Premier David Burt says his administration remains ‘firmly focused’ on protecting Bermuda from financial crime and related nefarious activities, as the National Anti-Money Laundering Committee (NAMLC), announced the publication of the 2024 National Risk Assessment (NRA) on Money Laundering and Terrorist Financing.
The NAMLC said that the publication is the fourth assessment in Bermuda’s ongoing series, underscoring the jurisdiction’s deepening expertise in identifying, assessing, and understanding Money Laundering and Terrorist Financing (ML/TF) risks.
‘The 2024 NRA reflects our collective vigilance and longstanding commitment across both public and private sectors to ensure Bermuda continues combating money laundering and terrorist financing effectively,’ Burt said.
Attorney General and Minister of Justice, Kim Wilkerson, in thanking ‘everyone who invested time and rigour this assessment demanded,’ said the ‘work done exemplifies Bermuda’s high standards and affirms our commitment to confront emerging risks precisely while keeping our jurisdiction anchored in resilience and the rule of law’.
The NAMLC said that the document builds upon Bermuda’s extensive experience in risk-based regulation and reflects the jurisdiction’s commitment to continually evaluating potential risks arising from new financial products, business practices, delivery mechanisms, and evolving technologies.
It said the findings will inform national AML/ATF policy and action plans, while also providing the private sector with crucial insights to strengthen operational resilience in a dynamic global environment.
‘The report reinforces Bermuda’s dedication to maintaining robust AML/ATF systems, supporting both business confidence and jurisdictional resilience.’
The report notes that the misuse of citizenship to carry out financial crime, particularly money laundering, is a serious risk to the island and that ‘Bermuda’s risk for money laundering remains high’.
It said that this reflects the fact that foreign predicate offences, such as fraud, corruption and bribery, market manipulation/insider trading and tax crimes, continue to pose a high or medium-high threat to Bermuda.
It said that drug trafficking also posed a high threat for Bermuda, as did proceeds from foreign and domestic crimes.
The threat in the trust and legal sectors was rated high for money-laundering risk, driven by the size and complexity of the sector, while the deposit-taking sector, securities and corporate service providers were rated as medium-high risk.
But it noted that the regulated insurance (long-term and life) and accounting arenas fared slightly better, with medium threat ratings.
‘Bermuda recognises the potential impact of money laundering on its financial sector. It is committed to continually updating its understanding of ML risks to enhance the country’s robust AML controls,’ saod the report, noting that the risk of the British Overseas Territory being involved in terrorst funding is low and that there was no evidence to show that the island had been used in this way.
Bermuda also maintained a low domestic terrorist threat.