The Government has taken to Parliament new regulations designed to rein in the over-the-limit fees and unauthorised overdraft fees charged by Bermuda banks and deposit companies.

David Burt, the Premier and Minister of Finance, took the regulations to the House of Assembly on Friday, an important step, he said, in ensuring that Bermuda’s financial services framework provides fair treatment for consumers, while also aligning Bermuda with global best practices in banking conduct.

Mr Burt said the measures were part of a broader initiative to improve access and fairness in banking services.

The regulations provide clear rules governing the imposition of over-the-limit fees and unauthorised overdraft fees by banks and deposit-taking institutions.

He told Parliament: “The next steps will include advancing measures to ensure access to a basic bank account for all legal Bermuda residents, consistent with Bermuda’s obligations under international standards such as those of the Financial Action Task Force.

“Technical officers are currently reviewing the policy to be advanced in collaboration with the Bermuda Monetary Authority, and consultation has already commenced with the Bermuda Bankers Association.

“We will also advance reforms to address the overall structure and level of bank fees in Bermuda.

“Policy discussions in this area are progressing and the outcome will be the establishment of a banking fee framework that introduces stronger oversight of bank fees, through annual disclosure and ministerial review of fee increases.

“Taken together, these further reforms will ensure that banking services are transparent and affordable, while ensuring that every Bermudian is able to have access to the services of a bank account.”

Under the new rules, over-the-limit fees may not be charged when a customer exceeds their credit limit solely due to interest or other fees, and only once per calendar month for each product or service.

Likewise, unauthorised overdraft fees may only be imposed once per calendar month or once per quarter, where the billing cycle is longer than 90 days, for each product or service.

Customers must be given the choice, through an expressed agreement, whether to opt into over-the-limit arrangements.

Institutions must also provide clients with annual opportunities to review or terminate these agreements. Institutions that do not comply will be subject to fines.

Mr Burt told the Lower House: “These regulations give legal effect to the commitments previously made by this Government to address longstanding concerns about fairness in the banking sector.

“In practical terms, this means that the provisions prohibiting multiple or fee-driven over-the-limit and overdraft charges within a single billing period are now in force, ensuring that Bermudians are no longer penalised unfairly for unauthorised overdrafts.

“Further, the provisions requiring explicit customer opt-in and the opportunity for an annual review shall come into effect in April 2026.

“This transition period has been structured to provide institutions with sufficient time to update and adjust their systems, so that when these new requirements take hold, they can be implemented without disruption to customers.”