Bermuda is closing a legislative gap identified in its first proliferation financing risk assessment that was completed last year.

The Bermuda Monetary Authority wants to change its anti-money-laundering framework to require businesses it regulates to search for and eliminate risks linked to the financing of weapons proliferation. That includes both conventional arms dealing and nuclear, chemical and biological weapons.

In a consultation paper published this week, the National Anti-Money-Laundering Committee said the amendments to the Proceeds of Crime (Anti-Money-Laundering and Anti-Terrorist Financing) Regulations 2008 will align Bermuda’s regime with updated Financial Action Task Force recommendations on proliferation financing.

The changes would require AML/ATF regulated entities to identify and assess their own PF risks, document and keep those assessments up to date and share PF risk information with regulators. Firms would also be required to work to mitigate those risks, which senior management must sign off on.

The requirements would apply across financial institutions — including digital asset businesses — as well as lawyers, accountants, casinos, real estate professionals and dealers in high-value goods.

The proposals follow Bermuda’s first national proliferation financing risk assessment, completed in 2025.

Industry feedback on the proposals is due by February 11.

Bermuda is preparing for its next mutual evaluation by the Caribbean Financial Action Task Force, expected in October. The last review was completed in 2018, and Bermuda has spent the past year finetuning its framework related to beneficial ownership and asset recovery in preparation.