BERMUDA GOVERNMENT MOVES TO ENHANCE BANKING REGULATIONS COMPLIANCE

The Government of Bermuda has tabled a bill aimed at enhancing banking regulations compliance in the country. The bill, entitled the Banks and Deposit Companies Amendment Act 2022, seeks to provide the Bermuda Monetary Authority (BMA) with an express power to issue codes of conduct for deposit-taking institutions.

Protecting Consumers from Unfair Banking Practices

According to Minister [Name], the primary purpose of the legislation is to protect consumers from unfair banking practices. The Minister noted that local banks have been increasing fees at a moment’s notice, leaving Bermudians to simply accept it.

• “Far too many Bermudians can unfortunately tell stories from their own experience or from close friends and family that have felt the wrath of local banks increasing fees at a moment’s notice,” said Minister [Name].

Regulating Banking Practices

The Government has also taken issue with banking practices such as credit card over-the-limit fees, which are seen as punitive and unfair. The Government believes that these fees should be regulated to ensure fair access to banking services.

• “This punitive practice has been addressed in many jurisdictions with regulations restricting a bank to one over-the-limit charge per billing cycle. We call on the Minister of Finance to direct the BMA to put an immediate end to this practice in our local banks,” said Minister [Name].

Regulating Banking Fees

The Bill also aims to regulate banking fees, similar to provisions that exist in other major countries. The Government believes that this will enhance consumer protection and ensure fair access to banking services.

• Some local banks have adopted global norms of limiting over-the-limit fees to one charge per billing cycle.
• However, some institutions still have not adopted these practices.
• Banking fees at local banks have increased by 400% over the last three years alone.

Call to Action

The Government has called on the Bermuda Bankers Association to address the escalating fees and charges that are outside of global norms. However, if they do not take action, the Government will introduce limits on banking fees to ensure fair access to banking services.

Next Steps

The legislation is expected to be debated by the House later today, and Minister [Name] has promised to provide more details as the legislative process unfolds. The Bill aims to enhance banking regulations compliance in Bermuda and protect consumers from unfair practices.