Financial Crime World

Bermuda Takes Steps to Boost Financial Institution Security Measures

The island nation of Bermuda has taken significant steps to strengthen its financial institution security measures by implementing a range of anti-money laundering and anti-terrorism financing (AML/ATF) regulations. As a member of the Caribbean Financial Action Task Force (CFATF), a regional body of the Financial Action Task Force (FATF), Bermuda is committed to implementing international standards set by the FATF to combat money laundering and terrorist financing.

Strengthening Anti-Money Laundering and Anti-Terrorist Financing Regulations

The Proceeds of Crime Act 1997, which took effect in 1998, expanded provisions criminalizing the laundering of proceeds of crime and provided for the confiscation of a convicted person’s benefits from criminal conduct. The act also established a Suspicious Activity Reporting regime, requiring financial institutions to disclose knowledge or suspicion of money laundering or terrorist financing to the Financial Intelligence Agency (FIA).

National Anti-Money Laundering Committee

The National Anti-Money Laundering Committee, established under the Proceeds of Crime Act 1997, advises the Minister of Justice on detecting and preventing money laundering in Bermuda and participating in international efforts against the crime. The committee consists of representatives from various government agencies, including:

  • Financial Intelligence Agency (FIA)
  • Ministry of Justice
  • Police Department
  • Bermuda Monetary Authority (BMA)

Regulatory Measures

The Bermuda Monetary Authority (BMA), as the regulator of the financial services industry, has implemented a strict licensing regime to prevent individuals with illicit intentions from establishing corporate structures in Bermuda. The authority also conducts supervision and inspection of licensed entities to ensure compliance with AML/ATF systems and controls.

Additional Regulations

In 2008, the Minister of Justice made new regulations under the Proceeds of Crime Act, introducing the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations. These regulations further strengthened Bermuda’s AML/ATF framework by outlining specific requirements for financial institutions to detect and prevent money laundering and terrorist financing.

Reporting Requirements

Bermuda requires all persons to report knowledge or suspicion of money laundering or terrorist financing to the FIA. The government has also provided protection from civil liability for individuals who make such disclosures in good faith.

International Recognition

Bermuda’s commitment to implementing robust AML/ATF measures is evident in its efforts to combat financial crime and maintain a secure financial environment, which has earned international recognition, solidifying Bermuda’s reputation as a trusted and reputable financial hub.