FATF Revises Recommendations, Raising Questions About Bermuda’s Anti-Money Laundering Efforts

Introduction

The Financial Action Task Force (FATF) has made significant revisions to its recommendations on anti-money laundering and combating the financing of terrorism (AML/CFT). These changes may cast doubt on Bermuda’s previous assessments and ratings.

Revised Recommendations

The revised recommendations affect several key areas, including:

Risk assessment
Virtual assets
Beneficial ownership

These changes may require Bermuda to review its approach and ensure compliance with the new standards.

Ministry of Finance Response

A ministry spokesperson stated that Bermuda is working diligently to prepare for the 5th Round Mutual Evaluation Process. The country will engage with the public and private sector to ensure coordination and collaboration throughout the process.

Preparations for Mutual Evaluation

Bermuda has established working groups to address various aspects of the assessment, including:

Risk assessments
Technical gap analyses

The country is also revising its national AML/CFT policy and action plan to ensure compliance with best practices.

Changes to FATF Recommendations

The revisions to FATF’s recommendations come as a result of changes made by several countries. Recommendation 1 has been revised to require jurisdictions to identify and assess the risks of potential breaches, non-implementation or evasion of targeted financial sanctions related to proliferation financing.

Proliferation Financing Risk Assessment (NRA)

Bermuda is conducting a NRA in the first quarter of 2025. The NRA process will enable the country to:

Identify gaps in its regulatory framework
Enhance strategies and policies accordingly

Implications for Bermuda

While the revisions are intended to strengthen global AML/CFT efforts, they may also raise questions about Bermuda’s ability to meet the new standards. The country’s previous assessments and ratings will be subject to review.

Contact Information

For more information:

Office of the National Anti-Money Laundering Committee (O/NAMLC) Finance HQ, 2nd Floor Government Administration Building 30 Parliament Street, Hamilton, Bermuda HM12 Telephone: 441-295-5151