Money laundering remains a serious risk for Bermuda
The misuse of citizenship to carry out financial crime, particularly money laundering, is a serious risk to the island, a newly released report says.
“Bermuda’s risk for money laundering remains high,” according to the 2024 National Risk Assessment on Money Laundering and Terrorist Financing. “This reflects the fact that foreign predicate offences [fraud, corruption and bribery, market manipulation/insider trading and tax crimes] continue to pose a high or medium-high threat to Bermuda.”
The document compiled by the National Anti-Money-Laundering Committee marks the fourth assessment in Bermuda’s ongoing series.
Drug trafficking also posed a high threat for Bermuda, as did proceeds from foreign and domestic crimes.
The threat in the trust and legal sectors was rated high for money-laundering risk, driven by the size and complexity of the sector, while the deposit-taking sector, securities and corporate service providers were rated as medium-high risk.
The regulated insurance (long-term and life) and accounting arenas fared slightly better, with medium threat ratings.
“Bermuda recognises the potential impact of money laundering on its financial sector,” the report stated. “It is committed to continually updating its understanding of ML risks to enhance the country’s robust AML controls.”
The NRA report also shows that Bermuda’s risk of being involved in terrorist funding is low. There was no evidence to show that the island had been used in this way.
Bermuda also maintained a low domestic terrorist threat.
The 2024 NRA builds upon Bermuda’s experience in risk-based regulation and reflects the jurisdiction’s commitment to continually evaluating potential risks arising from new financial products, business practices, delivery mechanisms and evolving technologies.
The findings will inform national AML/ATF policy and action plans, while also providing the private sector with crucial insights to strengthen operational resilience in a dynamic global environment.
David Burt, the Premier and Minister of Finance, said the Government remained firmly focused on protecting Bermuda from financial crime and related nefarious activities.
“The 2024 NRA reflects our collective vigilance and longstanding commitment across both public and private sectors to ensure Bermuda continues combating money laundering and terrorist financing effectively,” Mr Burt said.
The comprehensive assessment began in March 2024 and was led by the NAMLC, with active co-operation across all competent authorities, including financial regulators, market supervisors, legislative bodies and prosecutorial services. It was also supported by private sector stakeholders.
The report follows the Financial Action Task Force requirements for jurisdictions to identify, assess and understand their money-laundering, financial crime and terrorist financing threats.
The research also revealed that in 2020 the Covid-19 pandemic disrupted some AML/ATF and CPF efforts because it shifted the focus to the health and safety of the general populace.
Some deadlines had to be pushed back, for example.
During that period cybercrime intensified globally.
Kim Wilkerson, Attorney-General and Minister of Justice, said the work done on the 2024 NRA exemplified Bermuda’s high standards and affirmed the island’s commitment to confront emerging risks precisely while keeping Bermuda anchored in resilience and the rule of law.
• For more on the Bermuda Report on 2024 Money Laundering and Terrorist Financing Risk Assessments, see Related Media
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