These are guidance notes on the prevention of money laundering fiscal offences which have been issued to regulated institutions to help them comply with the Proceeds of Crime Act. Copies of the full notes can be obtained from Government Information Services.

The notes state:

1) Criminal conduct involves conduct amounting to the indictable offence of criminal tax evasion the test of such conduct occurring outside Bermuda is whether it would have constituted an offence in Bermuda;

2) A regulated institution has no positive obligation to establish whether a customer has paid all tax properly due from him;

3) In determining whether relevant knowledge or suspicion of tax related criminal conduct is likely to arise the following guidance is given:

a - a regulated institution will generally be unaware of the whole picture relating to the financial affairs of its customers and therefore not able to determine tax liabilities and their discharge;

b - a regulated institution is not under a general duty to investigate customers' tax affairs;

c - grounds for suspicion should not be raised just because monies are being routed through Bermuda or a transaction is complex;

d - a regulated institution may reasonably assume customers will meet their tax liabilities;

e - a regulated institution is not required to possess knowledge of tax or other laws of foreign jurisdictions

4) each case must be examined in the light of its particular circumstances and appropriate vigilance should be allied with sound `know your customer' policy and procedure

5) disclosure needs only follow suspicion that illicit benefit from the conduct formed part of a transaction in which the institution is involved

6) the Act does not have retroactive effect

7) reporting of a suspicion in accordance with the Act is a defence against possible accusation of assisting in retention or control of the proceeds of criminal conduct