AML/ATF Matters

Please be advised that The Cabinet Office issued a Press Release on 2 April 2024, regarding the Advisory issued by the Minister of Legal Affairs about the risks in a number of jurisdictions arising from inadequate systems and controls to combat money laundering and terrorist financing. The advisory has been posted on the Government portal and can be found here.  The Minister noted that the Advisory is especially relevant to those entities that have or are considering any business relationships with the specified jurisdictions or individuals or corporate entities in such jurisdictions.

The Advisory is in response to a Financial Action Task Force (FATF) statement dated 23 February 2024, and advises regulated sectors and relevant persons to:

  1. Consider Democratic People’s Republic of Korea (DPRK) as high risk for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 and apply counter measures and enhanced due diligence measures in accordance with the risks.
  2. Consider Iran as high-risk for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 and apply enhanced due diligence measures in accordance with the risks.
  3. Consider Myanmar as high-risk for the purposes of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 and apply enhanced due diligence measures in accordance with the risks.
  4. For the below jurisdictions, take appropriate actions to minimise the associated risks, which may include enhanced due diligence measures in high-risk situations:
  • Bulgaria
  • Burkina Faso
  • Cameroon
  • Democratic Republic of the Congo*
  • Croatia
  • Haiti*
  • Jamaica
  • Kenya
  • Mali*
  • Mozambique
  • Namibia
  • Nigeria
  • Philippines
  • Senegal
  • South Africa
  • South Sudan*
  • Syria*
  • Tanzania
  • Türkiye
  • Vietnam
  • Yemen*

It is also worth noting that as a result of review by the FATF, Barbados, Gibraltar, Uganda, and the United Arab Emirates are no longer subject to increased monitoring. This is reflected in Annex B of the Advisory.

Financial Sanctions

DPRK, Iran, Myanmar, Democratic Republic of the Congo, Haiti, Mali, South Sudan, Syria, and Yemen are also subject to financial sanctions in Bermuda. Therefore, regulated sectors and relevant persons also need to comply with the relevant financial sanctions measures that are set out in the respective Overseas Territories Orders for each regime.

Please note that as the nature and level of risk in the specified jurisdictions differ and it is important that the advisory and the annexes are read in their entirety.

 

Where relevant or applicable all members must take the following action straightaway:

  1. Check whether they maintain any accounts or hold any funds or economic resources for the persons set out in the various notices;
  2. Freeze such accounts, and other funds or economic resources;
  3. Refrain from dealing with the funds or economic resources or making them available to such persons unless licensed by the FSIU;
  4. Report any findings to the FSIU, Ministry of Legal Affairs HQ, Global House, 4thFloor, 43 Church Street, Hamilton, HM 12 together with any additional information that would facilitate compliance with the Bermuda Sanctions Regimes;
  5. Where a relevant institution has already reported details of accounts, other funds or economic resources held frozen for designated persons, they are not required to report these details again.

Failure to comply with financial sanctions legislation or to seek to circumvent its provisions is a criminal offence.

New and updated reported sanctions can be found below

15 January 2024 

25 January 2024

1 February 2024

23 February 2024

27 February 2024

27 March 2024

 15 April 2024

16 April 2024

25 April 2024

29 April 2024

30 April 2024

3 May 2024

7 May 2024

8 May 2024

For all sanctions prior to 1 January 2024, please see here.