On the 30th January 1998 the Proceeds of Crime (Money Laundering) Regulations 1998 came into effect and implemented an anti-money laundering framework for institutions such as banks, trust companies, insurance entities carrying out long-term insurance (not reinsurance), persons processing subscriptions or redemptions relating to collective investment schemes and trading members of the Bermuda Stock Exchange. Under the regulations these entities were defined as Regulated Institutions.
On the 1st January 2009, those Regulations were superseded by the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008. These Regulations impose a significantly detailed set of obligations on affected AML/ATF regulated financial institutions relating to customer due diligence, record keeping, systems and staff training. They also cover obligations in relation to internal reporting procedures, including the appointment of a reporting officer.
In order to assist AML/ATF regulated financial institutions to comply with the provisions of the Proceeds of Crime Act and Regulations the Bermuda Monetary Authority has issued General and Sector-specific AML/ATF Guidance Notes with the approval of the Minister. In addition the Authority has published a Statement of Principles relating to how it will exercise of a number of the powers created by the Supervision Act.