|
Sanctions:
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
An overseas territory of the United Kingdom (UK), Bermuda is a
major offshore financial center. It is the third largest reinsurance
center in the world and the second largest captive insurance
domicile. Bermuda is not considered a major drug transit country;
however, the majority of the money laundering that occurs in
Bermuda is believed to be related to the domestic drug trade.
Money laundering proceeds are controlled primarily by gangs,
which have proliferated in recent years. There is no significant
black market for smuggled goods in Bermuda.
There are no free trade zones, hawalas or other informal financial
sector entities in Bermuda in which money laundering/ terrorist
financing occurs. However, there are cases where domestic
criminals utilize the formal financial sector for money laundering
purposes. Bermuda does not permit offshore banks; a foreign
bank may establish a subsidiary as a Bermuda company with its
own board of directors, but may not establish a branch. Bermuda
does not permit bearer shares, nor does it permit shell companies.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Both
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, trustees, investment businesses
(including securities brokers and financial management firms),
long-term insurance companies, money service businesses,
insurance managers and brokers, fund administrators, and
investment fund operators
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: All persons have a duty to report any suspicion
of money laundering that comes to their attention in the course of
their ‘trade, profession, business or employment’
Number of STRs received and time frame: 166 from January
through September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Nine in 2010
Convictions: Three in 2010
Assets forfeited: criminally: Over $ 350,000 in 2010 civilly: Not
available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Bermuda is a member of Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation can be found here: http:
//www.cfatf-gafic.
org/downloadables/mer/Bermuda_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Minister of Justice issued an Order in August 2010 that
expands the sanctions regime relating to Iran and allows for the
implementation of both UN and EU sanctions on designated
persons and entities.
Legislative amendments in 2010 create new regulations for wire
transfers and make it easier for law enforcement authorities to
track funds transferred electronically. The law also establishes the
statutory framework for supervising designated non-financial
businesses and professions (DNFBPs). The change includes
lawyers and accountants, corporate service providers, real estate
dealers, high value goods dealers, and dealers in precious metals
and stones. DNFBPs will be subject to coverage in the first half of
2011. In addition, the Act requires accountants who are members
of the Institute of Chartered Accountants of Bermuda and lawyers
who are members of the Bermuda Bar Association, as well as
other ‘regulated non-financial businesses and professions’ to be
subject to know your customer rules in 2011.
The Government of Bermuda should ensure its offshore sector
and exempt companies are subject to appropriate safeguards to
prevent their misuse as potential conduits of money laundering,
tax evasion, and other financial crimes. The low number of money
laundering prosecutions and convictions suggests an over-
reliance on STRs to initiate investigations. More emphasis should
be given to the police and customs to identify and pursue financial
crimes investigations proactively.
Bermuda is a United Kingdom (UK) Caribbean overseas territory
and cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for the Bermuda’s international
affairs and may arrange for the ratification of any convention to
be extended to Bermuda. The 1988 Drug Convention was
extended to Bermuda in 1995. The UN Convention against
Corruption, the International Convention for the Suppression of
the Financing of Terrorism and the UN Convention against
Transnational Organized Crime have not yet been extended to
Bermuda.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Migrant workers are employed in Bermuda under a strict system
of government work permits obtained by employers on behalf of
the foreign workers. The system may render migrant workers
vulnerable to exploitation and trafficking in the construction,
hospitality, and domestic service sectors. Some cases reportedly
involved employers confiscating passports and threatening
complaining migrant workers with having to repay the entire cost
or the return portion of their airline tickets, which may be beyond
their means and render them highly vulnerable to debt bondage.
Bermuda authorities and NGOs reported victims rarely lodge a
formal complaint out of fear of deportation. The Bermuda
Industrial Union in 2009 began offering union protection to some
migrant workers.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
October 10, 2010 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a phase
one peer review for Bermuda
View Review.....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Intelligence Agency (FIA)
None applicable
____________________________________________________
Offshore Jurisdiction Blacklists:
As a recognised offshore finance jurisdiction this country may fall
under various country offshore jurisdiction blacklists.
____________________________________________________
US State Department Money Laundering Report - 2011:
An overseas territory of the United Kingdom (UK), Bermuda is a
major offshore financial center. It is the third largest reinsurance
center in the world and the second largest captive insurance
domicile. Bermuda is not considered a major drug transit country;
however, the majority of the money laundering that occurs in
Bermuda is believed to be related to the domestic drug trade.
