Bermuda prepares for 5th round mutual evaluation

The Bermuda National Anti-Money Laundering Committee (NAMLC) recently published a draft Proceeds of Crime Miscellaneous Act 2025 (Bill) for consultation in preparation for Bermuda’s 5th Round Mutual Evaluation which commences October 2026.  Since Bermuda’s last mutual evaluation in 2020, the Financial Task Force (FATF) Standards have been revised. As a result, the amendments in the Bill will ensure Bermuda remains compliant with FATF standards.  Below is a summary of the amendments.

Summary of amendments

• The Proceeds of Crime Act 1997 (POCA 1997) will be amended to correct the reference to the definition of fund administration provider business.
• Section 42B(1) of the POCA 1997 will be amended to enable all supervisory authorities to advise the Minister responsible for Justice on the designation of financial groups.
• Obligations for suspicious activity reporting will be extended to non-professional trustees.
• The scope of the national risk assessment will be expanded to include proliferation financing risks. This amendment addresses a new requirement of the revised FATF standards.
• The statutory members of NAMLC will be expanded to include the permanent secretary of the Ministry of National Security.
• Section 22 of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 (POCA SEA 2008) will be repealed to resolve a legislative disharmony in relation to the issuance of warning and decision notices.
• References to the Appeal Tribunal in the POCA SEA 2008 will be replaced by Supreme Court.
• A new discretionary power will be added to the POCA SEA 2008 enabling the issuance of rules, codes of conduct or statement of principles by a supervisory authority.
• A requirement to publish a notice in the Gazette will be added to the POCA SEA 2008 for the cancelling of registered institutions or regulated business or professions.
• The POCA SEA 2008 will be amended to grant competent authorities the power to impose civil penalties or disciplinary actions for all breaches of the Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008 (POCA Regulations 2008).
• The POCA Regulations 2008 will be amended to broaden and define correspondent relationships.
• The POCA Regulations 2008 will be amended to extend the prohibition of entering into a correspondent relationship with a shell bank to all AML/ATF regulated financial institutions.
• The Proceeds of Crime Appeal Tribunal Regulations 2009 will be revoked.

Comments should be sent by email to info-NAMLC@gov.bm by 8 September 2025.