The House of Assembly has agreed to a bill ending the use of bearer shares.

The concern has been that the financial instruments have been used by criminals for tax evasion and money laundering.

Those not converted into registered shares will become invalid three months after the Companies (Prohibition of Bearer Shares and Nominee Directors) Amendment Act 2025 comes into effect.

The bill also ends the use of nominee directorships.

During the bill’s second reading, Wayne Furbert, the Acting Minister of Finance, told the House the changes were being made to prepare for Bermuda’s next mutual evaluation by the Caribbean Financial Action Task Force next October.

He said the bill reflected Bermuda’s ongoing commitment to co-operate with international transparency and compliance standards.

The bill would further align Bermuda’s corporate governance standards with international regulatory requirements, specifically the FATF’s transparency measures.

“Bermuda was assessed by the same body and was found to have a robust and transparent beneficial ownership legislative regime,” Mr Furbert said. “However, in March of 2022 FATF strengthened the international standards on beneficial ownership of legal persons by amending recommendation 24.”

The One Bermuda Alliance gave their support to what is essentially a clean-up bill.

OBA deputy Opposition leader Scott Pearman said Bermuda stopped using bearer shares in 1970.

“Bermuda was 55 years ahead of the rest of the pack in that regard,” Mr Pearman said.