Money laundering proceeds are controlled primarily by gangs,
which have proliferated in recent years. There is no significant
black market for smuggled goods in Bermuda.
There are no free trade zones, hawalas or other informal financial
sector entities in Bermuda in which money laundering/ terrorist
financing occurs. However, there are cases where domestic
criminals utilize the formal financial sector for money laundering
purposes. Bermuda does not permit offshore banks; a foreign
bank may establish a subsidiary as a Bermuda company with its
own board of directors, but may not establish a branch. Bermuda
does not permit bearer shares, nor does it permit shell companies.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Both
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, trustees, investment businesses
(including securities brokers and financial management firms),
long-term insurance companies, money service businesses,
insurance managers and brokers, fund administrators, and
investment fund operators
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: All persons have a duty to report any suspicion
of money laundering that comes to their attention in the course of
their ‘trade, profession, business or employment’
Number of STRs received and time frame: 166 from January
through September 2010
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Nine in 2010
Convictions: Three in 2010
Assets forfeited: criminally: Over $ 350,000 in 2010 civilly: Not
available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
Bermuda is a member of Caribbean Financial Action Task Force
(CFATF), a Financial Action Task Force (FATF)-style regional
body. Its most recent mutual evaluation can be found here: http:
//www.cfatf-gafic.
org/downloadables/mer/Bermuda_3rd_Round_MER_(Final)
_English.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
The Minister of Justice issued an Order in August 2010 that
expands the sanctions regime relating to Iran and allows for the
implementation of both UN and EU sanctions on designated
persons and entities.
Legislative amendments in 2010 create new regulations for wire
transfers and make it easier for law enforcement authorities to
track funds transferred electronically. The law also establishes the
statutory framework for supervising designated non-financial
businesses and professions (DNFBPs). The change includes
lawyers and accountants, corporate service providers, real estate
dealers, high value goods dealers, and dealers in precious metals
and stones. DNFBPs will be subject to coverage in the first half of
2011. In addition, the Act requires accountants who are members
of the Institute of Chartered Accountants of Bermuda and lawyers
who are members of the Bermuda Bar Association, as well as
other ‘regulated non-financial businesses and professions’ to be
subject to know your customer rules in 2011.
The Government of Bermuda should ensure its offshore sector
and exempt companies are subject to appropriate safeguards to
prevent their misuse as potential conduits of money laundering,
tax evasion, and other financial crimes. The low number of money
laundering prosecutions and convictions suggests an over-
reliance on STRs to initiate investigations. More emphasis should
be given to the police and customs to identify and pursue financial
crimes investigations proactively.
Bermuda is a United Kingdom (UK) Caribbean overseas territory
and cannot sign or ratify international conventions in its own right.
Rather, the UK is responsible for the Bermuda’s international
affairs and may arrange for the ratification of any convention to
be extended to Bermuda. The 1988 Drug Convention was
extended to Bermuda in 1995. The UN Convention against
Corruption, the International Convention for the Suppression of
the Financing of Terrorism and the UN Convention against
Transnational Organized Crime have not yet been extended to
Bermuda.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
For Full report, click here
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
Migrant workers are employed in Bermuda under a strict system
of government work permits obtained by employers on behalf of
the foreign workers. The system may render migrant workers
vulnerable to exploitation and trafficking in the construction,
hospitality, and domestic service sectors. Some cases reportedly
involved employers confiscating passports and threatening
complaining migrant workers with having to repay the entire cost
or the return portion of their airline tickets, which may be beyond
their means and render them highly vulnerable to debt bondage.
Bermuda authorities and NGOs reported victims rarely lodge a
formal complaint out of fear of deportation. The Bermuda
Industrial Union in 2009 began offering union protection to some
migrant workers.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2009
No report available
____________________________________________________
AML News / Updates
October 10, 2010 - The Global Forum on Transparency and
Exchange of Information for Tax Purposes has issued a phase
one peer review for Bermuda
View Review.....
Links:
Worldwide AML Legislation (International Bar Association)
Financial Intelligence Agency (FIA)
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| Further Tables |
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*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| BERMUDA |
| KnowYourCountry |
|
|
| Last Updated: 16 April 2012 |