The Bermuda Monetary Authority is strengthening requirements to clear “key persons” in financial services.

Regulated entities, applicants, service providers and other external stakeholders have been advised that as of October, applications involving “anti-money laundering/anti-terrorist financing regulated financial institutions” that require vetting of a “key person” must include a police clearance certificate for each relevant individual.

Such individuals include those subject to the fit-and-proper assessment required by the minimum criteria for licensing or registration in each of the regulatory Acts relevant to regulated financial services industries. The requirement will also apply when there are any changes to a key person of an AML/ATF RFI.

The new rule is in effect as of October 1, although applications received in full before that date will not be subject to the requirement.

The new police clearance certificate can be no more than 12 months old at the time of submission.

The BMA explained that it has a statutory responsibility to vet people who hold significant or controlling interests or who perform senior management or other key functions in an AML/ATF RFI.

“The introduction of police clearance certificates strengthens the authority’s vetting framework by supporting a more complete assessment of criminal record information,” the BMA said.

The requirement is intended to enhance the BMA’s ability to verify the fitness and propriety of key persons and to align Bermuda’s framework with international standards and regulatory practices in comparable jurisdictions.

“It also supports the authority’s ongoing commitment to safeguarding the integrity of Bermuda’s financial system,” the BMA said.

An applicant must provide a certificate from each country in which they have been an ordinary resident for more than six months at any time during the previous three-year period. Where a certificate cannot be obtained from a relevant jurisdiction, the authority may consider appropriate substitute documentation on a case by-case basis.

The BMA said: “The authority will update relevant application guidance and forms to reflect this change and encourages stakeholders to take early steps to prepare for this requirement, thereby avoiding delays in the application process. Stakeholders with questions or comments should contact aml@bma.bm.”