Bermuda Strengthens Anti-Money Laundering Laws as Regulated Institutions Face Tougher Compliance Requirements
In an effort to combat financial crime, Bermuda has recently strengthened its anti-money laundering (AML) regulations, imposing stricter obligations on financial institutions across the island.
New Regulations Come into Effect
The Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 took effect on January 1st, replacing earlier legislation. The new regulations set out a detailed set of requirements for affected financial institutions to ensure they comply with AML/ATF standards.
Enhanced Customer Due Diligence Procedures
Regulated institutions, including:
- Banks
- Trust companies
- Insurance entities
- Collective investment schemes
- Trading members of the Bermuda Stock Exchange
will need to adhere to enhanced customer due diligence procedures, which include:
- Maintaining accurate records
- Providing staff training
- Appointing a designated reporting officer for internal reporting procedures
Guidance Notes and Statement of Principles
To aid compliance, the Bermuda Monetary Authority has issued guidance notes approved by the Minister, providing regulated institutions with a clear framework for meeting their obligations under the Proceeds of Crime Act and Regulations.
Additionally, the Authority has published a statement of principles outlining its approach to exercising powers created by the Supervision Act. These documents can be accessed on the Bermuda Monetary Authority’s website in the Regulatory Legislative Documents section under Policy and Guidance/AML/ATF.
Aim of Revised Regulations
The revised regulations aim to ensure that Bermuda remains a secure and reputable financial hub, with regulated institutions playing a crucial role in preventing money laundering and terrorist financing. By strengthening AML regulations, Bermuda is taking a proactive approach to combating financial crime and maintaining its position as a leading international financial center.