Title: Bermuda’s Anti-Money Laundering Authority Releases 2020 Report: Money Laundering and Terrorist Financing Risks Assessment

Overview

The Bermuda Monetary Authority (BMA), in collaboration with the Ministry of Finance and the National Anti-Money Laundering Committee, published the 2020 Money Laundering and Terrorist Financing Risks Assessment report. This comprehensive document outlines the risks of money laundering and terrorist financing to Bermuda.

Commitment to Anti-Money Laundering and Anti-Terrorist Financing Regulations

• Premier E. David Burt, JP, MP, highlighted Bermuda’s commitment to AML/ATF regulations.
• Bermuda recognizes the complexity of financial crimes and the importance of staying updated and responsive.

Evaluation of Bermuda’s Legal Framework, Key Agencies, and Operational Framework

Legislation

• Core legislations: Proceeds of Crime Act 1997 (POCA), AML/ATF Ordinance 2000, Proceeds of Criminal Conduct Regulations 2008.
• Set foundations for Bermuda’s AML/ATF regime.

Operational Framework Assessment

Regulation and Supervision

• Robust supervisory regime.
• FATF-style mutual evaluations.
• Strong international cooperation.

Transparency and Beneficial Ownership

• Details will be added soon.

International Cooperation

• Details will be added soon.

Identified Money Laundering Threats

1. Offenses committed abroad: fraud, corruption, insider trading, market manipulation, and international tax crimes.
2. Domestic threats: drug trafficking, emerging cyber-based extortion targeting Bermuda residents.

Sectoral Assessment

Trust sector

• Highest inherent money laundering risk (up from Medium-High in 2017).

Deposit-Taking sector, Legal sector, Securities sector, and Corporate Service Providers

• Medium-High risk.

Real Estate sector, Betting sector, Money Service Businesses, Dealers in Precious Metals and Stones, Lending sector, General Business/Reinsurance sector, High Value Goods sector, and Bermuda Stock Exchange

• Medium risk.

Accounting sector

• Low risk.

Terrorist Financing Risks Assessment

• Low risk, no evidence suggesting terrorist financing occurred in Bermuda.
• Medium-Low risks across some sectors: banking, MSB, and NPO sectors.

Conclusion

• Findings to help inform updates to action plan and align relevant agency action plans.
• Government institutions and private sector to assess and address potential risks appropriately.
• Bermuda remains committed to maintaining a strong and effective anti-money laundering and anti-terrorist financing regime.