Financial Crime World

Bermuda Tightens Anti-Money Laundering Regulations

Strengthening Bermuda’s Financial Integrity

The Bermuda Monetary Authority (BMA) has issued updated guidelines and sector-specific regulations to enhance the island’s anti-money laundering (AML) regime. This move aims to prevent Bermuda from being used as a haven for illicit financial activities.

New Regulations and Guidelines

  • The BMA has published General Guidance Notes and Sector-Specific Guidance Notes, outlining the requirements for AML/ATF regulated entities to comply with the new regulations.
  • The updated guidelines provide clarity on enhanced due diligence measures for higher-risk jurisdictions, as advised by the Minister in periodic Ministerial Advisories.

Enhanced Due Diligence Measures

Financial institutions are required to implement enhanced due diligence measures to prevent suspicious transactions from high-risk countries. These measures include:

  • Identifying and mitigating potential risks associated with transactions from high-risk countries
  • Implementing additional controls and procedures to detect and prevent money laundering and terrorist financing

Sectors Affected by the New Regulations

The new regulations cover various sectors, including:

  • Trust business
  • Securities
  • Corporate service providers
  • Digital asset businesses

Statement of Principles and Enforcement Guide

The enforcement guide outlines the authority’s approach to exercising its powers under the Supervision Act. The BMA spokesperson emphasized that “Bermudian financial institutions have a critical role to play in preventing money laundering and terrorist financing.”

Ministerial Advisories

Recent Ministerial Advisories have highlighted the importance of vigilance against money laundering and terrorist financing risks in higher-risk jurisdictions. These advisories are available on the BMA website for reference by AML/ATF-regulated entities.

Bermuda’s Commitment to Financial Integrity

The BMA’s efforts aim to maintain Bermuda’s reputation as a reputable international financial center, while protecting its citizens and businesses from financial crimes.