Financial Crime World

Combating Financing of Terrorism: A Call to Action for Stronger Fight Against Money Laundering and Terrorist Financing

March 19, 2008

In a bid to combat the financing of terrorism in Bermuda, experts are urging the government and financial institutions to take a more proactive approach. According to a recent report, the island nation’s risk-based approaches to fighting money laundering and terrorist financing could be improved upon.

Strengths and Weaknesses

The report highlights Bermuda’s well-developed legal framework for investigating and prosecuting money laundering, as well as its highly motivated and professional law enforcement and prosecutorial staff. However, it also notes that the Financial Investigation Unit (FIU) requires additional funding, staffing, and technical resources to effectively combat financial crime.

Areas of Concern

  • Lack of Expertise in Forensic Accounting: The FIU lacks expertise in forensic accounting, a critical tool in tracking down and prosecuting money launderers and terrorist financiers.
  • Coordination among Regulatory Bodies: While Bermuda’s integrated financial sector supervision regime is a major strength, it also means that there may be a need for greater coordination between regulatory bodies to ensure a more effective response to AML/CFT threats.

Recommendations

To combat financing of terrorism in Bermuda effectively, the report recommends:

  • Enhancing Risk-Based Approaches: The government and financial institutions should work together to enhance their risk-based approaches to combating money laundering and terrorist financing.
  • Providing Adequate Resources to FIU: The FIU requires additional funding, staffing, and technical resources to effectively combat financial crime.
  • Improving Coordination among Regulatory Bodies: Greater coordination is needed between regulatory bodies to ensure a more effective response to AML/CFT threats.

By taking these steps, Bermuda can strengthen its fight against money laundering and terrorist financing, and help keep the island nation safe from the threat of terrorism.