Bermuda Receives High Praise for Anti-Money Laundering Efforts

FATF Report Highlights Island’s Strong Compliance

A recent report by the Financial Action Task Force (FATF) has commended Bermuda for its robust anti-money laundering policies and practices. The report, released as part of the FATF Mutual Evaluation 2020, found that Bermuda has implemented a comprehensive system to combat money laundering and terrorist financing.

Key Areas of Strength

• Clear Money Laundering Offence: Bermuda’s legislation establishes a clear money laundering offence, making it easier for authorities to prosecute individuals involved in financial crimes.
• Confiscation of Proceeds from Crime: The island has implemented effective measures to confiscate proceeds from crime, depriving criminals of their ill-gotten gains.
• Targeted Financial Sanctions: Bermuda imposes targeted financial sanctions related to terrorism and terrorist financing, demonstrating its commitment to preventing the financing of illicit activities.

Effective Regulation and Supervision

The report also highlights Bermuda’s efforts to regulate and supervise financial institutions, including:

• Customer Due Diligence Measures: The island has implemented effective customer due diligence measures, ensuring that financial institutions conduct thorough checks on their customers.
• Financial Intelligence Unit: Bermuda’s financial intelligence unit provides valuable support to law enforcement agencies in identifying and investigating financial crimes.

Areas for Improvement

While Bermuda scored highly overall, the report identifies some areas where improvement is needed:

• Transparency and Beneficial Ownership Requirements: The island needs to develop more robust transparency and beneficial ownership requirements for legal persons and arrangements.
• International Cooperation Mechanisms: Further development of international cooperation mechanisms is required to enhance Bermuda’s ability to combat financial crime.

The FATF Mutual Evaluation 2020 provides a comprehensive assessment of Bermuda’s anti-money laundering policies and practices, demonstrating the island’s commitment to maintaining a strong and effective system to combat financial crime.