundering
2. Terrorist financing
3. Proliferation financing

Reports on the most recent assessments (ML in 2020 and TF in the same year) are now available on the NAMLC website.

Understanding AML/ATF Offenses

Money laundering

Money laundering refers to disguising illegitimate funds as legitimate capital, often through complex financial transactions designed to hide their origins. Bermuda’s laws, including its Proceeds of Crime Act 1997 and Anti-Terrorism (Financial and other Measures) Act 2004, criminalize money laundering. Penalties can include additional charges for attempts, conspiracies, or incitement to commit these offenses.

Terrorist financing

Terrorist financing is the funding of terrorist activities, including support or planning. Techniques used are often similar to money laundering, helping to hide sponsors and financiers. Bermuda’s laws criminalize ML and TF activities as outlined in the Proceeds of Crime Act 1997, Anti-Terrorism (Financial and other Measures) Act 2004, and the Criminal Code.

Proliferation financing

Proliferation financing involves funding the creation, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, or stockpiling of nuclear, chemical, or biological weapons. Relevant criminal offenses are outlined in the Anti-Terrorism (Financial and other Measures) Act 2004.

Reporting Suspicious Activities

If you suspect a potential instance of ML, TF, or PF-related financing activity, report your concerns to the Financial Intelligence Agency (FIA). The FIA offers one-on-one training to help regulatory bodies and financial institutions understand suspicious activities and file reports accordingly.

Global Cooperation in Combatting AML/ATF Activities

Collaboration among organizations like the Financial Action Task Force (FATF), the Caribbean Financial Action Task Force (CFATF), and the International Monetary Fund (IMF) is crucial in fighting these illicit activities, as they frequently cross national borders. These institutions partner to develop more effective systems for detecting and preventing ML and TF.