The Bermuda Monetary Authority (the Authority) employs a risk-based approach to the regulation and supervision of credit unions in Bermuda. The regulatory and supervisory framework is underpinned by principal legislation, The Credit Unions Act 2010, supplemented with updated statements of principles, policy and guidance.
The Authority’s off-site supervision program includes reviews of monthly, quarterly and annual regulatory submissions, and regular prudential meetings with senior management, which allows the Authority to have regular discussion and receive updates on the development of the institution’s business, including both past performance and future strategies.
The Authority’s on-site supervision program involves structured visits to an institution’s office, usually scheduled on a periodic basis. The on-site review will consist of interviews with management and staff, and assessing the institution’s internal controls, staffing, adequacy of procedures as well as the processes that management have put in place to monitor and control key risks in the business (including anti-money laundering compliance testing).
The Authority assesses licensed not-for-profit organisations using a risk-based approach; hence, any licensee deemed to have high or increasing risks can expect to be subject to enhanced onsite and offsite supervision by the Authority.