Financial Crime World

Registration Requirement for Non-Licensed Financial Institutions and Regulated Businesses

Effective August 1, 2021, a new registration requirement has been introduced for non-licensed AML/ATF regulated financial institutions and regulated non-financial businesses or professions. This requirement is aimed at enhancing the effectiveness of anti-money laundering (AML) and anti-terrorism financing (ATF) supervision and enforcement.

Registration Requirement

Under this new regulation, no non-licensed AML/ATF regulated financial institution or regulated non-financial business or profession shall carry on business unless it has applied to the competent authority that has supervisory duties over it and has been included in the register. This applies to all entities, including those designated in Schedule 2 as subject to the fit and proper test.

Exceptions

Notwithstanding this requirement, a regulated non-financial business or profession may operate without registration for a period of six months from the date it is added to Schedule 2 by an Order of the Minister issued under section 3A.

Disclosure Requirements

The regulation also requires any dealer in high-value goods registered under this section who accepts cash payments equal to or exceeding BMD $7,500 to make a disclosure to the Financial Intelligence Agency (FIA).

Consequences of Non-Compliance

Any person who fails to comply with the registration requirement commits an offence and shall be liable to a fine of up to $100,000 or imprisonment for two years on summary conviction, or to a fine of up to $250,000 or imprisonment for five years on indictment.

Registration Application Process

The regulation also specifies that any applicant seeking registration must provide information in accordance with section 10 of the Act. This includes:

  • Providing the applicant’s name and address
  • The nature of the business
  • The name of the reporting officer appointed for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008

The competent authority may refuse to register an applicant only if it appears that any information provided is false or misleading in a material particular, the applicant has failed to pay the application fee, or the applicant does not meet the fit and proper test.

Goals of the Regulation

The new regulation aims to:

  • Enhance the effectiveness of AML/ATF supervision and enforcement by ensuring that all regulated entities are registered with the competent authority
  • Enable authorities to better monitor and regulate these entities to prevent money laundering and terrorist financing activities