Financial Crime World

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BERMUDA REGULATORY UPDATE: BMA ISSUES NEW AML/ATF GUIDANCE NOTES

The Bermuda Monetary Authority (BMA) has released an updated version of its Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Guidance Notes. This update provides financial institutions with clear guidance on how to comply with regulatory requirements, strengthening AML/ATF compliance and mitigating financial crime risks.

KEY CHANGES IN THE NEW GUIDANCE NOTES

The updated 2023 GN introduce more prescriptive language, providing regulated financial institutions (RFIs) with specific guidance on how to comply with regulatory requirements. The new guidelines also clarify the division of responsibilities between various regulatory bodies in Bermuda and outline the BMA’s enforcement powers.

Here are some key changes:

  • Adequate Qualification of Independent Auditors
    • A greater emphasis is placed on the importance of adequate qualification of independent auditors.
    • Independent auditors must demonstrate expertise and proficiency through continuing training and professional education focused on AML/ATF.
  • Customer Due Diligence
    • Clarification regarding customer due diligence, including identification and verification requirements for all customers.
    • Specific guidance is provided on acceptable documents for verification of identity.
  • Simplified Due Diligence (SDD)
    • More specific guidance is given on the application of SDD, allowing RFIs to determine when SDD can be applied.
  • Reliance Requirements
    • Changes are made to reliance requirements, making it clear that there can be no ‘chain’ or ‘passing on’ of reliance involving more than two persons or institutions.
  • Sanctions Risk Assessments
    • Further details are provided on conducting and documenting sanctions risk assessments.

THE IMPACT OF THE NEW GUIDANCE NOTES

The updated 2023 GN are designed to provide financial institutions with a clearer understanding of their AML/ATF compliance obligations. By providing specific guidance on key areas, the BMA aims to mitigate financial crime risks and strengthen the regulatory framework in Bermuda. As a result, financial institutions operating in Bermuda should review the new guidelines carefully and ensure that they are complying with the updated requirements.

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