Financial Crime World

Bermuda Tightens Grip on Money Laundering and Terrorist Financing

In an effort to strengthen its efforts against money laundering and terrorist financing, Bermuda has implemented stricter Anti-Money Laundering (AML) regulations in line with international standards set by the Financial Action Task Force (FATF).

Commitment to Combating Illegal Activities

As a member of the Caribbean Financial Action Task Force (CFATF), Bermuda is committed to combating money laundering and terrorist financing. The FATF’s 40 recommendations on preventing money laundering and nine special recommendations on combating terrorist financing are now being implemented in the island.

Key Regulations

  • Proceeds of Crime Act 1997: Expands provisions criminalizing the laundering of proceeds of crime and provides for the confiscation of benefits from criminal conduct.
  • Anti-Terrorism (Financial and Other Measures) Act 2004: Established a Suspicious Activity Reporting regime, requiring all persons to report knowledge or suspicion of money laundering or terrorist financing to the Financial Intelligence Agency (FIA).

National Anti-Money Laundering Committee

The National Anti-Money Launderling Committee has been established to advise the Minister of Justice on the detection and prevention of money laundering in Bermuda, as well as its participation in international efforts against the crime. The committee comprises top officials from various government agencies and institutions.

Regulatory Framework

  • Bermuda Monetary Authority (BMA): Responsible for regulating the financial services industry, ensuring compliance with AML/ATF systems and controls through supervision and inspection of affected financial institutions.
  • Strict Licensing Regime: Prevents individuals inclined to use Bermuda for illicit purposes from establishing corporate structures on the island.

Conclusion

These measures demonstrate Bermuda’s commitment to combating money laundering and terrorist financing, in line with international standards set by the FATF. The implementation of stricter AML regulations and the establishment of a National Anti-Money Laundering Committee further strengthen Bermuda’s efforts to prevent these illegal activities.