Bermuda Implements Tough Anti-Money Laundering Regulations

Introduction

In a bid to strengthen its stance against financial crime, Bermuda introduced the Proceeds of Crime (Money Laundering) Regulations 1998 on January 30th, 1998. The regulations established an anti-money laundering framework for various financial institutions in Bermuda.

Evolution of Anti-Money Laundering Regulations

The initial regulations were replaced by the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 on January 1st, 2009. The new regulations impose a comprehensive set of obligations on affected financial institutions, including:

• Customer Due Diligence: Financial institutions must conduct thorough due diligence on their customers to ensure they are not involved in illegal activities.
• Record Keeping: Institutions must maintain accurate and detailed records of all transactions to facilitate monitoring and reporting.
• Systems and Staff Training: Institutions must implement robust systems and train their staff to detect and prevent money laundering and terrorist financing.
• Internal Reporting Procedures: Institutions must establish internal procedures for reporting suspicious activities, including the appointment of a designated reporting officer.

Guidance and Supervision

To assist Regulated Institutions in complying with the Proceeds of Crime Act and Regulations, the Bermuda Monetary Authority has issued:

• Guidance Notes: Approved by the Minister, these notes provide detailed guidance on compliance requirements.
• Statement of Principles: The Authority outlines how it will exercise its powers under the Supervision Act to ensure effective supervision and enforcement.

Accessing Guidance and Regulations

Copies of the Guidance Notes and Statement of Principles are available on the Regulatory Legislative Documents webpage under Policy and Guidance/AML/ATF for Regulated Institutions to access.