Are you compliant with the Bermuda AML/ATF Regulations?

Are you compliant with the Bermuda AML/ATF Regulations?

Deterring money laundering and the financing of terrorism is about creating value as well as compliance. KPMG can assist you in meeting your Bermuda Anti-Money Laundering and Anti-Terrorist Financing obligations.

1000

Need help? Contact us!

Related content

Why is it important?

Bermuda as a jurisdiction will be subject to a Mutual Evaluation by the regional body of the FATF in 2018, and a positive outcome will be crucial for retaining and attracting business and investment to Bermuda.

The Bermuda Monetary Authority (“BMA”), remains committed to maintaining the international integrity of the jurisdiction. To this end, it has continued to strengthen the AML/ATF regulatory environment in Bermuda and introduced updated Proceeds of Crime (Anti-Money Laundering (“AML”) and Anti- Terrorist Financing (“ATF”)) Regulations 2008, effective January 1, 2016, as well as accompanying guidance notes, and issued draft sector specific guidance notes for consultation.

Who falls in scope of the Bermuda AML/ATF regulations?

AML/ATF regulated financial institutions:

  • Banks and other deposit-taking businesses;
  • Investment businesses;Long-term insurance businesses;
  • Long-term insurance managers and brokers;
  • Fund administrators;
  • Money service businesses;
  • Trusts;        
  • Operators of an investment fund within the meaning of section 2 of the Investment Funds Act 2006; and
  • Corporate service providers.

 

Designated non-financial businesses and professionals, including: 

  • Real estate agents;
  • Professional legal advisers and accountants;
  • Dealers in high value goods; and
  • Casino operators.

What do the Bermuda AML/ATF regulations require?

All entities in scope of the regulations must adopt a "risk based approach" to the detection and prevention of money laundering and terrorism financing measures and have in place the following:

  • A documented Business Risk Assessment (BRA) in which entities must assess their ML/TF risks and decide how they will manage those risks, resulting in a systematic categorization of their ML/TF risks;
  • AML/ATF policies and procedures;
  • Sanctions policies and procedures; and
  • An annual AML/ATF independent audit to monitor and sample test the implementation, integrity and effectiveness of their AML/ATF policies, procedures and controls.

What challenges are financial institutions facing?

Many financial institutions are experiencing difficulties keeping up with the ever increasing requirements of the regulations. Particular challenges which clients may face include:

  • Compliance with customer due dilligence requirements, such as understanding and meeting the beneficial owner identification and verification requirements of the regulations;
  • Understanding how to meet the sanctions requirements;
  • For smaller organisations, the financial burden of compliance, when a full time compliance team member is not required or possible;
  • Problems justifying how the risk based approach has been implemented if this hasn't been documented;
  • Failing to update policies and procedures and business risk assessments regularly and in response to changing regulations;
  • For global companies applying global policies, difficulties where these have not been assessed and tailored to comply with Bermuda regulations;
  • Failing to adopt sanctions policies or adequately demonstrate effective implementation; and
  • Dealing with push back from customers.

How can KPMG help?

AML/ATF Independent Audits

The requirement for an annual, independent audit of AML/ATF compliance provides an opportunity for an entity to regularly review its overall AML/ATF framework, and respond to changes in regulations in a cost effective and efficient manner. We have a team experienced in performing AML/ATF audits using KPMG’s global AML/ATF methodology.

KPMG’s global methodology outlined below focuses on the twelve key areas, of your AML & ATF program, allowing us to gain an understanding of the elements of your AML & ATF compliance program and how these elements interface to effectively meet your AML & ATF regulatory requirements. Our assessment will identify opportunities to enhance your AML & ATF program, in addition to testing compliance. Our deliverable will be an easy to read report using red, amber, green rating of the components of your framework.

 

AML/ATF Framework Assistance

Our Bermuda based professionals work with businesses to assess compliance gaps, help design, build and maintain robust AML/ATF programs, policies, procedures, systems and controls. We help clients fulfil their compliance obligations in an effective, timely and cost-effective manner that reduces business disruption and is proportional to the level of risk actually faced. Importantly, we help clients go beyond mere compliance to extract tangible value from their AML/ATF operations.

 

Developing and undertaking due diligence programs

We can assist with the daily implementation of due diligence programs and the provision of staff to address experience and resource constraints.

 

Remediation assistance

We can assist clients remediate their client files either proactively or in response to on-site findings by the BMA. Our large team of AML/ATF specialists allows us to quickly respond to your need for additional resources with extensive remediation expertise.

 

Other services

Additionally, in Bermuda we have recently been helping clients by:

  • Investigating specific allegations of money laundering and the financing of terrorism; and
  • Assisting with vendor selection processes in order to purchase AML/ATF software applications which meet your needs.

 

Why choose KPMG?

  • KPMG has experienced AML/ATF professionals based in Bermuda. We are available to discuss your needs and requirements and bring real international experience, with local insight;
  • Draw on the combined resources of a local and international team of talented, experienced professionals; and
  • Take advantage of KPMG’s established methodologies, global knowledge sharing systems and professional development programs.

Contact us

For more indepth discussions on how KPMG can assist, feel free to contact any member of our team:

Charles Thresh;

Todd Kearns;

Alex McInnes

Grant Robshaw;

Nadya Ryzhova;

Stephanie Roos;

Maria Lingham;

Kate Taylor;

Abhilasha Sharma 

Pieter De Maertelaere; and

Konstantin Vyuchevsky.

© 2017 KPMG, a group of Bermuda limited liability companies which are member firms of the KPMG network of independent member firms affiliated with KPMG International Coopertive (“KPMG International”), a Swiss entity. All rights reserved.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.

 
Read more