The Bermuda Monetary Authority (Authority or BMA) 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 (i.e., the Credit Unions Act 2010) and is supplemented with updated statements of principles, policy and guidance.
The Authority’s off-site supervision programme includes reviews of various 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 business strategies.
The Authority’s on-site supervision programme 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 an assessment of the institution’s internal controls, staffing, adequacy of procedures and processes management implemented to monitor and control key business risks, including anti-money laundering compliance testing.
The Authority assesses regulated institutions using a risk-based approach; hence, any licensees with high or increasing risks can expect enhanced on-site and off-site supervision by the Authority.