Bermuda Country Summary

FATF Status

Bermuda is not on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Bermuda was undertaken in 2018. According to that Evaluation, Bermuda was deemed Compliant for 28 and Largely Compliant for 11 of the FATF 40 Recommendations. It was deemed Highly Effective for 1 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.

Bermuda has established a robust legal framework to combat corruption, including the Good Governance Act 2012, which imposes significant penalties for financial abuse and enhances transparency in government contracts. The country is proactive in updating its regulatory standards to align with international benchmarks, thereby reinforcing its resilience against corruption and promoting accountability within its financial and governmental systems.

Bermuda, a self-governing British Overseas Territory, boasts a stable and robust economy primarily driven by international business and tourism, with a significant focus on the re/insurance industry. The island's GDP reached $6.5 billion in 2019, reflecting a modest growth of 0.5%, supported by sectors such as construction and real estate, although challenges remain in financial services and retail. The investment climate is favorable, characterized by low taxes, a skilled workforce, and a transparent legal framework that encourages foreign direct investment, while recent legislative changes aim to further enhance economic competition and attract new business ventures, particularly in the burgeoning fintech sector.