THE ASSESSMENT OF BERMUDA’S NATIONAL MONEY LAUNDERING AND TERRORIST FINANCING RISK Report Table of Contents Foreword ....................................................................................................................................................... 4 Executive Summary ................................................................................................................................... 5 Chapter 1: Introduction and Context ............................................................................................................. 7 Relevant FATF requirements ............................................................................................................................................ 7 Bermuda’s Geographical Context ..................................................................................................................................... 8 Bermuda’s Political and Juridical Context ......................................................................................................................... 8 Bermuda’s Economic and Social Context .......................................................................................................................... 8 Chapter 2: Bermuda’s AML/ATF Legislative Framework and Key Agencies ............................................... 10 Legislative Framework ................................................................................................................................................... 10 Core Legislation ................................................................................................................................................. 10 Additional Legislation ........................................................................................................................................ 12 Key AML/ATF Agencies .................................................................................................................................................. 13 The National Anti-Money Laundering Committee ............................................................................................ 14 and the Office of NAMLC ................................................................................................................................... 14 The Attorney General’s ChamBers (AGC) .......................................................................................................... 14 Bermuda Casino Gaming Commission (BCGC) .................................................................................................. 14 Bermuda Monetary Authority (BMA) ................................................................................................................ 15 Bermuda Police Service (BPS) ............................................................................................................................ 15 The Department of Customs (Customs) ............................................................................................................ 15 The Department of PuBlic Prosecutions (DPP) .................................................................................................. 16 Financial Intelligence Agency (FIA) .................................................................................................................... 16 The Ministry of Finance (MoF) .......................................................................................................................... 16 The Ministry of Legal Affairs (MoLA) ................................................................................................................. 16 The Registry General (RG) ................................................................................................................................. 17 Registrar of Companies (RoC) ........................................................................................................................... 17 The Superintendent of Real Estate (SoRE) ........................................................................................................ 17 The Barristers and Accountants AML/ATF Board (Board) ................................................................................. 17 Chapter 3: Bermuda’s AML/ATF Operational Framework .......................................................................... 19 A. Regulation and Supervision ................................................................................................................................... 19 Table 1: The Regulated Sectors ...................................................................................................................................... 19 The Bermuda Monetary Authority's Supervisory Framework ........................................................................... 20 Assessment of ML/TF risks and controls ........................................................................................................... 20 Licensing and Authorisations ............................................................................................................................ 20 Regulation and Information .............................................................................................................................. 21 Off-site and On-site Supervision ....................................................................................................................... 21 Enforcement ...................................................................................................................................................... 21 Monitoring and Reporting ................................................................................................................................. 22 The Financial Intelligence Agency’s Supervisory Approach ............................................................................................. 22 Outreach and Training ....................................................................................................................................... 22 Guidance and Communication .......................................................................................................................... 22 Supervision and Oversight ................................................................................................................................. 22 Risk Assessment ................................................................................................................................................ 23 1 The Superintendent of Real Estate’s Supervisory Approach ........................................................................................... 23 Licensing Framework ......................................................................................................................................... 23 Risk Assessment ................................................................................................................................................ 24 Legislative and Policy Interpretation ................................................................................................................. 24 Reporting Entity Assistance ............................................................................................................................... 24 Risk-Based Monitoring and Inspection Programme .......................................................................................... 24 Enforcement of Compliance .............................................................................................................................. 24 The Barristers and Accountants AML/ATF Board’s Supervisory Approach ..................................................................... 24 Outreach and Training ....................................................................................................................................... 24 Oversight and Supervision ................................................................................................................................. 25 Legislation and Guidance .................................................................................................................................. 25 Liaison with Other Relevant Bodies .................................................................................................................. 25 Risk Assessment ................................................................................................................................................ 25 Oversight of Charities .................................................................................................................................................... 26 Outreach and Training ....................................................................................................................................... 26 Risk Assessment ................................................................................................................................................ 26 Oversight and Monitoring ................................................................................................................................. 26 Addressing Non-Compliance ............................................................................................................................. 26 B. Transparency and Beneficial Ownership ...............................................................................................................